As prices soar, it’s hard enough to stay on budget without wasting hard-earned dollars. Yet spending habits don’t typically change unless we recognize and change them. Here are 10 ways you may be squandering money without giving it a thought:
- Dry cleaning – Dry cleaning dress shirts and other clothes that are washable can cost you hundreds of dollars every year. Plug up the leak by checking labels and washing whatever you can.
- Extended warranties – An extended warranty on a major appliance may seem like a good idea. But most policies, according to the FTC, are a waste of money. A better plan is to sock money into an emergency fund to pay for any unexpected repairs.
- Rental car insurance – It sounds like a reasonable precaution to take, but in most cases, your own auto insurance and health insurance will cover liability and health care costs in the event of an accident. Before you agree to rental insurance, check into your own policies.
- Bloated airline fees – We’ve all become accustomed to paying more for add-ons when we fly. But don’t pay more than you need to. Compare prices not just for their price, but for what they charge extra fees for.
- Bank fees – Americans pay more than $17 billion a year for overdrafts and insufficient funds. Keep enough in your checking account to avoid such fees and switch to a bank that offers free ATMs and doesn’t charge maintenance fees.
- New cars – That brand new car will lose 11% of its value the minute you drive it off the lot. Consider a ‘gently used’ one, with a short-term loan you can pay off quickly.
- Wasted food – Too much food goes to waste in the U.S., mostly because of impulse buying. Shop with a meal plan in mind, and eat leftovers, or you’re tossing dollars into the trash.
- Unclaimed 401 (k) matches – Studies show one in four employees does not invest enough in their 401(k) plans to earn the full employer match. If you’re one of them, you’re missing out on serious cash. Over 30 years, the average unclaimed employer match with a return of 8% could add up to more than $150,000.
