Amanda emailed in the link to this article on 25 Ways to Waste Your Money. I thought it was packed with a lot of great advice. Here’s a snippet:
Has your budget sprung a leak?
Nearly everyone has spending holes. And as with other kinds of leaks, you may have hardly noticed them. But those small drips can quickly add up to big bucks. The trick is to find the holes and plug them so you can keep more money in your pocket. That extra cash could be the ticket to finally being able to save, invest, or break your cycle of living from paycheck to paycheck.
Here are 25 common ways people waste money. See if any of these sound familiar, then look for ways to plug your own leaks:
1. Carrying a balance. Debt is a shackle that holds you back. For instance, if you have a $1,000 balance on a credit card that charges an 18% rate, you blow $180 every year on interest. Get in the habit of paying off your balance in full each month.
2. Overspending on gas and oil for your car. There’s no need to spring for premium fuel if the manufacturer says regular is just fine. You should also check to make sure your tires are optimally inflated to get the best gas mileage. And are you still paying for an oil change every 3,000 miles? Many models nowadays can last 5,000 to 7,000 miles between changes, and some even have built-in sensors to tell you when it’s time to change the oil. Check your manual to find the best time for your car’s routine maintenance.
Read the full article here.
Matt says
Regardless of your car’s age or mileage, changing your oil only involves a wrench to take the oil plug out, a wrench to take the filter out, and a new filter and (usually) 5 liters of new oil and a new filter. It’s well worth doing every 3,000 miles, along with checking your belts and rotating your tires.
Melissa says
I agree with most of these, except the bit about life insurance. I have whole life policies out on all three of my kids. It’s definitely a financial commitment right now, but in 15 years, the dividend on the policy will pay the premium, turning it into a nice gift for my kids. Whole life insurance is cheapest to buy when you are very young – my mother worked for State Farm when my brother and I were growing up, and she took out several policies on us – I’m worth more dead than alive! Haha! But seriously, it’s not pleasant to think about your kids dying, but I think of it more as an investment for their adulthood. I’m certainly glad that my parents thought that far ahead.
april says
I generally agree with the article except for the life insurance thing I enjoy the added benefit of life insurance especially if purchased at a young age its locked in forever and it doubles for my daughter at age 18 and if need be can borrow money from the policies and its still my money because its money I paid in and at some point we won’t even have to pay our premiums anymore. I pray that my daughter never needs her policy in my lifetime but we will all pass away at some point.
mariah says
#2 about changing your oil in your car:
My husband is a master mechanic and keeps our cars running really well and he really thinks it’s necessary to change the oil every 3,000 miles. It’s WAY healthier for the car and will keep it running longer…just saying! It’s only about $50 for good oil (Mobil one) and a good oil filter, if you can change it yourself, which you should try to, because it can be VERY easy. I even did it when I was Pregnant—and I’m a wimpy, girly girl!!! 😀
Andrea Q says
I’ve never paid $50 for an oil change. Most shops around here, including the dealerships, charge $30 or less.
mariah says
yeah, that’s because they use SUPER cheap oil and filters.Not trying to be a know it all or snobby. Just thought I’d share useful info, from a professional stand point. 🙂 My husband is a service manager at dealership.
Anon says
Ok, for some random reason, this article inspired me to call for new auto insurance quotes, and I’ll officially going to be saving $58/month on car insurance beginning this month!!! YAY! 🙂 I’m going to put that with what I’ve been paying toward my student loans and I should have those paid off BEFORE I finish my Master’s degree!!!
Thank you for posting this Crystal!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stephanie says
Way to go! I love negotiating to lower my expenses. We shopped around for new homeowner/auto insurance policies last year and are saving $70/mo by switching to a different insurer, plus the amount of our coverage has increased.
I also negotiated with my cell phone carrier last year to have my bill cut in half (eliminated internet access, which I really didn’t need).
Anon says
That’s so good to hear! 🙂
I lowered my cell phone bill by $10 by evaluating my usage and cutting my text plan in half, and another $10 by doing the same thing with my data plan.
Crystal says
Woohoo!!!!
Jessica says
I gave up drinking Pepsi last December and WOW am I saving money.
Brooke says
Great job Jessica! I am working on that right now. It has been over a week since I’ve had a Pepsi. The headaches are finally subsiding!
Ericka Lewis says
I liked number 9 about the tax refund. So many people I know are so excited to get huge refunds back and even after I explain that they could have had that money during the year, they say it doesn’t seem the same. I personally would rather earn interest on it than let the government hold onto it so I can get a big check!
Andrea Q says
There is a link to an interesting food article within the main article:
http://shine.yahoo.com/event/financiallyfit/14-ways-to-save-money-on-groceries-2447559/
I learned a couple of news things about keeping food fresher longer!
Becky says
I agree with most of these. I am going to *attempt* to have my husband read this when he gets home.
I’m the one saving every dime, and he’s out buying soda and chips at the gas station every day.
The only one I don’t agree with is the insurance. I think everyone needs life insurance…. I heard that the average cost of a funeral is around 10k these days. I know I don’t have the kind of cash needed to bury a loved one, if they don’t have insurance.
Milk Donor Mama says
The cost of funerals is way overblown. A simple cremation and memorial service would be less than $2k. It’s the guilt / emotional complex that lets people get suckered into buying plush velvet pillowy gold lined boxes and impermeable vaults, meanwhile the living must sometimes go into debt to do so. Just my two cents though! Personally, I hope to have my body donated if organs are usable or used for medical research. My grandpa recently died and the family did the traditional, $8k funeral for him. My 4yo asked why he was wearing lipstick and paint on his face!
Amber L. says
It depends what area you live in as to what a funeral can cost. I am sure on some parts it might be easy to find someone to do a cremation for around $2k, but around here it is just short of $5k. In my line of work we have to see the funeral/cremation bill and then we deduct the “fancy” (flowers, cards, headstones) and get to the bottom of how much it costs. We are in a high cost of living area though, even milk is $4 a gallon for 2%! Crazy these days!
Melodie says
Preference is a factor. There is something to be said for the closure that an open casket provides. And religious convictions about cremations come into play often. I agree that things could be cut down significantly by avoiding the impractical, but it is a very personal decision that should not be considered lightly. Think about it ahead of time and communicate with your next of kin about it. Then decide whether to say yes or no or how much to life insurance policies with your eyes wide open so you or your relatives won’t be put in a tough position at a time that it’s really tough to think about it anyway.
Heather K. says
Great article! Something I would like to add would be to revisit your cable/internet/home phone bill if you have had the same pan for several years. I just did this and called the company and asked for a better deal. Got it! $30 less a month! Will have the same service except I will now have unlimited long distance calls for the landline. Got more for less!
Lee says
I would just like to say that more importnat than not getting your oil changed every 3,000 is to actually find a good mechanic. My FIL is one and he has said that although new cars don’t need their oil changed as much as the car ages that will change. So if the car is brand new you may be able to go longer but once a car gets over 50,000 miles you should start bringing it in a little more often and again once it goes over 100,000 it should be every 3,000. We have had 2 cars go over 150,000 and we did those every 2,000-2,500. It is well worth your personal time to learn how to add oil, check your oil, and to know how to check the color of your oil. If your oil starts to get dark it is definatly time for a change, but if it is still light you may only need to add a bit more.
We also opted to buy a brand new van last year. We got it at mid-year on a really great sale. We did finance it, but we got 1.9% interest. In 1 year we put 5,700 miles on it. Our goal is to pay it off early and keep it for 10-13 years or more (when some of our 3 boys will be grown). Had we bought used it would have been 3,000 less but at 4% interest. We would have paid more for the vehicle and had a higher monthly payment. As of right now our van has also not lost that much in value and since I have no interest in getting rid of it before it dies on us I am quite happy.
Anon says
Thank you for posting this. I just used billshrink.com and found a way to save $10/month on my cell phone bill!
Holly says
I can personally vouch for the keeping unhealthy habits one. I quit smoking for good two and a half months ago, and man, are we saving a lot of money just from me quitting. 🙂
jessica says
way to go you:) you will see the bentfits in more ways than money!:)
so excited for you!
Becky says
Yay Holly!! Way to go.
Rebekah says
like!
Jodi says
Congratulations!!! That is the biggest money waster in the world! I quit 15 yrs ago and cant even tell you how much we save, and that was before they were outrageous!
Laineykins says
I’m 18 years smoke free! Just think of all the money I’ve saved. Did auricular therapy for $80….well worth the money
alicia says
pretty good article…I am kicking myself right now because I let the days slip by and then lost out on my Pell Grant for college…$2500!!! By the time I started getting all my stuff together I only had like 6 weeks before the deadline and dont you know it…murphy hit…The office kept losing my W2s, then my acceptance letters, then the W2s again…But at least I made it in time for spring semester… 🙂 We are filing our taxes tomorrow and then going straight to the college to apply for the coming up school year…
Always research to see what you can get…Even though my school is completely paid for (Thank you Post 9/11 GI Bill!) and I get a living allowance each month from the GI Bill, I still qualified for almost $6000 in Pell Grant each school year!
Cristina says
I agree with what Danielle said above. Regarding insurance for kids, there are a couple more reasons which make it a good idea. We don’t rely on our kids for income, but should a child die, it’s not always easy to go right back to work. You might need a little time off or even therapy, and these things cost money. Another unpleasant thing to think about is a costly divorce. So many couples who have lost a child ended up divorcing. I know it’s not something we want to think about, but adopting the head-in-the-sand ostrich tactic doesn’t change reality.
The other issue I have with the article is the point about buying used cars. That’s highly variable, depending on how long you usually keep a car and what car you end up buying. If you keep your car until it dies, and you buy a Honda or a Toyota, you’re probably better off buying new. The reason for that is because they hold their value so well that a 2-3 year old model is only slightly cheaper than a new one, and it comes with several thousand miles already on it and you’ll have fewer years to drive it. On the other hand, if you prefer driving relatively new cars and only keep them for, say, 5 years, then go ahead and buy used. Let someone take the depreciation hit for you.
Andrea Q says
I agree about new cars. We purchase new and drive them until they fall apart!
Jessica McCarty says
I never thought about that with new cars. I thought it was a bad idea to buy new car but what you say makes sense. We will have to think about that when it comes time to buy another car. My husband works at the Honda manufacturers in Indiana and he gets a 10% discount.
The Happy Wife/Danielle says
I agree with many of the things the writer said, but 2 of them jumped out at me as needing clarification. The first one is buying store brand over name brand. If you are paying full price for the item without any coupons, this will always be the best option, but often (as Crystal and many of us know), you match coupons with sales and get brand name items for less than store brand items. I would rather have seen that bit of advice say to stock up when you find products on sale and have coupons, but if you absolutely NEED it and it is not on sale and/or you do not have coupons, then buy store brand.
The other bit of advice that bothered me was regarding life insurance for kids. It is a morbid thought to imagine ever needing to use it, but we did not purchase it in case we ever needed it. We have it for the simple fact that if any of our children ever develop diabetes or come down with cancer or another serious illness, they will still be able to get life insurance when they need it. It is called insurability. Plus, the younger they are when you get life insurance, the less expensive it is, and usually that price locks in for the life of the policy, which can often be carried over into adulthood. Just my thoughts.