[I]f you’re trying to become more financially stable and improve your credit rating, you must be careful with how you spend your money. While you don’t want to give up everything fun in life in order to be frugal, you also want to avoid wasting your money on unnecessary expenses. Here are three ways people often waste their money.
You make a New Year’s resolution to lose weight, so you join a gym thinking it will motivate you to stick with your goal. By May or even February, you find you’re going less than you planned to. Now you’re paying for a membership you don’t use. If you locked into a year’s contract, you’re stuck paying the dues until it runs out.
A better use of your money would be to purchase some home exercise equipment and create a workout plan around your schedule. Unless you’re the type of person who must go to a gym and you actually use your membership, this is a smarter way to reach your goals.
A Daily Coffee Stop
You like your gourmet coffee, so you stop at the little coffee shop on your way to work every morning. If you spend $5 a day for a cup of java, that means you’ll spend $100 a month on this one item. That’s $1200 per year.
Most people don’t think about the total cost of a regular purchase, but it can add up. Just think what else you could do with that money. A better option would be to buy a gourmet coffee machine or espresso maker and create your own treats at home.
Maybe it’s a pair of name-brand jeans, a new pair of shoes or the latest movie with your favorite actor. Everyone has little splurges that they like to make when they can afford them. There’s nothing wrong with treating yourself if you have the money. The problem comes when you take away from a bill that’s due to afford these luxuries.
You can often find a cheaper way to get what you want if you are willing to make the effort. Look for sales or try second-hand stores. You can even browse online sales groups to get a gently used version of whatever you’re looking for.
Think outside the box on your favorite ways to spend money and you’ll discover it’s even more fun to save money then to spend it.
If you are just starting out on your own, you may have a hard time getting credit cards or loans because of a lack of credit history. You must build credit to get access to the best credit cards and loans, but you can mess things up if you don’t know how to do it […]
One of the worst feelings you can have is when you have a bill coming due and no way to pay it. You have either spent all of the money or you have to spend it on something more important. You don’t want to have to deal with those phone calls from creditors because you […]
[Y]ou open up the credit card statement only to see another $30 late payment fee assessed. Ugh! You can’t believe you forgot to make a payment on time again. In between running the kids to daycare or school, meeting with clients and taking care of errands on the weekends, some things just get pushed aside. […]
[G]etting approved for a credit card is a sign of responsibility. It can give you freedom with your finances. For instance, you can book a hotel or buy airline tickets, which would be difficult without a card. You should know why you want a credit card and understand if those reasons are good or bad. […]
You hear financial experts preach about getting out of debt. They tell you to cut up your credit cards and pay for everything with cash. While some people may need to follow this advice, you may wonder if it’s the case for everyone. Should you avoid ever having any kind of debt again? Not Avoidable […]
[T]he busy summer season is behind everyone, and the upcoming holiday season is a few weeks away yet. Now is the time to focus on goals you have set. One of the most important is saving money. Fall = Transition Time You are transitioning from the lazy days of summer, times when you spent a […]
[W]hen you hear about identity theft, you may think about all of the public computers in use as well as the credit card machines in stores. While these are all areas that are vulnerable to hackers and those who want to steal your identity, one of the most dangerous areas is at home. Why? Because […]