Money mistakes… It’s the thing that most often stops us from obtaining financial security. Most people have no problem making money. They get a job, start a business, take on freelance work. That’s easy. It’s the saving money part that’s hard.It’s true that although we work more hours per week, and have higher incomes than past generations most Americans have less than $1,000 in their savings accounts.
So the questions have to be asked:
- Where’s all our money going?
- Can you make adjustments to save more of my income?
It all starts with avoiding these insanely common money mistakes. If you want to stop throwing money away and keep more of your hard-earned cash, you should start here…
1. Stop eating out so often.
Fast food is delicious, convenient, fast… It’s also expensive compared to buying groceries and cooking at home. This is an entirely avoidable money mistake that far too many people make. Next time you’re craving your favorite fast food say no, or try cooking it yourself instead. Yes, you read that correctly. There are YouTube channels and cookbooks that show you how to whip up your favorite restaurant’s secret recipes at home.
Check out this YouTube channel
It’s just as delicious and cost less than half the price.
2. Stop putting off paying credit card debt.
The more you put off paying your credit card debt, the more interest you incur, the more fees and interest you pay. Don’t make this mistake. Pay your credit card bills in full as soon as possible to keep more of your hard-earned money in your wallet.
3. Not sticking to your monthly/weekly spending budget.
Setting a monthly and weekly budget is the first step to take if you want to stop throwing away money. However, once you set your monthly spending budget, you have to stick to it. That’s the tricky part, but it’s 100% necessary if you want to build up your cash reserves. Set your budget and stick to it.
4. Don’t increase your spending with every increase in income.
In finance, this is known as the “wealth effects.” Studies have shown that the more money a person makes, the more money they typically spend, which keeps them running on a financial treadmill. The next time you get a raise at work or come into some other financial windfall don’t make the mistake of throwing your money away by increasing your spending. Make the smart decision and increase your savings account balance.
5. Don’t let overdraft fees put a dent in your checking account.
Overdraft fees are probably the worst way people throw money away on this list. With fees ranging upwards of $30 letting your checking account reach a negative balance is a costly mistake. If you notice that you often incur overdraft fees try moving your checking over to a bank that offers overdraft protection. (Instead of an overdraft fee the overage is looked at as a loan that you pay a small amount of interest on until it’s paid off.) Or a checking account that has no overdraft fees at all like Simple Online Banking.
6. You don’t let your savings accumulate.
The point of having a savings account is to actually save money and accumulate interest. If you’re always dipping into your savings at every whim, you’re making a huge money mistake.
7. Don’t let weekend leisure put a dent in your wallet.
A night on the town with the boys for a few drinks is great and often well needed after a long week at work. Unlike peanuts, money and alcohol don’t mix well. I think we’ve all woke up with a hangover and a negative checking account balance at least once in life lol. To stop yourself from overspending and throwing money away during weekend leisure time make sure you have a separate debit card just for recreational activities. And never link this card to your primary savings or checking account!
If you want to stop throwing money away, avoiding these 7 common money mistakes is a great first step. So ditch the fast food, stick to your budget, and avoid pesky overdraft fees. It might be difficult in the beginning, but you’ll thank yourself later.