Top 5 Ways People Waste Money

It’s hard to hold on to a dollar these days. The days of a nickel for a loaf of bread have been consigned to the musty pages of history books and we’re not likely to see them again. However at a time where prices soar, we can fight back! And we can do it by not throwing money away. Here are the top five ways people waste money:

1. How Convenient

We often hear of robberies at convenience stores. They are a problem, sure but there are thousands of hold ups every minute of every day that go unreported. And you are the victim! Have you seen the prices at these places? $3 for a soda! $5 for milk! The list goes on and on! We’ve become a culture that will pay for convenience and pay big. Go to the supermarket or price club for these items. Think ahead and stock up at a fair price.

2. Fee-lings

Don’t we all love paying fees? Oh, that’s right, we don’t. And yet these days there seems to be fees for everything. Why pay an annual fee for a credit card? You’re paying for the privilege of being in debt! And bank fees! Yes, the same banks that make millions in profits EVERY year have to hit you up for a buck or so every time you want some of your own money! Fees: Plague. Same thing. Both are to be avoided.

3. Buddy, Can You Spare A Dime?

I don’t know about you, but I’m sick to death of being nickel and dimed to death. Can you remember the last time you paid the actual price for a plane ticket or hotel stay? Why does everything have an extra charge attached to it? Airlines make us pay for fuel, food, the airport has its nice Airport Extortion (I mean, Improvement) Fee. Being told what to tip, being charged for butter on that $10 popcorn. Right on down the line our pockets are being picked.


4. Impulse Power

See something bright and shiny? Think you can’t live without it? Think again. Literally. Keep your wallet in your pocket. Go home and think carefully about whether you really need that shiny bauble. Impulse buys are the equivalent of deciding, on impulse, to open your car window and toss out the contents of your wallet. And are usually about as rewarding. Think before you buy. Long and hard. If after all that deliberation you decide you really can’t live without some doodad, then buy it. It’s more likely you’ll have a change of heart though and you’ll save a bundle in the long run.

5. Wallet Wide Open, Eyes Wide Shut

There was once a time where we had to work for what we own. Now we live in a climate of ultimate choice all the time. With the world at our fingertips, we want instant gratification and we want it now! Well, with infinite choice come infinite resources. So shop around. Know what you’re buying and whether or not you’re getting it at the best price. It’s all about spending money wisely and getting the best value for your buck.

This article is a guest post from Andrew Salmon. He writes about IVAs and other financial topics for IVA.net.

{ 6 comments… read them below or add one }

1 Alexia May 14, 2010 at 11:06 pm

OMG! I am guilty of all of the above!

P.S. Love your blog.

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2 LittlePeopleWealth May 15, 2010 at 5:43 am

🙂 You cracked me up! Thanks.

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3 Spending Lana March 20, 2011 at 9:20 am

Hilarious post. Buy, borrow, spend – yeah right on! Isnt it great to live in a consumer world. It all about the money – but we want it fast these days and fast loans are the key to it – Spending your future earnings.

/Lana

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4 Heidi March 21, 2011 at 1:12 am

Yep – quick “wins” are what most people go for.

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5 Mike September 5, 2011 at 4:40 pm

I admit my guilt on point number 1 – shopping for convenience. However, my family has got much better at this by doing all of our grocery shopping ahead of time instead of every day right before dinner we are saving alot. Great tips!

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6 Heidi September 6, 2011 at 10:54 pm

Thanks Mike, and I know what you mean! Sometimes the convenience is worth it to me, but I do try to keep it at a minimum.

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