According to a recent survey, some Americans believe that they waste $140 on unnecessary items or purchases. That is almost $1,700 annually being lit on fire for unnecessary things. What is the best way to prevent money leaks in our lives?
Preventing Money Leaks
Many people waste money without thinking about it or even realizing it. When we eat take out, buy 500-channel subscription packages, or buy things we don’t need, we are wasting money.
Or causing money leaks in the figurative vault of personal finances.
Here are some ideas on how to stop those money leaks.
Get a Cheaper Cell Phone Plan
How often do you use your cell phone? Do you use it to talk or access the internet? You may be paying more for data plans over multiple lines via family plans than for basic communication.
The average monthly cell phone bill ranges from $55 to $180, depending on how many lines you have.
Stop money leaks with a cheaper cell phone plan. Conduct a household survey and find out exactly what people use their cell phones for when they use them.
That way, you won’t waste money on extraneous data plans or plan accessories you don’t need.
Don’t just take it for granted that you are paying for a cell phone that you need or works for you. Investigate your plan and think about what you need.
Mitigate Utility Bills
In 2018, the average energy bill was $117 a month. That means that you are paying over $1,404 annually for your energy bill.
If you want to stop money leaks in your life, there are many ways you can shave a few hundred dollars annually off of your energy bill.
Turn off appliances and lights when not in use. Besides vital appliances like the fridge, unplug appliances you don’t use. Many unused but plugged in appliances draw electricity as energy zombies.
Turn on your air conditioner for a few hours, turn it off, and keep your doors closed as much as possible. It will be easier on your wallet to concentrate cold air in a room for several hours than to leave the air conditioner on for 5+ hours or all night long.
You may be able to save almost $3,300 on energy bills by switching to strict use of LED light bulbs.
Make sure your home and windows is properly insulated to cut down on heating bills.
Turn off the faucet when you are brushing your teeth or washing the dishes. Conserve water as many ways as you can to cut down the water bill.
Work Out at Home
The average monthly gym membership costs to 5.
Your gym membership might be costing you $720 to $1,620 annually. This is a serious money leak and that kind of money can find a better home in your savings account.
Oddly, most people sign up for gym membership then show up once or twice or never show up.
Since many members signup via debit, gym owners automatically charge members every month.
And since many people procrastinate and convince themselves they will go to the gym next month, gym owners make a lot of money automatically charging members who never show up.
This is an especially goofy way to waste money.
You can work out at home with the aid of YouTube exercise videos.
There are many YouTube channels dedicated to helping people turn their homes into personal gyms with the need for expensive equipment.
Buy Generic and Use Coupons
Did you know that you could save over “,000 on your annual food bill by buying generic brands?
I love Pepsi and Coke as much as the next person, but the generic brands virtually taste the same. Advertising campaigns convince us that we need brand name products.
In reality, you are paying for the brand name, not the product.
Buy generic brands whenever you shop. You should buy generic brand medications, clothing, and products whenever possible.
Use coupons whenever possible when you shop. In the 21st century, you can use digital coupons and don’t have to worry so much about carrying hundreds of coupon slips.
Buying generic whenever possible and using coupons is a great way to plug money leaks.
Stop Buying Plastic Water Bottles
Every person in your household is paying over $100 annually on bottled water. Talk about a literal money leak!
Buy a water filter and invest in reusable bottles. You are also doing your part to save the environment when you stop buying plastic water bottles.
Money Leaks
These are just examples of various money leaks you can contain in your life.
Examine your personal household budget and determine what expenses in your life can be excised or cut back.
Or, another good option is to use a cash back site – for example, I like Dollar Dig. It’s got deals on about 4,000 individual stores, for example they’ve got discounts for Mygemma and Walmart.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.