Have student debt? Hear some expert tips on how to manage it

7 things you waste money on 2022-04-27 09:02:17

Have student debt? Hear some expert tips on how to manage it

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However, over time, even the most budget-conscious consumers may find themselves spending more than they need to on certain expenses.

1. Banking fees

Whether you pay a fee to withdraw money from out-of-network ATMs or pay a monthly service fee just to have a checking account, a small fee can add up to a significant amount of wasted money over time. The average monthly fee for interest-free checking accounts (excluding free checking accounts) last year was just over $5, according to bank surveywhile the interest-bearing checking account fee was more than $16 for those who did not meet the fee waiver requirements.
How does inflation affect the standard of living?

Waste cutting: Change banks. Nearly half of checking accounts have no monthly maintenance fees at all, according to Bankrate. The cost of the monthly fee, if you are unable to avoid it with your current bank, will likely outweigh any interest you get on that account.

2. Sell items you don’t need

There is no denying the excitement you get when buying an item at a lower price than its usual price. But spending money on something you don’t need just because it’s for sale can quickly lead to overspending.

Waste cutting: Next time you are tempted to buy something at a discount, wait 24 hours before making your purchase. The initial excitement of getting a deal often wears off, and you’ll be able to walk away from the deal.

3. Subscriptions you don’t use

a Chase study Last year it found that more than 70% of consumers waste more than $50 a month on recurring payments for things they don’t need or want. One of the culprits in this is that people often sign up for free trials and then fail to cancel when the trial expires, said Julie Ramhold, consumer analyst at DealNews.

“These things are put into automatic payment mode, so people don’t realize they’re paying for something they don’t even use,” adds Ramhold. “This is an easy way to get money out the window.”

Waste cutting: Even if your credit cards are set for automatic payment (which is a smart way to avoid late payment fees), carefully review your account statement each month and clear any charges for items or services you don’t use.

4. Food waste

according to Natural Resources Defense Council. While the amount of food your family throws out may be less, we’re all guilty of having to throw away wilted salad greens or the leftovers you brought home after dinner out.

cost reduction: Look in your fridge before you head to the supermarket. Then plan your meals (and your shopping list) around the items you already have. This way you will not only be sure of using these items before they spoil, but you also won’t be sure of new grocery shopping going to waste.

5. Extended Warranties

While extended warranties on your car, appliances, or other electronics may offset the cost of future repairs, it’s not always a big deal for consumers, according to Ramold. Sometimes the cost of the plan exceeds the cost of any potential repairs, or it doesn’t cover the problem you have, Ramhold said. Additionally, many credit cards include extended warranty coverage for some purchases, so you may be paying for coverage you already have.

How much emergency savings do I need?

Waste cutting: Instead of paying for an extended warranty, consider directing your extra money toward an emergency account that you can use to cover the cost of repairs, should they arise. If you already have a fully funded emergency account, you may be able to skip these expenses entirely.

6. Overpaying for insurance

Like most other services, the cost of home and auto insurance usually goes up over time, but if you’ve been with the same provider for several years, you may want to shop to see if you can find a better rate.

“New customers are getting deals with new customers,” said consumer savings expert Andrea Warach. “You may be able to find a policy that offers the same or better coverage for less.”

Waste cutting: Check online sites like Zebra.com or Policy Genius for insurance quotes. If you are satisfied with your current coverage and provider, you may be able to use these quotes as ammunition in negotiations for a better price.

Other ways to lower your bill: Combine home and car insurance with the same service provider or increase the discount rate. By doing these two things, Woroch said she was recently able to reduce her insurance bill by $1,100 per year.

7. Credit Card Interest

How long will it take to pay off my credit cards?
High-interest debt and credit card fees cost American families an average of $1,000 a year, according to Consumer Financial Protection Bureau. While credit cards can be a useful tool, they also become an expensive burden that can cause your money to run low when you have a balance.

Waste cutting: If you’re in debt, focus on paying off your existing balance and putting your cards on ice for the time being.

“If you’re having trouble with credit card debt, it’s probably a good time to put the card away and use cash instead, or use a debit card,” advised Ramhold.

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