Wherever you look, people are hurting financially. Money is becoming scarce, but what makes matters worse is most Americans haven’t changed their habits and it’s killing their bank accounts. We’re wasting money and the only way to stop the bleeding is to stop the bad habits. Here is a top ten list of where most Americans go wrong and how to fix it.
- We like to buy new. It’s probably the worst habit of all—we love to have the shiny, pretty cars, clothes and tech items in their original packaging. But do you really want to pay more than twice the price? You’d be surprised at what you can find through second hand stores, garage sales and online sources like eBay, Craigslist or local classifieds.
- We Don’t Haggle. You don’t need to accept initial offers, especially in this economy. Anyone trying to sell you a product or service is just as desperate as you are, which means if you are willing to ask for it, many times you can get discounts. Start saving money on cable services, hotels and professional services, like carpet cleaning or doctor bills by simply asking for a discount.
- The Brand Name Syndrome. It’s almost impossible to tell the difference between a brand name and a generic. That means the only true difference anymore is price. You’re basically paying for a logo. Save yourself some money and go generic.
- The House is TOO Big. The housing bubble popped and so did many wallets. You wanted to have it all, which included the big house—but now those extra rooms have become an extra drain. Higher maintenance, higher utilities and higher taxes mean a transition into something smaller. Focus on what you actually need.
- Stuck Paying Interest. Listen one more time: stop living beyond your means! That includes borrowing money to do so. Get rid of those credit cards and learn to use what you have. Simple test: if you don’t have the cash, you probably can’t afford it.
- Dining Out. The average American goes out at least twice a week to eat. That’s a lot of cash when you add it up. If you want to save some dough, cook at home.
- Filthy Habits. Want to save a mountain of money? Then cut back or stop smoking, drinking and gambling. They are not only obscenely expensive; they’re a destructive pastime you can do without. Stop smoking a pack a day and you can save $2,190 a year and maybe your life.
- FREE stuff we pay for. Some things in life really are free, but for some stupid reason, we keep paying for them. Information, entertainment, TV, water, baggage, hotels and more. Use “free” in your Google searches and watch what comes up.
- Walking away from free money. If your employer is willing to match funds (in your company’s 401K), and you don’t take advantage of it, you’re turning down free money. Even taking the right tax deductions and buying the right quality appliances for your home can provide free money.
- We pay through the nose for insurance. Are you a responsible driver? Then raising your deductible from $250 to $1,000 could save you a chunk of cash, up to 20 percent.
Employ any, or all, of these tips and you will be shocked to see how much more money you have. Practice them long term, and you can become wealthy.
About the Author
Allen Schowengerdt + is an avid sports fan. He studied marketing in college, so his writing might take a different angle than most others.
