How do you waste your money? We all do it, sometimes in obvious ways, and sometimes in not-so-obvious ways. There are even some wasteful spending habits people do on autopilot; they don’t even know how damaging it is for their bottom line. Here are six examples of things people waste money on and don’t even realize it.
Subscription Services
This one comes first, even though we’re all thinking about how much we spend on subscriptions. It makes the list because you’ll spend on these services passively: by the time the money’s gone, it could be an entire month (and another withdrawal) before you remember to cancel it. These companies want this — that’s why they offer free trials that automatically go into the full service once it’s up.
High-Interest Credit Card Debt
Credit card debt is so normalized that most people don’t bat an eye at those sky-high interest rates. But high-interest cards become a vicious cycle of you paying the minimum payment and the credit card companies profiting off you treading water. Make a plan to pay off your credit card debt ASAP so you aren’t shackled to these absurd APRs.
Lottery Tickets
This one’s peculiar because it’s not something everyone does, but it certainly qualified as a waste of money. Here’s the truth: there’s virtually no chance that you have the winning ticket. This doesn’t mean you can’t buy one here and there for fun. But if it’s something you find yourself doing all the time in hopes of paying off your student loan debt, you need to step out of the darkness and into the light.
Leaving Lights On
Before you “okay, boomer,” me into oblivion, did you ever consider that your parents or grandparents had a point? You shouldn’t be leaving lights on when you aren’t in a room. It is a waste of electricity, even if that seems like an eye-roll-inducing thing to say. Just remember to flip a switch when you leave a room, or better yet, put your lights on timers and let them remember to do it for you.
Wasting Food
Food waste is an enormous problem that goes well beyond the sad, slumping kale in your crisper. The average American family throws away hundreds of dollars’ worth of food each year. Sure, you have good intentions, and you want to use that food. But unless you have a plan for it, you’re just going to toss it in the trash again, and the cycle of waste and guilt will continue indefinitely.
Upgrading Your Phone Every Year
You don’t need a phone every year. You want a phone every year. And truthfully, if it matters to you, it’s in your budget, and you save up for it, I’m not going to tell you what to spend your money on. But so many people upgrade without considering whether it’s worthwhile for them. Don’t give in to the pressure to have the latest and greatest tech when you have something that works just fine.
