Major Money Wasting Traps

America is a society obsessed with consumerism. What that means, in simple terms, is that Americans love to buy, and buy, and buy. In spite of all that buying, however, they constantly complain about not having enough money and not being able to make ends meet. Many of these complainers don’t even realize just how much money they’re wasting on simple things. In fact, you might not even realize how much money you waste. If you’d like to have more moo-la (and who wouldn’t?), then read on to learn about some of the most common money-wasting traps and how to avoid them.

Trendy Drinks  

Admit it. Some mornings, you nip off to the coffee shop and buy a $5 drink with a fancy name. And, while those drinks might taste good, they aren’t doing your wallet any favors. Sure, you can

rationalize that it’s only a few dollars here and there, but that money adds up quickly. As hard as it is, get out of bed a few minutes early, brew your own coffee, and watch your money multiply.

Credit Cards

There’s a little number at the bottom of every credit card statement, a little number known as the “minimum amount due.” And, while it’s true that the stated amount is all you have to pay, it’s not all you should pay. If you only ever pay the minimum amount, you can expect to see your interest rates go up, causing you to have to pay even more in the long run. This could easily lead to you getting behind on your payments, which could mean accumulating even more charges via late fees. Don’t fall into this trap; always pay at least a little bit more than the minimum amount and always, always pay on time.

Insurance

Home insurance. Car insurance. Health insurance. The list goes on and on, and the truth is, you actually do need all of these different types of insurance. That doesn’t mean, however, that you should overpay for them. Always do yourself a favor by shopping around to find the lowest insurance cost with the best coverage. There are good deals and lots of discounts out there, but you have to be proactive about finding and securing them.

Overdraft Fees

It’s incredibly important for you to keep a “tight rein” on your bank accounts. You need to know how much you have in your accounts at all times and then keep track of your balance as you spend. One little mistake could mean you end up getting slapped with an overdraft fee for each and every purchase you make without having the funds to cover it. Those overdraft fees wrack up pretty fast and cause you to literally just throw money away. Don’t let overdraft fees deplete your earnings.

These are just a few of the many, many ways in which average people waste money. Chances are, you’re guilty of a few of them yourself. And, even if you’re not, you likely have some other expensive vice, like smoking or going out to restaurants too often. Whatever your bad habits are, recognize them and then make an effort to stop them or at least curtail them. Your wallet will thank you!