Twenty Ways To Waste YOur Money!

There's a song from the past; "Twenty Ways To Leave Your Lover." That's interesting and a rather 'catchy' song. But here's something you will probably find more current, considering the economy.
That is... unless you have a lover you are trying to get rid of!!!

I would say that the title should more aptly be: "twenty ways to prevent losing, or wasting your money."...That seems more appropriate in regard to what the message strives to communicate:


How to waste your money

1. Buy new instead of used. Talk about a spending leak -- or, rather, a gush. Cars lose most of their value in the first few years, meaning thousands of dollars down the drain. However, recent used models -- those that are less than five years old -- can be a real value because you get a car that's still in fine working order for a fraction of the new-car price. And you'll pay less in collision insurance and taxes, too.

Cars aren't the only things worth buying used. Consider the savings on pre-owned books, toys, exercise equipment and furniture. (Of course, there are some things you're better off buying new, including mattresses, laptops, linens, shoes and safety equipment, such as car seats and bike helmets.)

2. Carry a credit-card balance. If you have a $1,000 balance on a card charging 18%, you blow $180 every year on interest. That's money you could certainly put to better use elsewhere. Get in the habit of paying off your balance in full each month.

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3. Buy on impulse. When you buy before you think, you don't give yourself time to shop around for the best price. Resist the urge to make an impulse purchase by giving yourself a cool-off period. Go home and sleep on the decision. If you still want to make the purchase a day or so later, do your comparison shopping, check your budget and go for it. Oftentimes, though, I bet you'll decide you don't need the item after all.

4. Pay to use an ATM. A buck or two here and there may not seem like a big deal. But if you're frequenting ATMs outside your bank's network, the surcharges can add up quickly. Put that money back in your pocket by using ATMs in a surcharge-free network such as Allpoint or Money Pass.

5. Dine out frequently. A habit of spending $10, $20, $30 per person for dinner can be a huge drain on your wallet. Throw in a $6 sandwich for lunch and a $4 latte in the morning, and you've got quite a leak. Learn to cook, pack your lunch and brew your coffee at home and you could save a couple hundred bucks each month.

6. Let your money wallow. If you are stashing your savings in your checking account or a traditional bank account, you are wasting money. You could put it in a high-interest online savings account and get paid to save. You can even get an interest-bearing checking account through such reputable companies as Everbank, Charles Schwab, E*Trade and ING Direct.

7. Pay an upfront fee for a mutual fund. Selecting no-load funds can save you more than 5% in sales charges. Of course, no matter how well a fund has done in the past, you can't be sure how it will perform in the future. But if you pay a load, you'll begin the performance derby in the hole to the tune of the load. See the Kiplinger 25 for our favorite no-load funds.

8. Pay too much in taxes on investments. Are you investing in a tax-sheltered 401(k) or Roth IRA? If you're not maxing out those accounts before you invest in a taxable account, you're spending too much.

9. Buy brand-name instead of generic. From groceries to clothing to prescription drugs, you could save money by choosing the off-brand over the fancy label. And in many cases, you won't sacrifice much in quality. Clever advertising and fancy packaging don't make brand-name products better than lesser-known brands (see Similar Products, Different Prices).

10. Waste electricity. Of the total energy used to run home electronics, 40% is consumed when the appliances are turned off. Appliances with a clock or that operate by remote are typical culprits. The obvious way to pull the plug on your energy vampires is to do just that -- pull the plug. Or buy a device to do it for you, such as a Smart Power Strip ($31 to $44 at www.smarthomeusa.com, which will stop drawing electricity when the gadgets are turned off and pay for itself within a few months.

11. Pay banking fees. Overdraw your checking account and you'll pay $20 to $30 a pop, so it pays to keep tabs on your balance. Plus, are you still paying for a checking account? Free deals abound -- but make sure they're really free. For instance, will the bank charge a fee if your balance drops below a certain level or if you download your info into a personal-finance software program? That's not free.

12. Buy things you don't use. This sounds like a no-brainer to avoid, but how many times have you seen something on sale and thought you couldn't pass it up? Even if something is 50% off, you're spending too much if you don't use it. href=Couponing, for instance, can be a great way to save on your grocery bills. But if you buy things you wouldn't have purchased in the first place simply for the sake of using the coupon, you're wasting your money. The same goes for buying in bulk. A bargain is no bargain if it sits unused on your shelf or gets thrown away.

13. Own an extra car. Okay, so a car is a necessity for most people. But face it -- cars are a huge drain, from their loan payments to insurance fees to gas and maintenance costs. Own more than one car and you'll double or triple those expenses. Ask yourself if that second or third car is really necessary. Are you holding on to an old car for sentimental reasons? Can you or your spouse carpool, take public transportation or bike to work?

14. Ignore your local dollar store. Shopping at the dollar store can be hit-and-miss, but it's not all kitsch or junk. If you know what to buy, you can find some real bargains. For instance, my local dollar store charges 50 cents for greeting cards versus the $3-plus at a drug store or gift shop. (I have a big extended family so I figure this saves me more than $100 per year.) You can also score a deal on cleaning supplies, small kitchen tools, shampoos and soaps, holiday decorations, gift wrap and balloon bouquets.

15. Keep unhealthy habits. Smoking is not only bad for your health, it burns up your cash. A pack-a-day habit at $6 a pack costs $180 a month and $2,190 a year. A junk-food or tanning-bed habit can be costly as well. Not to mention the money you'll waste on medical bills down the road.

16. Be complacent about insurance. Your bill arrives and you pay it without a second thought. When was the last time you shopped around to determine whether you're getting the best deal? Rates vary widely from insurer to insurer and year to year. Reshopping your auto, home or renters insurance might save you hundreds of dollars.

It also pays to evaluate your insurance needs. For instance, upping your out-of-pocket deductible from $250 to $1,000 can save you 15% or more on your car insurance. Consider using the same insurer for your home and auto insurance -- you could snag up to 15% off for a multiple-line policy. And make sure you're not paying for insurance you don't need. For instance, you need life insurance only if someone is financially dependent upon you (such as a child).

17. Give Uncle Sam an interest-free loan. If you get a tax refund each April, you let the government take too much money in taxes from your paycheck all year long. Get that money back in your pocket -- and put it to work for you -- by adjusting your tax withholding. With a little discipline, you can use that extra cash each month to get started saving or pay down debt (or make ends meet to avoid going into debt in the first place). You can file a new Form W-4 with your employer at any time.

18. Pay for something you can get for free. Dust off your library card and check out books, music and movies for free (or dirt-cheap). Don't pay to receive your credit report when you're allowed to get it at no charge by law. Take advantage of kids-eat-free promotions. And dial 1-800-FREE-411 for free directory assistance.

19. Don't use a flexible-spending account. Your employer may allow you to set aside pretax dollars to pay for medical costs not covered by insurance. You can use the money for expenses such as therapy, contact lenses, insurance co-payments and over-the-counter drugs. You may be able to do the same for child-care costs.

20. Pay for unnecessary services. How many cable channels can a person watch? Do you really need all those extra features for your cell phone? Are you getting your money's worth out of that gym membership? Are you taking full advantage of your subscriptions (such as Netflix, TiVo or magazines)? Take a look at what you're paying for and what your family is actually using. Trim accordingly.

Well, since I live with the official Coupon Queen of Southern California, lol.......I can testify to this. My wife gets coupons not only from our Sunday paper, but from the neightboor's paper (they give them to her), she belongs to some coupon clubs on line, she belongs to several on line coupon places and prints them out from there, she goes to several manufactures sites to get coupons from them and prints those out and she is signed up for (on a junk email account) for other product coupons like dog and cat food. She uses her Club Card at Ralphs or Vons and gets their sale discounts and also and gets coupons form boh of them plus loads of $5.00 and $10.00 and $15.00 off your next shopping visit coupons. We save a huge amount of money everytime we go to te grocery store because of all of this and we are able to keep eating pretty well and healthy even during this lousy economy. I mean she saves us thousands, not hundreds of dollars a year by doing this. She has a little coupon organizer caddy too. When ever we make a grocery list, she hauls out the coupons.

Coontie, I love this thread. The advice is excellent and I have always followed many of the suggestions layed out. Especially about buying used cars with low mileage that are only a few years old. I have only bought one new car in my life and it was when I was young and single, eons ago and it was the cheapest model no frills Toyota.

We also have those enegry efficient compact florescent bulbs in different wattages in every lighting fixture and lamp indoor and outdoors and they last for years and years and really do cut your electric bill down.

We also cut back on our Direct TV. We have the expanded package and negotiated a price with them. We didn't need all the movie channels (which mainly show crap) and are happy with the channels that show the old movies like Fox and Turner and the indies on Sundance channel. Besides we watch mostly the History channels, the Discovery channels, Bravo, A&E, LifeTime Movies, National Geographic and the Travel channel anyways. I do splurge every year however, to get the MLB stations during baseball season. But I download a coupon for the package and order early and get the Early Bird Special and save 30%. It's the only sport I really enjoy besides surfing and golf and beach volleyball and those are all on for free on various networks. And we never get the paperback guide that they charge for, they have a channel guide on the system that you can click on anytime you want to while watching tv anyways. It's just a big waste of money.

I might add too, that with Vons, you accumulate points everytime you grocery shop there. Some of the stores have gas stations and you can use those points, by swiping your Vons card at them and save anywhere from an additional 10 cents to 18 cents a gallon off your gas fill-up. Their prices are pretty low to begin with so this is just an added bonus. I fill up at the one near us all the time.

When we went to the Orange County Fair with the whole family a few weeks ago, she had printed out free parking coupons and $5.00 off coupons on the admittance price for everyone too. lmao You gotta love that!

We love to read, and here in So. Ca. we are lucky to have two very very large and wonderful used book stores. We read books and a few times a year take the ones we have read in and get a credit and get more books. They always have the bestsellers almost as soon as they come out too. We can come home with just bags of books for very little money, after trading our old ones back in. And they give us an Old Customer disount of 15% at our favvie store and we get free bookmarks from them. They just toss a handfull in the bags for us. This one store also sells used dvds and cds and we trade in the ones we don't want anymore and come home with other ones, really cheap.

Don't forget garage sales. My rule is, "If I have not used it in two years, I do not really need it". We have had several garage sales and not only cleaned up and organized the cupboards, closets, drawers, cabinets and garage but made bootles of money getting rid of stuff that we do not really need or actually use. We save half the money and then use the rest for a specail treat for oursleves. We have one every couple of years. It's a lot of work (we put up signs the day before and haul it all out to the garage and set up tables and start very very early) but often the neighboors or other family members and freinds want to participate, we have a cooler with cold drinks and snacks and we park in beach chairs and it's not a bad way to spend the day, especially when you are making money and getting rid of crap. Whatever we don't sell, we donate to various charities.

I've happened to wind up behind "coupon queens" in the grocery line. The first give away is a basket loaded with; when one looks closely, a somewhat peculair and unusual assortment of items that stray from what the usual grocery shopper is buying - that is usually the tip-off. But, I think, okay, I 've got some time, although a somewhat distant alarm has already went off in my head: "coupons, coupons, coupons"!!! Still doubting though, I say nawww, cannot be. But then I notice they commence digging in their purse and come out with a fist full of little paper squares. Then I quickly commence to look for other open and avialble cashiers, because I've learned long ago that that process is going to take a while. Sometimes with bickering and exchanges between the cashier and customer and a supervisor being called on the intercomm, and price checks and...

Glad you liked the article. Thought there might be a item or two in there that everyone here might find helpful.
cheers!

ROTFL!! You have that down Julian!! I go and stand to one side near the person bagging the items up and try to pretend that I am just a casual observer until it comes time to pay. lmao

You are so right, the haggling over the specials and the prices and the coupons that don't scan and have to be entered by hand and the "Did you buy 10 of these, the coupons says 10". And the "Yes, of course I did" and then the inevitable rummaging around through the already bagged up items to make sure there really are ten of those canned Dole pineapple chunks in there. lol There is always some poor bagger that has to go check the sale sign of that Starkist tuna or the Orowheat bread or something too. That's when you get "the look" from the cashier. lol I just stare at my feet or start counting the ceiling tiles or something at this point.

Then comes the rain checks for the items that the store has on sale but they are out of. So that entails a visit to the customer service counter and the Manager on duty being summoned, while I run outside with the groceries to put them in the car and hide.

But when you are saving $40.00 to $60.00 and often more, (70 and 80 bucks is common during a big shop) it's worth it. And we really only do get the items that we actually eat. But cripes it is a process. At least she has them organized and we make grocery list and then she clips her coupons to that. But there always the shuffling of the coupons like a deck of cards as we meander down the aisles and picking some up after they fall into the cart or land on the floor. And thankfully Vons and Ralphs still double all the coupons.

I always get the feeling though that the checkers see us comming and are thinking, "oh God, there is that crazy Italian woman with the coupons" and then start arguing amongst themselves over which one of them is going to take their break before we get to their lane. lmao

You should see the process of just "doing" the coupons at the house. This takes sizzors, reading glasses (for me as she keeps handing them to me and always while I am trying to do something else) so I can verify the "expiration dates" on the damn coupons, her computer and printer churning away and her searching the net, coupons spread out like tarot cards all over the couch in various groups, the infamous "coupon caddy/holder thingy", piles of cut paper from the newspapers littering the floor of the den like a winter storm in Montana and at least knee high, which Max thinks it just marvelous to roll around in while the cat from hell usually sits on the fringe and grabs a few and just starts shredding them into tiny pieces and then spitting them.

Then there are the triumphant calls of ooohs, ahhhs, fantastico, meraviglioso and the little delightful "oh look darling, we can save 50 cent (singular lol) from two peanut butter jars". Well she is Italian- this is what she says, instead of, 50 cents off of two jars of peanut butter- but I am used to it by now- Lucy got used to Ricky and it's much the same in my household. The accent and the smattering of English mixed with Italian (especially when she talks to herself and it's usually about me lol) and the bass ackwards grammar and screwed up prepositions. This is my tiny life. lmao ---Gerry

When it comes to shopping it seems like both of our wives are the same. Mine does the same thing and I have no qualms abouit saving money now that I am retired. She even has a coupon basket at the motel where she works and is always clipping out coupons or various attractions and restaurants and such. and yes the folks really do dig through that basket and use them. In todays economy every little bit helps.