There are many things that we probably shouldn’t do with regards to our money. For instance, spending money without keeping track, not having a budget, or splurging with credit cards we can’t afford to pay off are all things that could cause problems financially. But what may be some of the not so obvious ones that can easily burn through our money and possibly even make us feel guilty afterwards? No, it’s not that occasional Starbucks you splurge on and not tell your significant other about. (Although, that may be an area that can still make you feel a bit guilty.)
No, these are things that you may pay for every month, and not even think twice about them. Or maybe you do, but it’s not until the middle of next month. Then you realize that they weren’t really necessary to begin with, and wonder why you paid for them. These may also be things that cause you to not do what you should be doing.
Jay White, founder of Dumb Little Man, wrote about such financial expenditures that often times “fly under the radar.”
The first one he mentioned was Subscriptions. This could be magazines you get because you might find the time to read them at some point. Or HBO Channels that you may think you need in order to see one or two of your favorite shows. Jay asks a really good question here:
“Are you still as excited about the purchase as you were on the day you signed up?”
He goes on to say:
“If not, ask whether you really need the item in your life or if you are willing to continue paying the monthly or annual fee. Remember, this is more than magazines and cable TV. Consider gym memberships, website forum memberships, cell phone data plans, the Wifi card subscription you don’t need at Starbucks anymore, etc.”
So it’s time to sit down and really calculate all of these subscription costs and see if you can find better ways to use the money. Remember too, when it comes to magazines, if you still want to occasionally read them, you can most likely find them online now.
Jay continues on to mention two things that many people struggle with. The first one is procrastination. You don’t want to put off doing today what you think you will have time to do tomorrow (but most likely won’t be able to fully complete). Jay suggests setting up an “automatic withdrawal that goes into a savings account not attached to your checking account. If your income level allows for it, put some cash into a Roth IRA, etc.”
The other thing Jay mentions is the act of making assumptions. “You have to plan your finances in a way that will all but guarantee your needs are met. If you do get a windfall or if Social Security exists in five years, you need to treat that as a bonus. You can NOT rely on anything that you don’t personally control.” Websters dictionary links assumptions with arrogance. Therefore, if you do not plan for your future on your own, one could almost claim you to be a bit arrogant, or that you feel like you are superior to others, and deserve to be taken care of in the future no matter what you did or did not do prior. However, that is why there are options in place now that allow you to save for later on down the road.
Don’t assume tho that it is too late to start. In fact, if you want some advice on trying to get started with your retirement savings, check out one of our many groups, such as Investing For Our Future.
Jay gives many more good examples of areas we could improve on that goes deeper than just spending less than you make, or only using credit cards when you can pay them off. Check them out and see if there are any areas in which you could improve and possibly save money now and for the future.
Related:
How To Determine Your Needs vs. Your Wants
Get Control Of Impulse Purchases
Three Reasons Uncle Sam Is Your Investing Partner
Saving For Retirement During a Recession
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