There are many small ways each day we flush our money away. These seemingly small things can add up to losing hundreds of thousands in investments over time and make it harder to build wealth. Here are 7 particular money wasters that are easy to fix:
1. Paying interest on a credit card bill
Just never do this. You would be automatically paying extra for things already purchased. In order to reach FI, I’m convinced one has to be in the habit of paying off the credit cards every month.
2. Mindless house wasters (lights, AC, paper towels, long showers, etc.)
How many lights are left on for no reason? Does the air conditioning have to be that cold in the summer or that hot in the winter? Are we just grabbing paper towels for every little thing? These things that seem little in the moment, 10 cents here, 25 cents there, start to become dollars! And on and on. Keep the showers to a minimum as well!
Turn out some lights!
Long hot showers may feel good, but it wastes a lot of energy, water and money. Set a timer!
3. Expensive sugary coffee drinks
Do we have to order the Venti sized for an extra dollar? Do we need these sugary drinks to begin with? It adds up over time!
4. Ordering drinks when eating out
I know it looks good, but it’s going to cost you. Don’t make ordering drinks out a habit. Save it as a few times a year thing.
5. Compulsive online shopping, click therapy
I understand life in America can be hectic and stressful. We are working all the time. But watch out for the never ending cycle of retail therapy. Perhaps find a less expensive outlet to manage life stress.
6. Driving too many places
I get it, we are a car culture. But we are taking it too far driving everywhere all the time and dealing with lots of traffic. This is another huge drain on our finances, like a leaky bucket that will never be filled.
7. Putting furniture on credit
The minute new furniture arrives at your house it loses half its value. Some antique furniture retains its value. Most furniture does not, so don’t pay high interest charges on the furniture. Furniture should be paid for in full and if you can’t do that then do with something else.
If a person can manage these seven areas better they will be able to shave thousands off expenses. That money can be plowed into your FIRE goals.