Having more money at the end of the month is always nice. There are many ways to save money in our day to day lives. One of the simplest ways to save more money is to stop wasting money on things that you don’t even realise are draining your accounts.
Too reach your financial goals, you just need to make some small changes to your day to day spending. Then ultimately you will have a little more money to put towards whats really important.
We used to live paycheck to paycheck before we made an in depth budget and realised there where so many unnecessary things we where paying for month on month that we really did not need. Here is our list of the 9 ways your wasting money and not even knowing it!
1. Food & drink
Food and drink comes in as one of the more expensive parts of anyone budgets. Eating out and buying drinks while out and about soon adds when you add it all up over a month. When you take into account your regular weekly food shop as well the costs are even higher! Stocking your kitchen with all the basic ingredients you need will help you cook delicious food at a fraction of the cost.
Solution to wasting money on food & drink
The best way to lower your food and drink costs is the bring your own! we bought some good quality food containers, drinking bottles and thermoses so we can take quality home cooked food and any beverage of our choice to work, days out or just about anywhere we may go. It has helped is stop wasting so much money and we tend to eat healthier to!#
2. Your regular supermarket
If you do your regular weekly shop in a large supermarket chain, you may be shocked with the prices compared to discount grocery shops. When we compared the prices of Tesco (our regular store) with a discount store like lidl (our new regular store) the price difference was crazy! Saving on average £20 per week, averaging £1040 per year.
Solution to wasting money on expensive supermarkets
Switch where you do your shopping, In the UK Lidl, Aldi come in as the cheapest UK supermarkets. To make your shopping basket even cheaper you can consider buying some of your items in shops like Iceland, Heron, and Farm foods which are even cheaper but come with less availability.
3. Cable TV
For a lot of people, cable TV is a everyday part of their life. But cable TV is really a waste of money. Its overpriced, has a lot of repeated shows and cheaper subscription based services such as Netflix and amazon prime come in as a much better value for money option.
Solution to saving money on cable TV
If you really want cable TV, consider switching between the major provider for new customer deals witch will lower the cable price considerably. But for much better cost cutting just go ahead and cancel your cable subscription. If you enjoy TV then of course go with a streaming based service like Netflix that offers great content for a very good price compared to cable TV providers.
Your utility bills such as electric, gas and water may be putting a dent in your bank balance! high usage of these utilities come with higher costs. Over a year they add up to a large waste of money.
Solution to lowering your utility bills
Lowering your utility bills is just a matter of using less. Making sure you unplug your electronics when not in use, shower rather than bath, lowering the thermostat, using your dishwasher when it is full only and switching off the lights when not in use are ways you can lower your utility bills considerably.
5. Interest payments
Taking on high interest debt such as credit cards and car finance, then not paying them down quickly is a sure fire way to waste a lot of money! Only paying the minimum on your loans and credit cards is a good way to lose money you could spend on much better things.
Solution to wasting money on interest payments
If you cannot afford the item without finance or high interest loans, it is probably a sign you should not purchase it in the first place. if you use plastic, always remember to pay any credit card balance in full every month. If you are already in high interest debt you want to make sure you are paying more than your minimum repayments to mitigate interest payments.
6. Extended warranties
When we buy them high ticket items they often come with extended warranty options. Reports find that most people do not actually use them and they are not exactly cheap to purchase either.
Solution to wasting money on warranties
Look after your nice stuff more, since not many people actually use extended warranties you are monetarily better off not purchasing them in the first place, saving you money overall. and often common repairs are cheaper than said warranties themselves.
7. Banking charges
Paying banks money just to have your cash is a total waste of money. But there are other ways banks sting you for a little extra on the side, ATM fees, overdraft fees, high charges for investments and low interest rates on your savings are also something to be aware of.
Solution to losing money to bank charges
Just like insurance companies it doesn’t pay to be loyal, if your banks terms have changed and costs you more consider switching all together. Make sure you have enough cash to dodge ATM fees and always make sure you have enough money deposited to avoid overdraft charges and any interest incurred. If you have money invested make sure your charges are in line with the rest of the banks and if not maybe move your investments to some place more effective.
Home insurance, life insurance, health insurance, vehicle insurance. the list is endless and so are the costs involved! The majority of people are paying through the nose for insurance costs. But you will also find you can normally get a better deal! and if you can get it cheaper else ware why waste the money?
Solution to overspending on insurance
When your insurance is due for renewal dont just accept there annual price renewal. Consider switching for big savings, your current provider wont give you new customer discounts but many of the others would love too! Also check weather your coverage is what you require and not over inflated. do you really drive 20000 miles a year for instance? if not let them know for even more cost savings.
9. Brand names
Brands are everywhere, anywhere you shop big brands are advertised heavily. The cost of big brand items are often heavily inflated compared to their non branded counterparts. From food to health products you will find non branded items much cheaper and of very similar quality.
Solution to not wasting money on branded items
Since non branded items often come with very similar quality standards at a much lower cost, you are in most cases much better off going the non branded rout. The only difference with a lot of products are the packaging they are presented in. If packaging and marketing campaigns add over 100% to the cost of an item you may as well go elsewhere.
Many of the items listed are some of the ways you may waste money, using these solutions to cut the costs and save more money is a means for you to reach your financial goals.
As always live more by spending less!