It’s easy to quickly burn through money, especially when your last pay check is sitting in your wallet. And despite the many benefits of debit cards, they do make it exceptionally easy to spend money. However there are plenty of things you may be spending money on you simply don’t have to – the key is knowing where you’re making mistakes. There are plenty of ways you can stop wasting cash, and start saving it instead. Here’s our advice on how you can make small changes in your everyday life, and start to see some big changes to your bank balance.
Purchasing brand-name products
The big supermarkets have been stocking their own home brands for years now, so why are you still paying for brand name products? Go generic whenever you can! There is very little difference between a home brand tin of diced tomatoes for 75c, and a brand tin for upwards of $2.50. While that saving may seem small, add it up over a year of spending and you’ll see a huge difference.
Of course, that’s not to say don’t ever buy brand names. If there’s a product you particularly care like, by all means, purchase the brand. But for all other things, try to find the cheapest option. Often, this is the generic one. Buying food, especially cooking ingredients, is the perfect place to cut some costs.
Buying excess groceries
Often we buy much more than we can consume. And when it comes to perishable goods, there’s absolutely no point in buying more than you can eat. Because when something spoils, that’s money going straight in the bin. Stock up on non-perishable goods when you can, or when they’re on sale. But when it comes to fruit, vegetables, bread and meat, think carefully about what you can manage to actually eat. People often get caught up in buying in bulk, thinking it will be cheaper in the end. While this may be the case, it’s only cheaper if you actually use the things you’re buying. If not, you’ve wasted your hard-earned money.
Eating out
Excessively eating out is definitely burning a hole in your pocket. Compare the amount you’ll pay for dinner at home to the amount you’ll pay in a restaurant, or takeaway. The price difference will shock you! Cook whenever you can, and if possible, take lunch to work, whether it’s leftovers or something you make at home in the morning. You can even take the ingredients to work for your lunch and make it there. It’s also a great idea to cook in bulk over the weekend and freeze meals. Then, if you’re stuck for a meal during the week, you can simply defrost something, rather than reach for the takeaway menu.
Impulse buying
Supermarkets and department stores purposely load the checkouts and exits with products to tempt you. This leads to to those purchases you regret the moment you get home, and end up getting either throw away or hidden in a drawer. It takes a lot of self-control to ignore these ‘tempting’ items, but it’s truly worth it. Remember, they’re just a waste of money.
Your morning coffee
It sounds blasphemous, but giving up your morning coffee run will save you a considerable amount of money. If you buy one coffee a day for $4, that adds up to $28 a week, or $1460 a year. That’s a lot of cash! Consider making your coffee at home, or investing in a coffee machine. While the upfront cost may be significant, you’ll save money in the long run. And that $1460 can go into the bank for something more important.
Paying unnecessary fees
The bills do pile up, and while it can be tempting to ignore one or two every now and then, over time the interest will stack up. For example, if you miss a credit card payment by even a day, you may be liable for a late fee. And on top of that, any longer and you’ll pay interest on the amount still outstanding. You may also be paying ATM fees. Many banks now slog you with a $2 (minimum) fee if you use an ATM not belonging to your own bank. Try to find your own bank’s ATM, and stop throwing away your money. While $2 may seem like a small amount, if you’re doing it every time you withdraw cash you’re wasting your hard earned cash.
Wasting money on electricity
Turning your powerpoints off when you’re not using a particular appliance can save you a lot of cash. Or alternatively, there are plenty of electronics you can buy to help you pull the plug. Consider a universal remote that turns everything related to your television off when not in use. You can also buy power boards which stop drawing electricity from gadgets when they’re turned off. Like buying a coffee machine, while there may be a bigger outlay at the beginning, you’ll see the savings in time.
