The Daily Money Pits You Need To Know About
The problem isn’t that we don’t earn enough money. It’s that we spend too much of it.
If you’re lucky enough to have, say, a $30,000 a year job, then you’re far and away one of the richest people on the planet. Alas, it’s difficult to save as much money as you’d like because you also spend money like you’re one of the world’s richest people!
And most of this money isn’t going on big, important things; it’s being spent on the “daily money pits”- expenses that quickly use up your available cash.
Consider these money pit examples, and how you can avoid them.
Lunch on the Go
We all like convenience, but sometimes we take it too far. For example, it would make much more financial sense to prepare our own lunch at home, but many of us don’t. We end up spending $5-6 a day just on food that someone else prepared, which, spread over a year, amounts to well over $1,000!
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If you’re adding a coffee a day into that, then you’ll be hitting close to double the amount. Isn’t there a better way for you spend the $2,000? Make your own lunch, take coffee, and invest the rest.
After Work Drinks
You could save a further $1,500 a year just by skipping those after work drinks. While it can be fun to have a few drinks with your colleagues, it’s worth keeping in mind that alcohol is very expensive.
It’s not just one $7 cocktail; through the course of the night, you could have several, and then you’ll buy some food when you get hungry too. All in all, it’s an expensive way to spend an evening! Cut back, or find new ways to spend time with your colleagues outside of work.
If you’re recovering from a financial setback, this article may help.
The Commute
Work is where you make your money, but, sometimes, just the sheer act of getting there can leave a big hole in your bank account. If you drive to work, then you could be stung by high gas prices, which can add up to a serious amount of cash, especially when multiplied over many years!
A good alternative is to cycle, but be aware that even this might not save your bank account. Thousands of cyclists are injured each year, resulting in expensive hospital stays, though you can get help with obtaining compensation for your injuries online at GBW.law.
If you’re one of the lucky ones who has the option to work from home, take it – it could help you save a ton of money.
Shopping Without a Plan
It’s easy to do damage in the supermarket. Even if we’re just picking up one ingredient we need for the evening meal, we invariably walk out with many more items, at great expense.
If you’re planning to run to the shop after you’ve finished work, then make sure you’re taking a list of what you need with you. It’ll help stop those additional purchases, which you don’t need, yet do greatly inflate your weekly household budget.
Keep track
Invest the time to review your spending each week. Take a look at your bank statement and your credit card activity online, and consider if you need to change your spending habits going into the next week.
Take steps to get control of your spending, and to build a savings account balance.
This post is for educational purposes only.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/
(you tube channel) kenboydstl
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