Do you ever wonder where you spent all that
money? Every year, people resolve to get out of
debt, save for retirement and change their
overall finances. When they receive their W-2s
and get ready to file their taxes, they ask
"What do I have left of all that income?" Where
did it all go?
For most people, money simply seems to drip
away in small amounts. Twenty hear and there
seems to add up. You protest and say that you
aren't spending any extra money, but yet it is
all gone in a short amount of time. Your
expenses seem to be reasonable.
Are you wasting
money?
However, we all waste money on a daily basis.
And we don't even have to think about it. Take
a good hard look at what you are really
spending and see where you are spending your
money without any thought. These are where your
money leaks are. Once you know what habits are
costing you money, you can take steps to fix
them and start working on your resolutions.
There are so many things that we say that we
simply can't live without. Most of these items
are designed to make life easier, but do they
really? In fact, most of them just cost us
money. Is your high-tech lifestyle saving you
time? Take a hard look at the fees and charges
you are paying. For example, look at your
telephone bill. Have you ever used the call
forwarding feature? Why are you paying for
something you never use? Are you paying $15
extra for a faster internet connection when it
really isn't any faster? Look at what you can
and can't live without. Chances are that you
will get along just fine without all the
extras.
Package deals - good or
bad?
And don't believe that package deals are better
buys. For example, you could get a phone
package for $49.95 a month that gives you
unlimited long distance, all of the basics and
plenty of extras. However, are you really using
it? With all of the taxes and FCC charges, you
will be paying closer to $70 or $80 a month for
that package. It may cost you less to break up
the package and only pay for the features you
need. If you don't use your long distance very
often, you don't need to pay for unlimited
minutes. The same applies for cellular phones.
Don't pay for minutes you never use.
Only pay what you
owe
Too many people simply accept what they are
charged, no matter if it is correct or not. Now
I know that talking to customer service can
make you want to pull your hair out, but you
shouldn't pay any more than is actually due on
your accounts. The main places I find billing
errors is in telephone and cellular bills. Even
if it is only $10, you shouldn't pay more than
you really owe. Get on the phone and have the
error fixed before you pay the bill.
Let's do a silent vote. How many of you have
signed up for a membership that you have never
taken advantage of? Think of gym memberships
that you don't cancel for months after signing
up and never going. Think of the credit watch
programs, credit insurance and access fees for
websites. If you aren't using it, don't pay for
it.
Have you ever considered how you shop? Shopping
on sale can actually cost you more money. If
you are buying things on sale that you never
use or food that you never eat, you are wasting
money on the delusion that you are actually
saving. Only buy what you are going to use. For
example, why upgrade your value menu meal to
extra large gulp size if you aren't going to
eat the fries or drink all of the soda? You are
wasting more than you are saving.
The whole idea of mindless spending comes down
to the fact that you aren't paying attention to
where your money is going. You have to train
yourself to think about every financial
decision you are making. You won't see it
happening immediately, but over time you will
see your finances changing for the better.
Think before you spend and always look for the
way to spend a little less for what you
need.
Martin Lukac
Martin Lukac represents RateTake.com Mortgage
mortgage marketplace. RateTake matches
consumers with multiple lenders offering low
mortgage rates from our network of accredited
lenders.
