If you are looking for a list of ways to waste money, then you have come to the right place. This list will help you avoid mistakes that other people have made and save some money in the process.
We all have our personal goals and aspirations in life. Some people want to buy their dream home, others want to travel the world and others just want to be able to afford a nice brunch every day. But firstly, living is not free, which is why we always need to consider our spending habits. We don't need a special occasion or a reason for it; there are just too many things we can spend our money on that won't get us any closer to achieving our goals or aspirations.
As consumers, we are often bombarded with offers and deals that sound too good to resist. Sometimes we buy something because it’s on sale or because of the salesperson's pitch but in the end, those products are some of the worst things you could buy. The list below are some of the things we waste money on.
1. Buying a new car.
2. Start a new hobby.
3. Eating out for lunch in an expensive restaurant every day.
4. Buying expensive TV.
5. Splurging on luxury items.
6. Buying expensive clothes.
7. Fighting with your wife
8. Splurging on the newest iPhone.
9. Trying to achieve a perfect body.
10. Building a bigger house than you need today.
1. Buy a New Car
We all know that cars are expensive, but how expensive? The average cost of a car is $30,000 which amounts to $600 in monthly payments. Most people take a car loan and you will need to pay off the loan for the car and the finance charges will accumulate over time. If you are buying a new car, you will also need to cover insurance and regular maintenance costs for the vehicle. As much as it seems glamorous, think twice about your decision before spending your money on a new car. You can buy a fairly new car which means you need to pay for the insurance cover and other maintenance.
2. Start a New Hobby
This is another great way to invest in yourself and develop your skillset, but starting up any hobby requires significant time and investment of money and resources. Think about whether or not you would be able to commit these resources before you start.
3. Ignoring your debt
In most cases, debt should not exceed 30% of one's income, but many people have debt that exceeds 50%. They might think that the extra interest they are paying will be worth it. They may not be able to afford to pay their debt and this can cause them to become overwhelmed and can even lead to them losing their job. If they have a debt load that is more than 30%, it's a good idea to discuss how you would like to deal with your debts.
4. Buying expensive TV
It may be tempting to buy this expensive television that has all the bells and whistles but in reality, most people only use their television for watching movies or a few series so there is no need for such an expensive purchase.
5 Splurging on luxury items.
Luxury items such as Gucci wallet can cost up to $895! There are plenty of other wallets out there that are just as perfect and cheap as well. Why waste money buying expensive items that don't add value to your life in the real sense. Such money can channel for other many things in your life.
6. Buying expensive clothes
This is another perfect way to waste money. Wearing expensive clothes can make us feel better momentarily but who knows how we live at home. No matter how expensive a particular piece of clothing may be, it will certainly be worn out, the same thing with a less costly type. Buying too many expensive clothes is only a waste of your money, you can end up not using them for more than three months due to weight gain or losses.
7. Fighting with your wife
You probably might be thinking how does fighting with a wife make someone waste money, right?
Domestic violence has lead to a lot of financial losses through litigation and hospital bills. The same guy that beat and injured his wife will still have to pay to treat the injuries inflicted on the woman. In most cases, the woman can sue the man in a law Court and made him pay for the damages done to her body.
8. Splurging on the newest iPhone.
Why will still be using an Android phone when others are using iPhone? You can afford it right?
This is another way of wasting your money. Having a new phone comes with additional expenses and when you think about iPhone the cost is four times higher than an Android phone. Moreover, new phone products come out all the time, the one you think is the best today soon become obsolete.
9. Trying to achieve a perfect body.
Money that is spent going to the gym is as best wasted when you could as well achieve the objective by eating simply nutritious meals regularly. Most people spent so much money trying to achieve a perfect body to gain an appealing public status.
Cosmetic surgery or plastic surgery to change the way you look, boom, and breast enlargement are all a few other ways people waste their money.
10. Building a bigger house than you need today.
How large is your family? That will be a determinant of the size of the house that should be built. Most people build a house with many rooms they will never live in. It's a waste of your money building a house you want to live in with many rooms you will not need.
Having a big mansion looks very appealing but in the end, it is all a waste of money. Soon, when you grow older, your children will not be living in the house, and they may never have to come back there all their lives. Those extra rooms are wasted. You could build a small house and use the extra money to build another one for rental purposes. This will be a lifetime investment that will keep paying you all the days of your life.
You should never spend money on those ten things discussed above. People often regret spending their money on certain things. Whether it's a bad decision or just a waste of money, avoid spending your money in those 10 terrible ways.
How to recover from bad financial decisions
If you do find yourself making bad financial decisions, it doesn't mean you are doomed to regret it. You can always change your mind about spending your time and money however you see fit. It's okay to just say no to something. A great way is to do what I did and just not spend a lot of money on something you didn't need or wanted. I've also seen people spending more than they need on things they don't really want or need, but that's not a big deal. Just keep that thought in mind. Remember, when it comes to your financial life, no one will care about your spending or your decisions. The important thing is that when you make a decision you think it through.
1. Set a monthly saving target
Save up to $100 per month and invest your saved cash in an asset that can provide additional income streams. For example, if you have $50 saved up, invest $20 in a saving platform with a lending interest on your savings, and then invest the remaining $30 of that money in investments that provide greater income potential. Don't put all your money in one investment medium.
2. Put your finances in order.
This means making a list of all of those things that are important to you in your life. From your mortgage to groceries to clothing, etc. Prioritize your needs on the order of most important, and try as much as possible to reduce your budget for the most expensive things.
3. Make a plan for your future.
Take time off to make a concrete plan for your future. know what type of life you desire and how to get it. Take a piece of paper, write down some descriptions of Set words that reflect the future you desire. Pick out the first word on your list that reflects what type of person you want your story to convey. Let that be the mirror of your life, and work towards becoming what you see in your mirror every day.
4. Get realistic about what will happen in the future (or what kind of financial situation you expect to have).
If it sounds too good to believe, then it probably will be. Approaching your first financial goal to increase your wealth might feel scary at first. But once you start putting money away in savings, the more comfortable you feel, your confidence level will increase and your self-esteem will also increase.
Many people that have been in this lifestyle feel that getting the ball rolling with this is just the beginning. Once you've started saving money it can feel overwhelming, especially when there are so many different avenues to start saving. There is no wrong way, just many options and you should start by saving up as much as you possibly can.
Approaching my first Financial Goal to increase my wealth, seems scary and overwhelming at the beginning. But when I start to put money into savings I feel so much more confident in my financial future and self-esteem. The more I put into my savings the greater my confidence becomes.
5. Know your Frugality
If you've been earning money for a while, chances are you know the phrase "savings and spend less". This is an old but very effective way of living that has evolved over the years. It involves setting aside money at least 30% of every paycheck so you know that it will continue to go to something useful when that time comes. Now that I have a goal to reach, I set aside more and more money to make sure I reach the goal. This is why it would be best to set a dollar amount you would like to become wealthy by periodically. For that, I would recommend setting a target of $5,000 a year saving. This is a minimum amount that can be achieved without denying yourself much of your needs. That's a number that I set and that was my main goal in mind when I started saving. If I do that consistently for three years, my financial freedom is sure.
I've heard so often that people just need a little bit extra to reach their goal or their financial goals. And that is often true. Most people are looking for that extra boost to make their dreams come true and to feel that much better about themselves. It is important to be realistic in this respect because it can feel overwhelming to come to a point where we are spending so little of our money but nothing is going back into our savings. This is something that most people will want in the long run to have so they can start feeling more comfortable in their own financial lives.
I loved reading this as it started with your common reasons of wasted money and them followed by effective ways to regain financial stability. I will take these tips in mind and have it saved so I could always read back. Thanks a lot, Sir. :)