wasting money

8 Money Habits You Should Adopt Now

May 23, 2016 By Amanda Blankenship 1 Comment

You can have the best intentions but, when it comes to saving, even the best of intentions can be swayed by poor money habits. Even if you have the most sophisticated budget in the world, it can be crushed if you don’t change the way you spend your money.

Instead of focusing on the big picture, focus on changing small habits within your financial life. This is the absolute key to making saving easy. By focusing on the little expenses that are leaking money out of your bank account daily, you will notice a big change come the end of the month. Once you find out where you can change, start trying to change your habits. Here are a few you may want to consider changing:

Set up an automatic transfer

This is one of the easiest habits to adopt. Many banks offer an automatic transfer from checking to savings. My bank, Wells Fargo, offers a “Way 2 Save” option. Every time I swipe my debit card, $1 goes into savings. After a while, these $1 deposits add up. In addition to that, every time I get paid 10 percent of my check goes into savings. I simply pretend like the money isn’t there (unless there is an emergency) and it stacks up pretty quickly.

Make up a mantra and stick to it

Pinpoint something within your spending habits or finances that you want to change. Once you have done that, figure out a way to stick to it. For instance, you may have a credit card bill that needs to be paid off, but you spend $10 everyday for lunch. That is an additional $50 you could be putting towards your bill. Write something like “No spending on entertainment until my Visa bill is paid in full” and put it on your wall or make it your background on your phone. This will help remind you of your goals.

Don’t pay for the name

Many people don’t realize how much buying the store brand products can save you. If you compare the prices, you could be saving quite a bit of money to buy the same thing (without the name).

Stop wasting money

This seems like a “duh” point, but really, stop wasting money. This means stop buying things that you don’t need. Don’t play the lottery. Don’t stop and buy a soda at the gas station when you have 20 in your refrigerator at home.

Vow to pay on time

Stop paying late fees and just pay the bill on time. If you avoid late payments, you can save quite a bit of money (late fees are generally $25 or more). By paying your bills on time, your credit should also see an increase.

Use your ATM

Tons of people waste money every month by using the ATM. Though you would think getting your money would be free, many people use out-of-network ATMs, which come with a fee. If you use an out-of-network ATM often, your fees can stack up quickly and that is money you could be saving!

Share your goals

My best friend and I make sure we let one another know when we have a new savings goal. This keeps your friend from asking you to do things that will cost you money and it will also provide someone that will help hold you accountable to the goal you’ve set for yourself.

Make lists

This one is pretty key! Making lists with your savings goals (both short and long term) will help you reach them, but other lists will help you as well. When you go to the store, make a list and commit to it. Both of these lists will help you reach your savings goal in no time (and help you cut down on buying things you don’t really need).

Work on one habit at a time. If you try to focus on more than one habit at once, it won’t likely pan out the way you want it to. Also, it takes about 21 days to completely change a habit. Don’t expect your spending habits (or your bank account) to change overnight, but don’t put off spending any longer either. Make your goals and put your plans into action! Happy saving.

Do you have a savings plan that has worked for you? What habits have you had to change?

Photo: Flickr: Tax Credits

How Not to Play McDonald’s Monopoly 2014

October 6, 2014 By Jeffrey Strain 3 Comments

There are a lot of articles about the best way to play McDonald’s Monopoly, but there aren’t many that tell you how you should absolutely not play the game. There are far too many people who don’t know how to play the game correctly, and not knowing ends up costing them money they should have never wasted.

Collecting Game Pieces

There are a lot of people who like to collect all the common game pieces so that if they happen to find a rare piece, they will have the properties they need to win that particular prize. In order to do this, they are often willing to buy the game pieces off of sites like eBay or Craigslist. Doing this is a complete waste of money, and there is no reason to ever buy property pieces unless you already have the rare piece. Until you have the rare piece in hand, your chances are so minimal of actually winning the prize that it just doesn’t make sense to spend money getting the other property pieces. Once you have the rare piece, however, then it makes sense to get the common pieces to fill in the property monopoly. Since the common pieces are so much more common than the rare pieces, it should be easy to do no matter how late in the game it might be.

An Example of the Wrong Way

There are a number of people who make some decent side income each year when the McDonald’s Monopoly game is played. One of the ways they do this is by selling the common pieces of the game board to those who want to fill theirs in. While this example isn’t typical, it is a true interaction which took place, and a perfect example of how you don’t want to play McDonald’s Monopoly.

The seller listed the 3 common railroad game pieces for auction on eBay. This happened to be early in the game, and there were a few people who bid on the pieces. The three piece set ended up selling for $8, much more than anyone should have paid for them. The bad strategy didn’t end there. The buyer wanted to know if the seller had any more sets of the three common railroads. The seller did and ended up selling 2 additional sets to the buyer for $5 each. In this case, the buyer spent $18 on worthless pieces just in case he happened to find multiples of the rare railroad game piece.

If you’re going to play this game, it’s important to not worry about any of the common pieces until after you have a rare piece in hand. Spending anything on common pieces before this is simply wasting your money. While you should keep any common pieces you get from food you buy (and input the online codes), don’t get caught up in the hype of trying to fill in your board with other common pieces until those pieces are necessary.

You Didn’t Have to Buy That to Have Fun

July 1, 2013 By Jennifer Derrick 6 Comments

We’ve got a several neighbors who have recently splashed out for new golf carts. Why? So they can ride around the neighborhood and just see what’s going on. Note that these purchases were made solely for neighborhood joyriding. We don’t live in a golf community. These people don’t play golf. These people are not mobility-challenged in any way. We don’t live in an area where you can commute to the store in a golf cart. And our neighborhood isn’t that big. (I know from my marathon training days that it’s a two mile loop, or basically one mile across.) It’s a classic case of one person bought a golf cart (the “cool” person in the neighborhood saw people using them at a campground and thought it would be fun to do at home) and the lemmings had to follow.

One day I was working in my flower bed by the road when one of these golf cart lemmings came by. They stopped to chat and show off the new toy. I just nodded when he said, “Yeah, it was expensive and it’ll take a while to pay off, but we really needed a way to get around the neighborhood with the kids and see what people were up to over the summer. And it’s great for taking the kids visiting!” I plastered a big, fake smile on my face and told him I hoped he had fun.

Inside I was thinking, “You can’t walk around the neighborhood? You can’t ride bikes? The kids can’t use their scooters? You had to pay probably north of $5,000 that you obviously can’t afford if you’re talking payments just to get around the neighborhood and have some fun? Dude, there are cheaper ways to have fun and get around.” And this is where people go wrong. They see one person doing something and decide that they have to do it, too.

I don’t know the person who started this neighborhood craze very well, so I don’t know if he could “afford” his cart or not. But I do know three of the lemmings well and I know that they had to put the carts on payments. Now, I don’t begrudge people having fun. By all means, have all the fun you want. But if something is obviously a “want” like a golf cart and you’re already squeaking by (or worse) financially, you need to find another way to have fun.

The good news is that there are plenty of other ways to have fun, many of them free or low cost. In this case, the family could walk around the neighborhood, or ride bikes or scooters. They’ll still be getting around the neighborhood, but doing it for free. Doing these things will help the families save even more money, because they’ll be getting exercise and avoiding many of the lifestyle diseases that ruin their health and cost money to treat.

They could also play tag, Frisbee, or hide and seek in the yard and let the neighborhood come to them. They could visit with other people who are out walking or on their carts. They could invite the neighbors over for a potluck barbecue once a month. They could organize a neighborhood fun day where everyone just comes out and talks and plays various games. There are plenty of ways to have fun and keep tabs on the neighbors without a golf cart.

Fun has to involve some common sense. You can’t just do whatever everyone else in the neighborhood is doing. You can’t get caught up in fads and crazes. You have to have the fun you can afford. Many times, the things we want and see others doing are not things we can afford. We have to learn to say no to ourselves and find other kinds of fun. Fortunately, there’s plenty of free fun to go around.

(Photo courtesy of Nathan Bittinger)

How to Save When There’s No Money Left

December 21, 2008 By M. Beddingfield 10 Comments

You would really love to put aside some savings for a rainy day, but that rainy day is now. It seems like every penny earned is spent before it hits the bank. Saving money is becoming harder for a lot of folks. Some people are so strapped that they have never been able to save a dime.

Not so long ago, I was a single parent, I often worked two jobs and still had to go couch-diving at the end of the month to find change to buy a gallon of milk. Every penny counted. It was a big deal to save enough change to get a few rolls of quarters.

I wasn’t quite as financially savvy back then, but I learned a lot about squeezing out the very last drop of value. I have a few pointers that I can pass on to those who are struggling now.

The place I saved the most was in the area of waste. We are a wasteful nation of people. Everything is throwaway and buy another. The day I woke up and realized this, I started saving money. Waste is easy to eliminate with conscious effort.

Stop buying paper towels and use washable towels.
Turn old clothes into rags.
Use the last bit of liquid soap, shampoo, conditioner, etc. by adding a bit of water and shaking.
Ditto with food items like ketchup, mustard, BBQ sauce etc.
Recycle junk mail and envelopes into note paper.
Use both sides of paper to print on.
Use newspaper in place of paper towels for dirty jobs, great for cleaning windows and chrome.
Cook once, eat twice.
Make extra biscuits for breakfast and have them for dinner too.
Plan local trips.
If you need to go to the store, make the trip count and do all your errands on the same day.
Eliminate the need to run to the store for just a gallon of milk. You will nearly always buy something else you don’t really need.
Rinse and reuse everything – milk cartons, tin cans, plastic utensils from the fast food place, foam plates, Styrofoam cups, tin foil, bread bags and the list goes on and on.
Use plastic bags from the store for garbage bags. This one item saves quite a bit of pocket change since garbage bags are getting more expensive.
Turn off lights and line dry clothes whenever possible.
Air dry the dishes in your dishwasher.

I’m sure that you have a list of things that you do to eliminate waste. These are all common sense things, but if you make a habit of doing them, then they become a part of your lifestyle. The pennies that you accumulate will help you squeeze out more into your savings.

I have always hated to spend money for household cleaners. My grandmother used bleach, ammonia and elbow grease, all of which are cheap. But while I have plenty of elbow grease to go around, ammonia and bleach are tough on my skin and sinuses. So I needed to find alternatives. My cleaning staples are a gallon of white vinegar and a large box of baking soda.

Use baking soda as a scrub similar to Comet or Bon Ami. Works on many things from pots to the bathtub to counter tops to the sink.
Pour baking soda down a slow running drain and follow with a good dose of vinegar. The foaming action helps clear the drain.
Vinegar is great for windows and any kind of glass.
Vinegar cleans lime deposits from shower heads and coffee pots.
I use plain old Joy dish soap to mop my floors and follow with a mild vinegar rinse for really clean floors.

There are many things that you do that can be adjusted to help you save money. Take getting a haircut. Instead of getting your hair cut every six weeks, try waiting eight weeks or even longer. Instead of using an expensive contract cell phone, try switching to a Trak Phone and only pay for the minutes you need. Cut back on cable TV, just order the basics. Have a friend or relative tape movies for you. Squeeze the last drop out of the toothpaste. Choose shorter showers over a long bath. Save bath soap slivers in the toe of an old pair of nylons. When you get enough, use it for a bath scrubby/sponge.

There are a million different methods to cut back and save pennies. But you have to be willing to save those pennies and not spend them. Anyone can save, even if it’s just a small amount. Small amounts add up too.

What are some of the things that you do to save money when money is tight?

The Money-Wasting Days of Our Lives

December 2, 2008 By Jennifer Touchette 6 Comments

In the days when I worked at an office, I would often get up late, rush to work and hit the coffee place on my break. I’d head to the corner shop for a snack in the afternoon, and then run to get more groceries on the way home since I had no idea what to cook for dinner. Money flowed from my account. Perhaps I was taking a break from my frugal upbringing, but I never seemed to have any money to add to my savings.

Since then, dear husband has introduced some common sense into our financial lives, a.k.a. “budget,” which required us to take a close look at how we spend our money to maintain our lifestyle. I, particularly, had to cut out many of the habits that wasted our money.

From the moment we wake up, we make choices that either save us money or could cost us what we should spend on our bills, retirement or put into savings. When you need to clamp down and save, it’s time to be conscious of everyday habits. Here are some habits to limit:

The morning routine

I woke up late and can’t eat breakfast at home: I’ll grab something on the way to the office. A typical coffee shop breakfast of can cost almost $6. Drop by the grocery store instead and choose fruit, yogurt and bagels. Buy some extra for the rest of the week, if you find you are regularly eating breakfast at work.
I didn’t make the kids’ lunches: I’ll let them eat hot lunch at school. Lunches at my child’s school cost $2.10 per day. Yes, it is a great deal, but it also adds up to $10.50 in additional food costs each week.
I don’t have time to make coffee to take with me: I’ll grab some on the way. The fanciness of the coffee dictates the price, so for instance, my favorite brew costs $3.50 per 16 oz. cup. Over five days, that adds up to more than $17.
I forgot to fill up the car with gas: I’ll head to the closest gas station. The closest station might also be the most expensive. The closest to our house typically costs four cents more per gallon than my regular station.
I forgot to turn down the heat when I left the house: Why heat what you’re not using? You’ll notice a difference in your bill if you remember.
I’m late to work: I’ll drive quickly to get there. Smooth driving can increase your car’s gas mileage, and those speeding tickets cost a lot. Traffic tickets in our area are now more than $100 for speeders.

The daily grind

I’m late to the office: I’ll park my car close and pay. There are a lot of places in my city where you pay to park during the week. The daily fee is $10. A monthly pass to the cheapest lot is $40.
I forgot to bring my lunch: Let’s go to the restaurant. Bring your lunch and put what you save to your car payment.
I want to go shopping on my lunch hour: Unplanned purchases can break a budget. Use the time to take a walk, read a book, or do something else that is free.
I’ll treat myself at the vending machines: You could end up spending twice as much for a soda from the machine as one you bring one from home.
I only drink bottled water: A bottle of water can be $1 or more, making a one-a-day habit at least $5 a week. If you can’t tolerate your tap water, invest in a filter to make it taste better, then take your own water with you.
I’m too tired to go to the gym: If you find you’re not going often enough to make the cost of membership worthwhile, cancel the membership and invest in a good pair of walking shoes. Your dog will thank you.
I’ll put off the oil change for one more month: Yes, it’s a pain to take the car in for maintenance, however, it’s so much better than paying the hundreds of dollars for a big repair job.
I need a couple of items at the store and bought some other things too: A list is your ally. It can help you avoid the tempting items you don’t need.

The evening rush

I’ll go for a drink with friends: Try to limit it to one drink. If you have another, you could have paid for the ingredients to enjoy your drink at home.
I’m too tired to make dinner: I’ll drop by the pizza place. A good pizza in our town costs more than $25 for a large. During your next grocery-shopping trip, get a few inexpensive convenience items that can be pulled together quickly into a meal.
I want to wear my favorite shirt tomorrow, so I’ll throw it by itself into the wash: It takes as much energy to wash a small load as a full load. Wait until you have a full load before you run your large appliances.
I forget to turn off the lights when I leave a room: Turn off unneeded lights and save a bundle!
I’ll just look around eBay: Who hasn’t found their heart’s desire on eBay? If you’re trying to save money, avoid the websites that tempt.
I need to relax: I’ll take a long, hot shower. Heating water is expensive. A low-flow showerhead will reduce the amount of water used during a shower.
I like to fall asleep in front of the television: The energy use for all the television you slept through can add up. While it doesn’t use as much energy as a fridge or furnace, some of the newer televisions can add upwards of $40 to the bill.