3 Ways People Waste Money and How to Avoid This

There are many different ways, if not endless ways to spend money in the world today. From simple fast food to buying private islands, as the old saying goes, everything has a price. Now, when people become serious about making a budget they begin eliminating different aspects of their life that they no longer need. However, even after removing the different money draining activities from your budget, you can become leaner with your spending. Below are three different ways that you can improve your budget by being more aware of your spending.

Grocery Shopping

So you’ve set aside funds in your budget for food, and that’s fantastic! But now, people fail to take these funds and maximize their ability, limiting the power of their dollar. An example is bottled water, which is probably the largest waste of money in the grocery store. Something you can obtain from your tap for little money, eliminate the bottled waters to save money. Instead, purchase a water filter if you prefer purified drinking water, that way it’s a one time upfront cost with little maintenance throughout the life of the filter. A few other areas are over spending on paper plates and paper towels, which all end up in the trash anyways.

Brands

This is an easy one but many people are so brand loyal they will do anything to get the name brand product. When it comes to food shopping, clothing, and even medicine, purchasing the store brand can save you money. Within your clothing budget, shop for the store brand instead of Nike or Adidas, as this will maximize your spending power. Medicine is a very popular category many people over spend on, even if it is something as simple as Aspirin. In a store such as Walgreens, compare the store brand with the name brand and ensure the active ingredients are the same. If that is the cause, you are probably going to see similar results using either product.

Leisure

In your budget, there may be a line for leisure and that is perfectly acceptable. Now, this is a space where people can really waste money on unnecessary items. First, save money by drinking at home because drinks can certainly add up when they cost $10 at a restaurant. Secondly, a tool that is underused in my opinion is Groupon, which is a company that will sell different things at discount. Example, if you have skydiving and it normally costs $50, Groupon might be selling a skydiving session for $35. Within your leisure category, be sure to maximize your dollar by capitalizing on these deals.

I hope this helped guide you in a direction to maximize every dollar in your budget. It’s one thing to have a budget and stop waiting all of your money, but it’s another thing to go through to budget and really stop wasting money on items such as bottled water and the name brand paper plates. All it takes is a behavior shift to stop wasting funds and get serious on eliminating debt.

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