Now is the time that many of us are tightening our budgets due to the current state of the economy. Think about all the extra money that you could possibly have if you could do without certain expenses that really weren’t that important to begin with. Therefore, here is how to stop wasting money on incidentals without suffering to keep more of it in your pocket.
Extended warranties are one-trap that many people fall into when buying a larger purchase such as a car or appliance. Though the idea of added protection for an appliance or some expensive gadget for instance may provide peace of mind, but companies usually warrant them for the number of years that they expect the product will perform without problems. This is why sales people strongly encourage them and push an extended warranty or mst (multiple SKU transaction) to pad the company’s bottom line.
Instead, it is often a cheaper solution to just self-insure. Try taking that amount it would have cost you to buy that extended warranty and place that sum of money in the bank. You won’t get help from the interest, but at least you’ll have some money to help with the repair.
Another problem with extended warranties for something like appliances is the pain of solving the fix later. You often don’t deal directly with the company and need to go through a third party. This can be frustrating trying to connect while waiting for the right contact once you begin the process. As you might guess, I am not a fan of extended warranties. Of course, you may feel differently.
Gym fees are another area that you could save money on. I am not saying to give up your gym membership. However, instead of committing yourself for a few years at a time because it is a top notch facility with all the best equipment, you might want to find one that puts less pressure on you about a contract and lets you pay by the month. This way is how to stop wasting money when you don’t feel like going or you simply have no free time when other things come up.
Credit cards are important with the convenience that they offer. Yet, they also can be problematic when thought of as free money that can be pulled out whenever the heart desires a purchase. In turn, this could result in huge monthly bills if not paid promptly from the added interest tacked on the purchase each month.
Something that you want to consider is to carry fewer credit cards so you don’t get carried away. If you can’t resist pulling out that piece of plastic, then maybe carrying a set amount of cash is a safer alternative to control your spending. At least, you’ll know where your money is better going without worrying about mounting interest that can overshadow those original purchases over time.
Something else that I never understood is the need for vanity license plates. Depending on your state, the fee could be just $5 to $50. You may think so what? Though the fee may be small, there are a lot of better uses for money when you’re trying to limit your incidental expenses.
These are just a few ways about how to stop wasting money without suffering when you think about it. You also may find it helpful to read my earlier post on 10 splurges to avoid when money is tight.