Okay, before we get into the specific money wasters, there’s a general principle you should be aware of…if you’re buying things that provide only a temporary sense of satisfaction, you’re probably wasting money. It doesn’t matter what it is—if it’s unnecessary and you grow bored with it, it was a waste of money. Check your closets for examples.
I’m not saying you should take a “vow of poverty.” The Lord wants us to enjoy the resources He’s given us, but that must be tempered by the principle that we’re merely stewards and must use His resources wisely.
Of course, we live in a culture that promotes spending. It’s a big problem. One survey showed that the average adult spends around $1,500 monthly on non-essentials. No wonder so many Americans are living paycheck to paycheck. Imagine what that kind of money would do if put into savings or invested for retirement.
Let’s look at our 6 money wasters for today…and what you can do about them.
A restaurant-prepared meal will cost you three times what you would pay for the same meal cooked at home.
Eventually, a smartphone will have to be replaced…but the longer you delay upgrading…the more money you keep in your pocket. This year’s red hot phone is next year’s discount model. And you have to ask how smart your phone needs to be. Most of us don’t use the features we have now.
Clothes wear out and need to be replaced…so you must include that in your budget … but those spending decisions should be practical … not a way to boost your ego.
Plus, you don’t want to participate in something that disproportionately hurts the poor. A Bankrate report found that low-income households spend as much as 13% of their income on lottery tickets—far more than higher-income earners.
So, instead of buying an extended warranty, do your homework to ensure you’re buying a quality item. Most will have an adequate manufacturer’s warranty anyway. Then, ensure you have enough money in your emergency fund to cover any necessary repairs.
More and more folks are dropping cable and satellite TV and using only streaming apps, but even there, you can waste a lot of money.
A survey by FinanceBuzz showed that a quarter of households have at least three more streaming apps than they did two years ago…and one in 10 reported having no idea how much they’re spending on streaming.
So keep track of what you’re watching, and if you’re not getting your money’s worth from an app, drop it. That’s one great thing about streaming apps—no service contract, so you can drop it anytime.
Okay, those are your 6 big-time money wasters. We hope you find this helpful.
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