Personal Finance Series #7: Stop Wasting Money!

Hi there,

In order to save up and invest to achieve financial independence, we need to have smart spending habits. That is easier said than done for many of us. If we are more mindful of how we spend our money, the savings will add up. Key is to stop the waste, and here are 10 items that need our careful attention.

1. In-App Purchases: Most of us have smartphones, right? And what do we do with them: download and use apps! Well, many of these are free to download initially, but have 'in-app purchase' features. Beware! Whether these apps are games where you can purchase in-game tokens or functional apps that unlock new features, it is so easy to make these purchases using the smartphone. First ask yourself, "do I really need to make this purchase so that I can upgrade my barbarian king in Clash of Clans so I can crush the opposing army?"

2. Morning Coffee: before you buy that Starbucks coffee next time, ask yourself if you really need to shell out $6.00 a day for the Espresso Macchiato? There are healthier ways to get your energy level up, but if you really need a cup of coffee, you can make one at home in the morning for a fraction of the cost.

3. Buying New Books: are you sometimes tempted to buy that latest New York Times bestseller at Barnes and Nobles? Resist the temptation! You will pay top dollar for a book that will probably be available at the public library in a few months. If you have to buy one, look for a used copy on Amazon/Ebay or an e-book version (which is usually cheaper).

4. Credit Card Payments: as I mentioned in previous posts, credit cards are the enemy to personal finance. These pieces of plastic can ruin your savings and investment plan by robbing you with exorbitant interest rates and late fees. My advice is simple: pay it off in full each month. Making a minimum payment is not the answer, as it would take years to pay off, along with ridiculous interest payments that have zero tax benefits. Better yet, use cash or debit cards so that you can only spend what you have!

5. High-Fee Investment Funds: again I mentioned this in my previous posts, but investment funds (such as mutual funds) with high expense ratios will eat into your returns, and will add up over time. Also, many studies suggest that low-cost passively managed funds (like stock market ETFs) provide better returns than high-cost actively managed funds. When giving investment advice to Lebron James, Warren Buffett suggested low-cost index funds for a reason! Listen to the 'Oracle of Omaha'...

6. A Large SUV: if you commute to work alone in your gigantic Chevy Suburban, think again. That gas-guzzling beast will set you back at the gas station time and time again (not to mention higher insurance premiums). Consider a smaller car that will give you better gas mileage; better yet, car pool if that is an option.

7. Talking of gas mileage... if you have heavy stuff in the trunk of your car all the time, don't just haul it around town for no reason. The heavier the vehicle, the more gas it will require to move the car. Lighten the load and save some money!

8. Vending Machines: sometimes we all need a little pick-me-up to get our energy levels up. But to get one at the vending machine is over-paying. With a little advance planning, we can buy the snacks in bulk at a Sam's Club or Costco at huge discounts. Every penny saved is every penny earned!

9. Ordering a Drink with your Meal: when we eat out, we usually order a drink with the meal; but is that the right financial decision? A drink can easily add $2-4 dollars for each meal, and it probably isn't very healthy for you. Asking for water will save money and be a healthier option.

10. Disposable products: I know that disposable cups and dishes can be convenient. But you can save some money by using glassware at home instead (not to mention going green and preserving the environment). This tip goes for all disposables, such as using cloth napkins and rags rather than paper towels.

I hope you found this article helpful. Which one(s) did you like the most as potential money-savers? I am curious to find out so please reply and let us share our stories. Thanks for reading!

If you liked this article, check out my previous posts below:

Personal Finance Series #6: Retirement Planning

Personal Finance Series #5: How to Get a Pay Raise

Personal Finance Series #4: Investment Advice - Part Two

Personal Finance Series #3: Investment Advice from Warren Buffett

Personal Finance Series #2: Top Money-Saving Tips

If you are also interested in learning more about taxes, check out my tax series below:

Tax Series #12: Itemized Deductions - Deep Dive

Tax Series #11: Beware of Tax Identity Theft

Tax Series #10: Child Tax Credit

About the Author : I am a cryptocurrency enthusiast and a U.S. Certified Public Accountant with over 15 years of experience in accounting, taxation, and finance.

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If you like this series, please follow me @qwesttexas. I am here to help the Steemit community with personal finance and tax questions, and break it down into simple steps so anyone can benefit from it. Steem On!