7 Things You Never Knew They Are So Money Consuming

We all have bought something and later came to realize that it is actually of little benefit. The desire to fit in a given social class, competition to “keep up with the Joneses” and addiction are some of the drives that lead us into wasting money. A person may decide to buy the latest product on the market to keep up with the trend. You just landed a promotion and the first thing you think of is securing a mortgage for that dream home you had. In another instance, your friend John who works at the fast food stores at the gas station wants you to go for a ride every weekend downtown.

After some time, you begin to think of investment but you realize you have little income to drive you. Suddenly an eye-opener comes and you start seeing leakages from your income statement. That expensive watch that you rarely ware, the house you do not even have time to stay in or the numerous trip journeys that you could have avoided. This article b seeks to address money leakages that most people encounter. Below are some of the money consuming substances that one needs to avoid.

Seven things that are money consuming

1. Brand name products

Often we are tempted to buy snag products we see on the shelves, that we did not plan for. The flashy nature of the product or the brand name is attractive and you do not want to leave it. You cover your eyes in disbelieve. “What! You mean iPhone X is already in the market”. While it might be nice making a whim purchase, an investor has to make hard decisions, such as avoiding impulse buying habits. In cases of patients under instruction by their doctors, it is prudent to seek a generic version of the medication.

Impulsive purchases like a luxury brand are sources of money wasting. Warren Buffet cautions us not to buy what we might not need. “If you buy things you do not need, soon you will have to sell what you need”

2. Grocery shopping when hungry

Feeling hungry or idle? Not the best time for a grocery store. This is because you are likely to stretch your budget, by overshopping. The impact of buying stuff that you do not need is wastage.

The same can be said for shopping things that do not last. Well, one might argue that since rich people have money, why are they not wasteful or use their money anyhow they feel like. Peter Bush answers this by stating that “Wealthy people understand that the cheapest route is not always the most valuable,"

3. Shopping at a petrol station

The tendency of buying snacks at a gas station every now and then when refueling should be avoided. And since you do not keep a track record of the spending, you are likely to forget about their cost. Talk of the chips bag, glass of milk or soda that you pick while refueling or even passing at the chemist. Goods are often overpriced in these stores because of the “few seller nature of the market”.

It is important to keep a record of this stuff and budget on the amount to spend when going out. Alternatively, you can decide to carry along soda or snacks

4. Taking expiry date as law

Almost all products have manufacturing and expiry date label. For consumables, the expiry date is given much authority. This means that foodstuff whose expiry is due turns into wastage.

Expiry date on an item should not end all case. Sometimes, try judging the smell or the color before making a decision on whether to dispose of or not. Alternatively, you can store the food in a refrigerator to avoid spoilage. Where one is not sure of the exact expiry date, it is advisable to consider online database for reference.

5. Buying instead of renting

With real estate becoming a booming business, investors are mining everything from their clients. It is cheaper to rent a house today, compared to buying it and disposing of after say two years. Michael Corbett while stated the following “Renting is more popular than ever, even among the wealthy,"

6. Stuff over experience

Money and possession bring happiness. However, experience brings true fulfillment in life. Jaime Tardy notes that the wealthy choose one life over new gadgets.

7. Gambling.

When you wage money for an event outcome of which is uncertain, then you are gambling. Warren Buffet states that “Any government should not make it easy for people to take their social security check and waste them pulling a handle”.

Conclusion

There is a need to have a saving culture in life. Although it might look awkward and “not cool”, cost-cutting techniques like taking advantage of qualifying discounts have proven to be effective. The moment you realize how much you managed to save by cutting off luxury, probably, woll male you proud and happy.

 

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