A great exercise is track how much you spend on certain habits daily, weekly, monthly, and annually. Habits take a while to develop and often become a part of your regular routine. If you’re trying to reach a specific financial goal, it is smart to cut out or reduce some costly habits. Here are five habits you can give up to save more money.
1. Outsourcing Everything
Sure, outsourcing can be helpful in saving time. However, you can take things
too far if you start depending on other people to do everything for you.
2. Shopping For Fun
Some people find retail therapy important. How is this helping your wallet? Probably not at all. Try to plan your shopping trips for specific purposes as opposed to going to the mall because you’re bored. You can find cheaper hobbies that aren’t going to cause you to have a house full of stuff.
Smokers and non-smokers alike know that it’s a costly addiction for your health, the environment, and your wallet. If you smoke a pack a day, you’re likely to spend $177 a week on cigarettes, which is over $9,200 each year. Imagine what you could do with an extra $9,000 per year. You could pay off your debt, take a nice vacation, or start investing money and possibly retire earlier than you thought. Plus, you’ll be lowering the risks of having costly medical issues when you get older.
4. Daily Coffee Runs
Buying expensive coffee drinks daily is a habit that adds up over time. Instead, make your own coffee at home or drink coffee at your workplace if they provide it.
5. Depending On Credit Cards Instead of Budgeting
If you always pull your credit card out of your wallet when making an unplanned or everyday purchase, it’s likely that you will lose money in the long run. Using your credit card as back-up money is not a good idea because it’s unlikely that you’re going to be able to pay off your bill in full if you didn’t budget for the purchase in the first place.
Keeping a balance means you’ll have to pay interest and credit card interest rates are high. Credit cards should be used as a tool to improve your credit score. If you can start using them wisely by planning out your purchases in order to pay off the bill in full each month, you’ll avoid interest charges and save a lot of money.
Call Chi Ishobak today at (269) 783-4157 or visit our website.