Do you ever think about things that are draining your money? The average person lives paycheck to paycheck, and yet doesn’t realize the many areas that are major money-grabbers. You might be able to save yourself $100+ monthly by taking a closer look at where your money is going! See below if you’re interested in finding out things that are draining your money.
1. Overpaying for Your Phone Plan
When you're looking for things that are draining your money, one of the larger culprits is more than likely your phone plan! Do you really use all of the minutes and texts you pay for? If you spend a large amount of time connected to Wi-Fi, then you could be overpaying for data too. Pay close attention to the small charges on your bill. I once noticed bogus fees of around $25 on my bill! One quick phone call can reassure you of exactly what you’re paying for.
2. Magazine Subscriptions and Movie Rentals
I used to subscribe to several of the trendiest magazines relating to fashion and beauty until I realized it was a money drain. The magazines would usually pile up on my coffee table until I would pick them up, flip through them quickly, and toss them. By nixing my magazine subscriptions I saved $50 per year! Now I refer to online blogs for my fashion advice. And Netflix costs only $7.99 a month, compared to spending $20+ at Blockbuster for a couple of movies alone.
3. Storage Unit Fees
Paying for storage isn’t always ideal. In some situations, you may not have a choice, but why not take a weekend and clear out that storage unit? Much of what you are holding onto could probably be donated to charity. The items that you do save out might fit into your attic or basement or garage. Saving yourself money AND getting rid of excess stuff-now there’s a good deal!
4. Credit Card Reward Points
One thing that could be draining away FREE money you have is your credit card reward points! How often do you redeem them? Some credit card companies have expiration dates for their reward points. And you never know when the policy for reward points could change at any given minute. So don’t “hold on” to your points in an effort to save them up, instead redeem them as often as you have enough; that way you get your “money’s worth”!
5. Utility over-usage
When your appliances aren’t in use, you should unplug them. Electricity is still being used even if the appliance isn’t on and running. This goes for anything that you plug into the wall, like cell phone chargers, vacuum cleaners, blow dryers, etc. And also remember to turn your AC or heat off before leaving your place. No need to pay for keeping the place cool or warm while you are gone!
Going into debt may be the only choice you have when it comes to bills you are behind on. But in reference to things you simply WANT and don’t NEED, like shopping, eating out, or vacations, then stop putting these things on your credit card. If you can’t pay straight up, then don’t buy it. Paying debt interest is cumbersome, so avoid it as often as you can!
7. Small Things
Small things can be a drain on your money. Buying a drink when you stop for gas, picking up coffee at Starbucks every morning, or getting your car washed every weekend. These are all examples of “small things” that could be draining your money!
8. Bank Fees
Oh how I loathe and despise ATM fees! My personal opinion is that you should never need to pay for gaining access to your own money! Watch out for ATM fees, along with overdraft fees, annual fees, and checking fees that your bank might charge. Find a bank that offers these items for free and save yourself a load each month.
9. Gas for Your Vehicle
Try to be as frugal as possible with your gas. Run all your errands on the same day. Carpool to work when possible. Walk or bike to nearby places! We often don’t bat an eye to make a quick trip to town on days we are bored or lonely, but making unnecessary trips in the car can drain your gas-and your money!
Becoming more frugal with your earnings is something that most of us should strive for. That way you don’t need to worry about barely scraping by from payday to payday! Have any of these things in particular affected your wallet? Please share your own tips on stopping the money drain!