Many people look at their account each month and wonder how they could have possibly spent all of their money. Spending in small increments here and there is one of the biggest ways to lose track of how much you are actually wasting on things that you don’t need. In reality, spending small amounts consistently on frivolous purchases can be even more damaging to your bank account. You may think that the little amounts won’t add up, but in reality, they are the worst.
Wondering where all your money has gone? Take a look at some of the biggest culprits for how most people waste their money.
Eating And Drinking Out
Going to bars and restaurants is one of the biggest ways that people spend their money and have nothing left to show for it but receipts and a headache. When you are going to bars and you drinking heavily which will impair your better judgment, you are more inclined to spend even more money.
On average a night out can cost anywhere between $50 on the lower end to as much as hundreds depending on where you are and how expensive your drinks are. Try to limit your drinking and eating out and you will find that you will spend hundreds less a month. Ask yourself if one night out is worth the same as buying something that you really want and will last you for years to come.
Often when people don’t keep track of their checking account balance, all it takes is one extra transaction that sends them over the edge. This small amount can cost a hefty overdraft fee, some financial institutions pinging you for each charge.
This fee is the equivalent of taking a wad of money and lighting it on fire. Try to keep track of your spending and you can avoid this pointless way of wasting money. All it takes is a little budgeting and organization on your part.
Credit Card Interest
When your credit cards add up then you are letting the interest pile on top of interest on top of even more interest. It makes the most sense to limit your credit card debt and make sure that you pay more than the minimum due.
The way these payment plans are structured is in the bank’s favor. Letting interest pile up is essentially giving more and more money than you even borrowed in the first place.
Memberships You Don’t Use
Many people find themselves signing up for a magazine subscription, or a gym membership then never even using it. Try to keep track of memberships that you have monthly renewals on and ask yourself if you really need it. If you never use it, you may want to consider this is a waste of your funds.