Stop Wasting Money

Benjamin Franklin once said, “a penny saved is a penny earned.”¹ The modern upgrade to that observation might be that $100 not spent is more like $143.²One way to find the money to meet your spending or saving needs is to examine your current spending habits and consider eliminating money wasters.

Top Money Wasters

  1. Bargain Shopping ... and its Expensive Cousin, Impulse Buying
    Fire sales and impulse buying (such as products sold on infomercials) can be money wasters, made worse by how often they sit idly in a closet or drawer.
  2. Unused Gym Memberships
    At a monthly rate of $40-50, unused memberships can add up over time. Begin your fitness commitment inexpensively by walking or jogging; you can graduate to the gym once you know you’re going to stick with it.
  3. Cable and Cell
    Call your provider and see if it’s possible to negotiate a new rate. Cell providers, who face stiff competition, may be responsive. Cable companies may be less so, especially if they are a single provider, but you can review your package and make sure you are not paying for service you don’t want.
  4. Paying for Water
    Switching from an essentially free product to one that may cost up to $1.50 a day or more is real budget leak. Consider purchasing a reusable container and using that during the day.
  5. Gourmet Coffee
    $2 or $3 a day may not seem like a lot of money, but when Americans step into a gourmet coffee shop, they may often buy more than just the coffee.Consider brewing your own coffee. It can be ready before you leave for work, and it’ll save you the wait in the drive-through line!
  6. Eating Out
    On average, Americans go out to lunch twice a week and spend $10 each time. That works out to $936 annually.³ While dining out may be one of life’s pleasures, eating out is often less about socialization and more about convenience. Twice a week may not seem like much, but over time it can add up.
  1. Brainy Quote, November 2014
  2. This is a hypothetical example that assumes a 30% tax rate. The example is used for illustrative purposes only. It is not representative of any specific tax rate or combination of tax rates.
  3. Forbes, September 25, 2013

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG, LLC, to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Copyright 2015 Faulkner Media Group.

Post by Phil Ratcliff

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