There are probably several ways that you're losing money — ways that you don't even realize. Nowadays, many people are concerned about saving their money therefore, they count their pennies, and they’re serious about budgeting their cash. But even if you're a savvy consumer, you might unknowingly flush money down the toilet. Here are seven ways that you're losing money without even realizing it.
What are some ways that you're losing money on your credit cards? Well, if you have a credit card with a rewards program, you might be losing money if you never take advantage of your rewards. Rewards credit cards earn one point for every dollar you spend. You can redeem these points for gift cards, merchandise, travel or statement credit. Rewards are an excellent way to save on future purchases, but you’ll only save if you redeem points that you've accumulated.
Food costs rise every year, and if you're constantly throwing away food, you're probably losing a lot of money. To avoid this, only buy what your family needs. Another approach is eating out of your pantry. This involves preparing meals around what's available in your cabinets and refrigerator. Therefore, you only shop when you're actually out of food.
An unlimited phone plan might provide peace of mind. If you take a look at your phone bill though, you might discover that you only use a percentage of your data allowance and minutes. Therefore, you might be paying more than necessary. Call your service provider and discuss other options. You might be able to acquire a plan with fewer minutes and less data, and ultimately save every month.
Personally, I'm not a fan of automatic drafts. However, if you sign up for automatic payments with some of your creditors or insurance providers, you might snag a discount, which can significantly reduce your payments or premiums. Paying your bills this way might work if you're busy and constantly forget to cut checks. For this to work, you have to budget for the draft and have the cash available — or else incur late charges.
Yes, it takes time to cut and search for coupons however, coupons are essentially free money. You can use these for just about any purchase from food to clothes. And since some coupons let you take 20% to 50% (or more) off a purchase, it's an excellent way to save money and increase your savings.
Most things in life are negotiable, including your salary. Therefore, don't be afraid to ask for more money — if justified, based on your experience and education. A lot of times, an employer’s offer isn’t the best they can do. However, if you never open your mouth and ask for more, you could end up working for less than you deserve.
Most creditors only report late payments when payments are more than 30 days past due. However, this is not a pass to submit credit card payments past the due date. Not only will you be charged a late fee, which can range from $25-$45, paying your credit card bills late might result in a higher interest rate. And if you ever decide to ask your creditor for a lower interest rate, the company might deny your request because of your history of lateness. The higher your interest rate, the more you'll pay in finance fees.
Money is hard to come by these days. Therefore, it only makes sense to take advantage of money-saving opportunities. The less you spend, the easier it'll be to grow your emergency account and reach financial goals.
What other ways do we flush money down the toilet?