You should not spend money on everything you see. “Only buy something that you’d be perfectly happy to hold if the market goes down for ten years.” Wise words from Warren Buffett.
There are many ways in which your money gets exhausted unreasonably. There are expenses that we may think are good for us but they turn out to be a total waste of money.
Let us learn how to save some of our hard-earned money by highlighting some of the things that don’t need another dollar from you
- Premium packages
Don’t spend money on these. This is the easiest trap to fall into, which has little benefit to you. Here, the seller will use the premium pricing strategy to try and convince you. Premium pricing strategy is the practice of setting a high price to give the impression that a product has an unusually high quality which in some cases may not be true.
The seller will try to sell you the package mentioning some “perks” like free coffee every 3 months or a Christmas card, which may be a waste of your money. These premium packages are only beneficial on a big scale, but for the average person, they will just drain your pocket.
- Business coaching programs
You will probably have already seen this in many YouTube videos. You click on a video and someone will be telling you how they made their millions, and how they are living their dream, or how they lost their weight. Be very careful about this because they will tell you in order to find out how they did it, you will have to part a lot of money.
It’s usually a bad investment if someone is making money from “how-to-business” programs. Be on the lookout for attention-grabbing captions like:
- earn money by doing this simple thing
- eat this for fast weight loss
DO NOT spend your money on these programs, rather seek out professional, accredited programs with agencies or companies that are certified.
You could look at this in two ways. If someone is asking for payment to be a mentor, then they are not being a mentor for the right reasons.
Also, if someone is buying a mentorship, then they are also not in the right position for that guidance.
Oprah Winfrey once said, “A mentor is someone who allows you to see the hope inside yourself.” Now, having that in mind, do you think paying a mentor will give the same results? A true mentor won’t want payment for the services they offer, instead, they would want to see you prosper and have confidence in your ability to do so.
- MLM schemes
This is also known as Multi-Level Marketing or pyramid schemes. The latest MLM is the sale of essential oils and diffusers with the allure of being your own boss. These schemes attract those who are wishing to supplement their salary, and sadly it never turns out the way people hope.
It is not bad that you want to be your own boss but buying 50 boxes of this skincare range and trying to sell it is not your answer.
Be careful when someone gets in touch out of the blue to catch up over a cup of coffee, be sure that you’ll be asked to buy a lipstick that will never leave your mouth until your death or the essential oils that will cure all sickness under the sun.
- Driving everywhere!
A philosopher, Friedrich Nietzsche once said, “All truly great thoughts are conceived by walking.”
We are hasty to get into our car to drive everywhere, even just to the corner store. It is a habit that needs to be unlearned. You should not be spending your money on unnecessary fuel and repair of your car. Any mile you put on your car is a mile closer to your next service.
Learn to walk. If the place you’re going to is closer to you, then you can walk to that place. Not only will you save money, but you will also have exercised.
- The home you can’t afford
The best term to describe this is house poor. Investopedia described it as “A situation that describes a person who spends a large portion of their total income on homeownership, including mortgage payments, property taxes, maintenance, and utilities. House poor individuals are short of cash for discretionary items and tend to have trouble meeting other financial obligations.”
Buying many houses without financial planning is what brings many people down. If you want to know if you can manage to pay off a property, remember this; your entire mortgage payment should not be more than 28% to 33% of your income.
It is important to buy what you can afford now and avoid going beyond your budget.
- Timeshare holiday programs
you should definitely don’t spend money on this. Timeshare which is sometimes called vacation ownership is a property that has divided ownership or use rights. These properties typically resort condominium units, which these various parties hold rights to use. Also, each owner of the same accommodation is allocated their period of time to use the property.
This area does not need your money since it is an on-going expense. It is easy to get into the excitement about this program but don’t fall for it.
- Being penny-wise/ pound foolish
The store 30 minutes away from you is selling 18 rolls of toilet paper for a reduced price, so you drive to take advantage of this great deal. Think about this, you have wasted fuel, time, wear and tear of your vehicle, plus upon arrival, you will find a long queue all trying to get the same at the bargain price. And then you find that they were sold out.
While you were trying to save a few dollars, you have ended up spending more than what you wanted to save.
- Things you don’t understand
Don’t be so quick to jump on the bandwagon with things that you don’t understand which ends up costly. Get rich quick schemes to come in all sorts of forms and you need to be alert. For instance, there are many Apps that you can purchase that promise to help you invest in the stock market and make you rich beyond your wildest dreams. They are called high Yield Investment Programmes. STAY AWAY!
People are always trying to find ways to make quick money, and there is so much deceiving information online promising a great return on a “small” investment. This may seem like a prospect of a lifetime to the untrained eye, but sadly they don’t usually turn out the way you hope.
- Bulk fresh food buying
Every year we waste 1.4 billion tons of food. We throw out “ugly” looking food, we over the dish and we let some go bad in our fridges. However, when we buy these far-fetched food specials, we are buying more than we can consume. We use just a little and the rest goes to waste.
Buy 2 get the 3rd free! this sounds like a good offer and you end up buying 3 packs of baby tomatoes when you will only consume one pack before the rest goes bad.
- Trying to impress people
Ever heard this quote, “those that care, don’t matter, and those that matter don’t care.” This was originally said by Bernard Baruch. He was an FDR presidential advisor and he used the quote when preparing seating arrangements for dinner.
The words ring true by the way. Why spend money trying to impress people who don’t care about you anyway or vice versa? Don’t waste your valuable time and money on people that won’t even lift a finger to help you when you need them the most. Real friends don’t care about your material belongings, they care about your integrity, your heart, and just you.
- Water and electricity
Using anything in excess equals wastage. Not only does it waste money but the item in question. Every drop that leaves your taps costs you money so make every drop count. In countries that experience droughts, they can attest to how water is rationed in households to 50 liters a day per person. Therefore, don’t spend on unnecessary water usage and the same holds for electricity. Switch off lights, use energy-saving bulbs, or wash your laundry in cold water. This will save you a lot of money.
- Paying for casting calls/ screenings/ potential jobs
If you have spotted these and they ask you to pay to apply, do not waste your dime. The most common of these paid casting calls are for acting jobs and modeling. Here are some tips on how to spot a scam before wasting your time and money on them:
- The advert states that you must use their own photographer for your professional photos. SCAM!!!
- You have to pay a fee before they work as your agent
- It’s a once in a lifetime opportunity, grab it now before it goes away forever!
- Pay in cash ONLY
- Work guaranteed – if not – refund guaranteed.
These are just some of the ways they try to get your money.
- You are cheap
There is a saying that goes “cheap is expensive”. Yes, you might be saving a few dollars primarily, but in the long run it will cost you a lot. This is exceptionally true when you buy things like paint. For example, when you buy cheap paint, you will end up needing to do a few coatings to get good coverage.
So, make sure to make correct buying choices to avoid costing yourself down the line.
- Things you won’t remember.
Have you ever eaten a treat and later realized; it was not worth the calories? This is the same kind of sentiment we are going for here. Why would you spend your hard-earned money on things you won’t even remember? This, therefore, means that you should not spend your money on something, not just because it saves you money, but because it’s just boring and forgettable.
The above points are just some of the things you should not waste your money on, but there are many others. Make sure that before you purchase anything, think of the value it will bring to you. Also, be sure to make good choices when purchasing items and when you spend your money.