About once a year I go through a phase—a deliberate phase—in which I evaluate our family finances to see where we’re doing well and where we aren’t doing so well. I especially look for places we are spending money we don’t need to spend—bills that are too high, subscriptions we no longer need, and all of those little money-wasters that eventually add up. And over the years, I’ve collected quite a list of ways that we, and perhaps you, waste money. Here are some of them:
There is something in all of us that longs to keep up with the neighbors—to have the things they have and to do the things they do. But it’s a fool’s game, of course. Envy and jealousy are never satisfied, and the more you have, the more you’ll need. It is far better to learn contentment and to stop fooling yourself into believing that more stuff will bring more happiness. A quick audit of your finances may show all the different ways you are trying to keep up and get ahead of your neighbors. It’s wasted money.
CLUB PACKS AND JUMBO SIZES
Club packs and jumbo sizes offer great value, but only if you can consume it all before it expires or is otherwise ruined. The stores have a knack for knowing exactly what products you are likely to buy in such quantities that you cannot possibly get through them before they go stale (or melt or wilt or grow mold or…). Buy the toilet paper, but be careful of the crackers, flour, or vegetables.
Sometimes you can save money by investing a little more up-front. Those dollar store toys may mimic the brand name, but if they cost half as much but break on the way home (which they always did for my kids) you aren’t any further ahead. Electronics, pots and pans, and even contractors—through hard experience we have learned it is better to spend a little more at the beginning to get a lot more in the end. Financial stewardship doesn’t always mean spending less.
It seems appropriate, after pointing out the potential value of credit card points and perks, to speak to another massive money-waster: Credit card interest. Credit card companies are betting that they can get you to over-spend so they can charge you their exorbitant interest rates. Don’t ever carry a balance! Play the game right and you can have all the benefits without any of the drawbacks.
FAILING TO MEAL PLAN
Meal planning is a practical way of stewarding the responsibility of caring for a home and family, but there is financial value to the practice as well: Meal planning allows you to know what you should (and should not buy) and pushes you to ensure that you use every bit of food in the fridge and pantry before it goes bad. We have wasted far too much money by throwing out food that we should have eaten while it was still edible. The better our meal plan, the less we waste.
Eating out is just so easy, and sometimes so pleasurable. But it also tends to cost an awful lot more than eating at home. Not only that, but the nutritional value is usually much lower. Save eating out for the special occasions, and day-to-day, learn to pack a lunch and prepare dinner at home. If you do eat out, eat out wisely
The free premium model is the new trend in gaming—to charge nothing (or almost nothing) for a game, to allow you to advance to the point where you are committed to it, and then to make the game agonizingly slow or agonizingly difficult unless you spend a bit of money on upgrades. Don’t do it! There are plenty of games out there that will treat you better, and you will almost always regret those charges when you see them on your credit card statement.