Even if you have a lot of money, wasting it is incredibly foolish. It’s crucial to recognize when your spending is getting out of hand. Take a moment to think about all the positive things you could do with the money you waste—things that could improve someone else’s life or your own future. Yes, you might be young and carefree now, but your future self will likely wish you had saved more.
If that doesn’t convince you, consider how hard you worked to earn that money. Imagine doing all that work for free because, essentially, that’s what you’re doing when you waste money. It’s like throwing away hours or weeks of your salary. Crazy, right?
Here are five signs that your spending is out of control:
1. **You Buy New Stuff Just Because It’s New**
You’re the person waiting in line at 2 a.m. for the latest iPhone. But remember, there’s always going to be a new iPhone or some other gadget. Companies thrive on creating new versions to sell, but that doesn’t mean you have to buy into the hype immediately. This isn’t limited to electronics. If you’re already thinking about next year’s car model while the new car smell is still fresh, remember that cars lose 11% of their value the moment you drive them off the lot and 19% in the first year. You only get your money’s worth after driving it for a while.
2. **You Shop Sales for Things You Don’t Need**
Whether it’s Black Friday, Cyber Monday, or any other sale day, you’re out there fighting the crowds to buy things you didn’t even know you wanted. You can’t resist a sale at your local department store or a two-for-one coupon for something you don’t need. You might think you’re saving money, but you’re actually saving more by not spending at all. Shopping at discount stores might seem like a good deal, but if you don’t need the items, you’re not saving anything. Plus, you’ll have to find space for all that stuff, potentially ending up like someone on a hoarding show.
3. **You Pay Fees to Use a Credit Card or Checking Account**
Paying annual fees for credit cards or monthly fees for checking accounts is generally a bad idea. There are plenty of credit cards with no annual fees and banks that offer fee-free accounts. Do some research and find options that don’t charge you for basic services.
4. **You Don’t Use Loyalty Cards at Stores You Shop at Regularly**
If you frequently shop at stores that offer loyalty programs but don’t take advantage of them, you’re overspending by about 20% each time. Unless you’re in a witness protection program, it’s worth giving your local supermarket your contact information to save money.
5. **You Eat Out More Often Than You Eat at Home**
If most of your meals come from restaurants, you’re spending much more than necessary. Eating at home is usually cheaper, even if you don’t cook much. Taxes and tips add about 25% to the cost of dining out. If you know how to cook, there’s really no excuse for not eating at home more often.