We’ve all been there; another paycheck flew by and we’re left asking: “Where did it all go?” If this is you on a regular basis, it’s time to start scrutinizing your budget a little more closely.
Make sure to keep a lookout for all the bad financial habits you have developed that are slowly flushing your money down the drain.
Here are five bad financial habits you need to weed out to save your hard-earned cash, according to Business Insider.
Brand Loyalty
This one affects so many of us. Brand loyalty isn’t necessarily an economic evil. It all depends on whether the favored brand has practical justifications, such as safety and superior quality, or if you’re just wasting extra money on a familiar name.
An excellent example of this is athletic shoes for sports. You might want to lean towards the more prominent and proven brands, rather than cheaper or poorly made ones, to ensure that your feet and legs are well-protected from injury. However, you might want to hold off on that pair of designer sneakers entirely if your monthly bills are looking a bit tight.
Buying Disposable and Short-Life Products
Buying a lot of disposable and short-life products can add up after a while when it comes to costs.
If you find yourself spending just a little bit too much on one-use/short-life products such as disposable cups, coffee pods, or an outfit you’ll probably only wear one time, it’s probably time to buy something longer lasting. Otherwise, you’re literally throwing money away.
Over-Buying Spares
This one happens more than one would think. Often, we buy a lot of different stuff that we already have. It essentially doubles items such as kitchen utensils, tools, and even articles of clothing to the point of redundancy.
Before your next impulse purchase, think about if you already have an item like it at home.
Ignoring Bank Charges and Fees
It gets really easy to ignore all the various bank and finance charges that show up. But like so many on this list, it all adds up and ends up costing big bucks if you don’t stay on top of it.
To avoid getting overrun by maintenance fees and overdraft charges, the first thing you need to do is get organized. You have to know what the bank is charging your account at all times. It is also good practice to call your bank whenever a random or suspicious fee pops up to clarify what it is. You will either get familiar with fees you might not be aware of or find that some of the fees are incorrect and be able to prevent future ones.
Paying for Rip-offs
As a person who manages a budget, it should be in your best interest to find the best value for your hard-earned money.
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Shopping around for the best deal and doing the right research before making a purchase is something everyone of any financial status should do. There is nothing worse than the feeling of finding out you overpaid for something you really wanted but you could have paid less if you just invested the time to sniff out a better deal.
