Times are hard these days financially, and as a recession gets closer to American families, this would be a good time to rethink our spending habits and make the necessary changes so that we can get through the next few months with confidence. With that said, here are 10 spending habits that are killing your wallet.
1. Subscriptions And Apps You Never Use
If it’s been months since you read the magazines you subscribe to, then it’s better to cancel your subscription. You also want to watch out for free trials you signed up for and keep track of the days that they end so that you won’t be billed every month.
2. Not Setting Boundaries With Loved Ones
There’s nothing wrong with buying things for loved ones and friends, but if you’re not careful, you may allow them to take advantage of you financially. Make sure that you set boundaries when shopping for those around you.
3. Buying Low-Quality And Cheap Items
In your quest to save money on your favorite things, don’t go to the other extreme and purchase items that are of low-quality in order to save money. In some cases, it is better to pay more money for items that will last for years. This actually saves you money in the long run.
4. Purchasing Groceries Unnecessarily
Before you head to the supermarket, take inventory of everything that is in your pantry and write down everything that you currently have. Then write a separate list of pantry items that you need to buy from the store. By doing this, you’re not buying duplicate food staples and wasting money.
5. Paying Credit Card Interest And Late Fees
When you are late on your credit card payments, you accrue more interest and you’ll have to pay late fees. Make sure that you pay your credit card bill in full every month to avoid the interest and fees.
6. Dining Out Frequently
The prices of in-person dining out are costing you hundreds of dollars, but food delivery apps are just as expensive. If you want to curb your spending, cut back on eating out.
7. Taking Advantage of Every Sale
It is possible to be addicted to bargains, and this eats up your finances if you’re not careful. Only buy the things that you need on sale, and this can help you reduce your excess spending.
8. Buying Extra Items To Get Free Shipping
As a way of trying to qualify for free shipping, some people buy things they don’t use or need. Instead, spend only on the things you need to get even if you’ll pay shipping costs.
9. Paying For Conveniences That You Can Do Yourself
While there are some conveniences that are worth the extra money, there are many tasks that you can do yourself that will help you save money. Thanks to blog posts, books, and Youtube, you can DIY different household projects.
10. Partially Paying Bills
One reason why an emergency fund is important is that you’ll have the money needed to pay your bills in full on the due dates. It is a mistake to pay part of your bill and let the remainder spill over into the next billing cycle because it keeps you in long-term debt.
During a recession, you want to keep as much of your money as possible. By avoiding these spending habits, you’ll have more money for savings and investments.