Of course you are wasting your money, or at least some of it.
Most people will find that they are wasting money if they take the time to look what they spend money on.
It may not be that you literally flush your money down the toilet – but there are plenty of ways that we waste money which also means there are plenty of opportunities to save money.
I like to re-evaluate our expenses every couple of months to make sure we’re getting the most value from the money that we spend.
We know that things change over time, and therefore how we choose to spend our money will change over time too. Sometimes we need to review our monthly expenses and check what we are spending money on which will typically free up funds for us to reallocate to paying off debt or spending on other things where we will get a bigger benefit or enjoyment.
I recently read an article on a blog names “The Enemy of Debt” and while I like the concept of the blog, I also enjoyed reading some of the articles that they share on the blog.
Let’s look at some of those expenses that many of us have and ask ourselves if we really need to be spending this money, or if you are really just wasting your money on things that you can do without or where there are alternative ways to get similar results.
Here Are 3 Expenses To Review
As mortgage brokers we see what people spend their money on and these are three expenses that I would question people about – especially if they are struggling financially or trying to save money. Many first home buyers say they find it hard to save for their deposit, but some of the spending choices could be a lot better and that would make saving a lot easier.
Here are 3 expenses that you could review today.
1: Home Phone Lines
Who really needs a home phone line now?
Of course most people still have a home phone and may think it is a necessity however with most of us having a mobile phone these days we receive very few calls on a home phone. Many of us have a home line as part of a package with the company providing our telecommunications and our internet connection.
We personally use a company called 2Talk rather than Spark or Vodafone and we find them good.
2: Gym Membership
How many people pay for a gym membership but are not going to the gym?
Joining a gym seems like a sensible and healthy thing to do, but many of the people that operate gyms will tell you that most members do not visit the gym very often and that is how they make money.
There are other ways to exercise that are free – going for a walk or run and doing exercises at home or in the park.
You also do not need the “trendy” Lycra outfits.
3: Sky Television, Netflix & Lightbox
The way we watch television is changing and now we have more choice and generally at a lower cost.
Moniter what you watch and look at what you could change.
A lot of people are paying for Sky TV and they might be better off with Netflix or Lightbox.
Just Do It…
Have you gone through all your monthly expenses recently?
It is an interesting exercise and you might be surprised to see what you are wasting your money on.
These are just three areas that you could look at to start with but if you are serious about saving money then you may wish to review all of your spending and even create a budget so you can monitor things.
As a mortgage broker or adviser I recommend that people are smart with budgeting and use PocketSmith which is an online system that sync’s with your bank accounts taking the manual data-entry out of this. You can upload your past 3-months statements and code the expenses to see what you have been spending and wasting money on, then set mini-budgets to target certain areas of expenditure. CLICK HERE and get PocketSmith for free.
What are you wasting your money on?