Sometimes, it is easier said than done when resolving to save money. Some people don’t know where to start whereas others think they are making the right moves but are actually throwing more money away then they could imagine. In this week’s blog, New Era Debt Solutions reveals the 5 ways you could be throwing money away without realizing it and what you can do to fix it.
1. Ignoring Gas Prices
When you rely on your own transportation, you may think there is no getting around expensive gas prices. Just because the using of a different payment method usually only varies slightly in cents doesn’t mean it can’t cost you several dollars. Over time, those dollars build up and you can be throwing money away on gas that could be in your pocket instead. Some credit cards offer rewards and cashback on your fuel purchases, which can put more money in your pocket at the end of each month.
2. Spending Time Around the Wrong People
Think about. We’ve all been there before. You set out for the mall because you need one item, but your shopping companion encourages the worst in you, causing you to spend more money on unneeded items. You cannot be expected to drop your friends or family to save money, but you can choose to interact with them in a different setting where you know you won’t dig yourself further into credit card debt. Choose your shopping partners wisely!
3. Being Too Prepared
Going to the store with a list is a great way to keep you focused and save money, but there is such a thing as being too prepared when it comes to throwing money away. For instance, just because there is a deal on an item you can buy in bulk, doesn’t mean you need to purchase it. Consider if the cost is worth it in the long run. A few minutes spent on math could save you much more down the line. Also, ask yourself if the item is needed for an emergency or if you can do without it.
4. Ignoring Fees
Whether they are bank fees, credit card fees, or any other hidden cost embedded into an account, make sure to read the fine print before you sign up. Hidden fees are not always a one-time cost and can appear month after month. Being whimsical will not serve you well in these situations. Ask questions and be prepared to know what you are paying for before the charges begin, or else you may be throwing money away unnecessarily.
5. Using Free Trials and Memberships
Most companies are starting to offer more free trials, which gives you a great opportunity to determine if you really need something and the extra monthly cost that comes with it. The one danger with free trials is that the bulk of them require credit cards or some form of payment, so they can begin charging you after the trial is over. Unless you remember to cancel the free trial, you can start throwing away precious dollars that you may not ever see again. Not all companies are as forgiving when it comes to refunds. Set reminders on your phone to cancel any trials you sign up for and keep track of them in your records to effectively manage your spending.
Remember to make the most of your memberships as well. As memberships come with monthly fees, it is important to only pay for the ones you actively use. Get rid of the ones that go unused and start saving money!
FAQs on Throwing Money Away
Is It Illegal to Throw Away Money?
In the United States, it is illegal to damage or destroy currency, and while the law may not say directly that it is illegal to throw money away, tossing any U.S. currency in the trash will likely be treated as destroying the money.
Under Title 17, Section 333 of the United States Code, the U.S. Bureau of Engraving and Printing states that “Whoever mutilates, cuts, defaces, disfigures, or perforates, or unites or cements together, or does any other thing to any bank bill, draft, note, or other evidence of debt issued by any national banking association, or Federal Reserve bank, or the Federal Reserve System, with intent to render such bank bill, draft, note, or other evidence of debt unfit to be reissued, shall be fined under this title or imprisoned not more than six months, or both.”
If you do happen to be caught destroying U.S. money, you may receive a visit from the Secret Service who enforce this law, be fined, or even face jail time.
Is Renting Throwing Money Away?
A common goal among many Americans is to own their own home. Paying money into a mortgage loan is a form of investment that may yield returns in the future. On the other hand, renting is often considered to be throwing away money because money is being put toward someone else’s property investment, not your own. Compared to making mortgage payments, paying rent to simply live in a property can be money that you may never be able to see a return on.
Ready to Stop Throwing Money Away?
Are you ready to start saving money and make your debt disappear? Contact one of our friendly counselors at New Era Debt Solutions to find the debt relief option that fits your needs and budget. We will show you how much time and money you can save.
