7 Tips to Stop Wasting Money

Saving money is hard enough with the mountain of daily expenses out there. What makes it even harder is if you’re wasting money. Thankfully there are a number of simple and effective tips to stop wasting money and make sure your wallet is just a little bit more full at the end of the month.

Buy Things You Need

This one sounds simple, but there is a little bit more to it. Buying what you need means the obvious things like food, clothing and paying utilities, but it also means debating whether you really need that new pair of shoes, online subscription or new rug. It’s a good idea to “sleep on it” if you want something that you don’t necessarily need. If you wake up the next day and the desire is still burning inside you – and you have the money – then go ahead. But avoid impulse purchases, they will vacuum out your bank account like a high-powered Hoover.¹

Generics Are Just Fine

Buying generic drugs – and foods – is another important money saver. Instead of buying Aspirin brand aspirin isn’t necessary. Go for the generic label and save money. In the short term it might seem like pennies but in the long-term it adds up. At the store why buy brand-name popcorn or salad dressing? Buy the house brand and save. The same comes to clothing, household items and online purchases. There is no need to chase brand names, instead focus on products that meet your needs and save you money.²

Watch Out for the Food Trap

Food is absolutely a necessity, but not all food is a necessity. Not all food is fairly-priced either, especially junky packaged items and small-sized containers that are overpriced. Write out a food budget for the week or month and stick to it. Buy the essentials and cook staples like rice, vegetables and meat, leaving ice cream, chips and soda as an occasional luxury. This will save you a surprisingly large amount of money, as will cutting down on products like alcohol and cigarettes. As for bottled water – are you kidding me? Don’t even think about it.¹

Insurance Costs Can Add Up

Insurance is a necessity if you drive or own a home, but watch out for its rising costs. You can drain a huge chunk of change on overpriced insurance can really sink you. The solution is to shop around for the most competitive rates and consider raising your deductibles significantly. Sure this means you will have to pay more out of pocket in the event of an accident, but it can make your premiums much lower and save you a lot in the long-run.²

Are You Living a Lifestyle of the Rich and Famous?

Your first instinct may be to say “of course not,” but is that true? Are you paying for high-priced movie subscription services, take-out food deliveries, leaving the air conditioner on when you’re not in the room and otherwise being reckless with your spending? Maybe you overfill the kettle every time you make tea. It seems like nothing, but it wastes energy, and energy costs money. Are you buying high-priced craft beer? Consider cutting down to a lower-priced beer. Consider being more cautious about your daily routines and spending. It will save you money and lead to less stress.¹

Make Those Credit Card Payments on Time and in Full

Debt is – of course – the silent financial disaster artist. Treat your credit card like cash and pay it off fully every month. Make sure your card has a competitive annual percentage rate (APR) and, in the case that you can’t pay it off fully, contact the card company and negotiate an installment plan if possible. Credit cards can be an immense asset but they can also lead to impulse purchases, debt and wasting money.³

[1] https://www.moneysavingexpert.com/family/stop-spending-budgeting-tool/
[2] https://www.rd.com/list/13-secrets-to-stop-wasting-cash-now/
[3] https://www.cnbc.com/2019/11/06/underrated-ways-to-stop-wasting-money-in-2020.html