Daniel Faris, a graduate from the Writers Institute at Susquehanna University, expresses his thoughts through blogging about politics, technology, and progressive music. This guest post is his piece of work.
Key pillars of strategic saving are widely recognized and include keeping a budget, storing up a minimum of three months’ salary, and avoiding taking on excessive debt. Common financial pitfalls, such as the practical advice against dining out for every meal, are also well known.
Albeit, despite nailing down the fundamental skills of budgeting and saving, you may not be conscious of certain less obvious yet harmful expenses sneaking into your budget. If you think you should be setting aside more money, examine your spending routine for one or multiple of these six potential financial sinkholes:
1) Unnecessary ATM fees
Several banks persist in issuing fees to non-members using their ATM. Regardless, there is no justification for squandering funds on ATM charges.
If you need cash, emergencies are unavoidable but strive to plan ahead as far as you can. Use your bank for ATM cash withdrawals or request cash back at the grocery store during routine trips or a quick milk run. Infrequent cash usage? Aim to keep around $20 in your wallet for unplanned “cash only” scenarios, such as toll booths, or contributing towards a gift for an expectant colleague.
2) Overuse of disposable items
Reducing the use of disposable goods offers double benefits; it conserves the planet and money. Our strong disposable convenience culture often traps us into thinking it saves us time. Yet, reusable items are frequently just as handy, requiring a minor habitual change.
Instead of unnecessary spending on bulk bottled water, consider purchasing a home Brita filter. As for paper towels, a single roll may not seem expensive but ponder on your yearly expense. Transition to microfiber hand towels that are durable, reusable, and highly effective – simply clean them with your regular laundry.
3) Shopping on an empty stomach
You may understand the downside of impulsively tossing items into your shopping cart, but how do you resist such allure? The colorful deals in checkout lanes can be incredibly tricky to overlook.
To maintain your grocery budget – or your weight – ensure you always shop on a full stomach. Shopping hungry makes you susceptible to spontaneous spending and store marketing tricks. Try eating a small, healthy snack before hitting the store without having a full meal.
4) Habitual speeding
Speeding is an expensive habit. Besides the fines, your insurance premiums might shoot up. Excessive speeding can also negatively affect your fuel efficiency, thereby pumping up your fuel costs.
The real danger of the speeding trap is the misconception that speeding saves time. Instead, try leaving early or accepting the consequences of tardiness.
5) Impulsive purchases
Purchases like a new dress or a gym membership often end up as costly decor or reminders of wasted resources.
Only buy what you absolutely need or desire; don’t squander money on items or activities simply because they might be useful or wanted later. Avoid emotional purchases rationalized by “it’s on sale” or “I have a coupon.” If you wouldn’t buy or use it without a discount, you’re not genuinely saving any money.
6) Overlooking overlapping services
Retaining both a landline and a cell phone, having accounts with Netflix, Amazon Instant, and cable, or possessing a laptop, a tablet, and a smartphone. Stop paying for duplicate products or services! Just find out what fits your needs best and does the most tasks – and let go of the rest.
This tip applies to everything from clothes to kitchen gadgets, freeing up both space and savings.
Final Reflections
Our most damaging spending habits often go unnoticed. At times, we maintain these due to the fear of potential increased effort or time, even though it could save money. However, with some financial self-awareness, proactive planning, and practice, it’s achievable to grow your savings by merely tweaking a few habits.
