Are you constantly opening your banking app wondering where all your money’s going? Here are seven spending habits that are making it impossible for you to put money aside and forcing you to dip into your savings.
Impulse Purchases
Whether it’s a coffee on the way to work or an impromptu online shopping spree, these small expenses can significantly impact your bottom line. They feel harmless, even enjoyable at the time. But when the day comes to balance your budget, you’re tearing your hair out, trying to figure out how to make your necessary expenditures by the end of the month.
Employ a “cooling off” period before buying things, particularly if they’re large purchases, and you’ll find that you probably don’t even remember why you wanted to buy the thing in the first place.
Too Many Subscriptions
It’s easy to fall into the trap of the subscription model. It seems much more affordable and simple — until you tally them all up and realize you spend hundreds of dollars a month on services you barely use. Remember to review your recurring payments and cut the ones that aren’t adding value to your life.
Eating Out All the Time
Dining out should be a treat, not a staple. It can be a treat you budget for, and you could even dine out every day if you actually have space in your budget for it. But chances are you don’t, and it’s impacting your ability to save. Cook at home more often, especially for meals that are either simple to make or you can make ahead of time.
Not Tracking Your Expenses
Many people won’t even open their banking apps for fear of what they might find, let alone track their individual expenses with any regularity. Don’t fall into this trap: knowing where your money goes is key to ensuring it’s going into the appropriate channels. Budget for everything and suddenly it’s much easier to identify problem areas in your spending.
Buying Brand Name Products
Opting for name brands over generic alternatives can lead to shocking levels of unnecessary spending. Consider switching to store brands and see if there’s much of a difference. These are often comparable in quality, highlighting the fact that the extra expense from the brand name is all for show.
Overlooking Discounts or Sales
Everyone loves a good sale, but not enough people dig a bit deeper to find the real deals. You don’t have to become an extreme couponer. But even combing through the week’s grocery deals and building your meal plan around what’s on sale can free up a lot of cash for savings.
Upgrading Too Often
Whether it’s something small like a new pair of headphones or big like a brand-new car, lifestyle inflation is real, and many people fall victim to it without even realizing what’s happening. Holding off on upgrades can help you save for more important financial goals, not to mention teach you that consumerism is designed to convince you to spend, even if you don’t need to — chances are, last year’s phone is still fine.
