A penny saved is a penny earned, but if you’re spending your hard-earned money on things that don’t add value to your life, is it worth it? You might even be spending money on things that may cause more problems than they’re worth.
If you’re spending money on things that don’t offer much value to your life, you’re wasting your money. It’s something we all tend to do, to a certain degree. Heck, some of the worst money wasters are things we don’t even think about.
So what are some of the worst money wasters? Let’s go over a few of them in this post.
Buying an overpriced house
First, let’s start with the biggest money waster of all—buying an overpriced home. Yes, it can be very rewarding to own a well-suited home to your family’s needs. However, buying one that’s too expensive can lead you into debt for years to come.
A common mistake people make is finding out their credit score and then borrowing as much money as possible to buy the biggest, fanciest house they can. That’s not always smart if you end up spending more than you can afford on mortgage payments.
Not only that, but it could be hard for you to sell your home for a reasonable price if the market shifts and you no longer have equity in your property.
Expensive cars
Like buying an overpriced house, people tend to waste money on overpriced cars. They may not apply the same spending logic as they do for homes, but some people will buy new and expensive cars they can’t afford.
When you buy a car, your car loses value as soon as you drive it off the lot. Cars are generally not an asset that will appreciate over time, which is why it’s not a good idea to buy an expensive car.
That’s not to say you shouldn’t buy a car. For many, a car is a necessity. However, if you’re spending thousands of dollars per year on a car loan when you could pay cash for a cheaper used car, you’re wasting money.
Dining out frequently
Many people enjoy dining out—it’s a social activity. However, the cost of dining out frequently adds up even if you’re not drinking or doing anything besides eating your meal.
When you dine out, everything costs money. Your drink, an appetizer, your main course, dessert, etc., will all cost you money, and it all adds up. These costs are marked up far higher than you would normally get at a store or if you made a meal yourself.
Additionally, eating out frequently can be harmful to your health. Many restaurants will serve larger portion sizes that may contain unhealthy ingredients. This can cause you to gain unnecessary weight.
Drugs and alcohol
Drugs and alcohol can be a terrible drain on your finances. Sure, a drink every now and then isn’t too bad, but if you’re the type who goes out for drinks often or uses drugs regularly, your finances will take a hit.
Drugs can be pricey, especially if you’re buying them illegally. While relatively easy to get a hold of, alcohol can be costly if you drink frequently.
Additionally, drugs and alcohol don’t add much value to life. In fact, they will harm you in the long run. The more you use drugs and alcohol, the stronger chance you have of developing health conditions like high blood pressure.
Overpaying for entertainment
Everyone wants to have fun, but if you find yourself spending more money on entertainment than you can afford, then you may want to scale back.
For instance, cable bills are notorious for being expensive. Depending on the package deal offered by your cable company, it could cost well over $200 per month for basic channels alone.
And what about all those movie and concert ticket fees? Many people enjoy going to the movies and live shows, but if you have a large family, that’s a lot of money to spend on entertainment in just one month.
Closing thoughts
Everyone makes mistakes when it comes to their money. The most important thing is you learn from those mistakes and don’t repeat them in the future.
And no matter how much money you earn, there is always a way to save even more money—even if it’s just by cutting back on one of the above items. Instead of seeing how much you can overspend each month, look at your spending habits and adjust accordingly so you can save money on things you don’t need.
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