Everyone needs to save their cash, even multi squillionaires will haggle on the price of their new Lear. While it is a given that we will always negotiate on the big ticket items like cars and homes, the little stuff that we ignore could be worth thousands each year. Here is a list of blush worthy things that we do that chews our cash.
Saving in places that do not pay interest
If you keep extra cash in a bank account that pays 1% interest you are losing out. If you are saving money for emergencies or even a short- term goal then a simple bank account may appear to be a reasonable option, but it is by no means the best choice. If you are paying 15-20% interest on your credit card while earning 1% in savings account you moving fast-in the wrong direction. Keep the cash in your bond or credit card. If you are debt free, look for options that pay better interest like fixed deposits or money market accounts.
Buying new stuff.
While shiny new has appeal it is not a smart way to spend your cash. Almost everything depreciates when it no longer has a seal on the box. If you are looking for a big ticket item, you can get a lightly used version for as much asm50% off. Obviously you may have to get the stuff checked out but for an hour of your time, you could have your thing without the sting.
Are you Gadget Addict?
If you are the type of person that stands in line for a new gadget launch, we need to talk. Being first to buy a new widget for bragging rights is just plain stupid. By waiting a few months for the hype to die down, you could shave 20% off the price.
Being a Brand Slave
Paying more for a little embroidered animal on your shirt is insanity. It does not make you richer, smarter, more attractive, or likeable but it does tell people that you have just blown a few hundred bucks on a few strands of cotton. Go and find a hilltop and question why you think buying expensive brands is a good idea – especially if your savings plan is looking a little wilted.
Delaying retirement saving.
You may not see delaying saving for retirement is a waste of money but in fact, it is a massive waste of cash because you give up on compound growth of your money. Every year you put off saving, is hundreds or thousands wasted in potential growth.
Paying for water, excuse me?
There are no words to adequately describe the folly of this behaviour. If you are worried about noo noo’s in your water buy a filter system, it will soon pay for itself. Fill a reusable water bottle and keep it with you.
Avoiding risk insurance products
Car, home, income protection, medical aids and disability cover are often perceived as superfluous to needs because we are convinced we can beat the odds. If you want to roll the dice it’s your choice but just one event that could be covered by a policy, could put you hundreds of thousands in the red. While you are on the hilltop thinking about your brand addiction, you may realise that the money you save on the alligator of donkey logos, could be redirected into some peace of mind.
Memberships & Subscriptions
Experts maintain that as many as two-thirds of gym memberships are never used. We often subscribe to a service that offers a discount for a year thinking it’s a good deal but if we only use it once a year, it’s a waste of money. Cull your subscriptions.
Extended warranties sold in retail stores
That charming sales person gets us at our weakest moment; when we are in spend mode. It’s only a few bucks more protect your new shiny thing. However, these warranties often have a telephone list of exclusions. In addition, many items have perfectly good manufacturer warranties. Just say no.
This is the short list, there are hundreds more. So if you are worried about your retirement plan or debt levels, look no further than some bad habits to free up cash.
