We often see stories of people becoming wealthy with a new startup or signing a new contract with a sports team. But the majority of wealthy people in this country have made their wealth far less interesting stories that include sounds strategies of not wasting money on certain things.
Expenses Successful People Don’t Waste Time or Money On
Lottery Tickets
Yes, if you don’t play you can’t win. But the chance of winning are so small that is it really worth it. Possibly couple dollars every now and again won’t hurt.
Regular spending of money on lottery tickets could be spent else where with far greater utility. $5 of gas can take you quite a distance or probably a nice cup of coffee and provide great enjoyment.
The bottom-line here regular daily or weekly spend on lottery tickets provides for little benefit.
Bank Fees
Not unlike other business banks are in business to make money and so it is understandable they would charge a fee for the services they provide.
The think is there are choices, you are not stuck with accounts that have monthly maintenance fees or have to pay for other bank related charges.
There are many bank to stay competitive that offer savings, checking and money market account with no fees or are subjected to many fees. To avoid these fees you should research bank offerings to see what may suit your needs. In this day and age we are limited to the bank around the block from us.
Interest on Credit Cards
Using a credit card is convenient and can make using them habitual. We don’t open our statement each day to see the accumulation and can u off the consequences for many years.
However, the consequences may be push forward but they still exist and and paying for these charges after months of interest accumulation increases the amount we spend.
We should as a practice pay off what we spend on each month. This avoids the accumulation of small spending each month with compounded interest rates.
Late Fees
The payment of late fees on a regular basis will reduce your wealth. It appears to be small amounts we have to pay, but these amounts add over periods of time.
Wealthy people make a point of paying their bills on time to avoid late fees. One of the simplest ways to pay on time is to auto pay your recurring bills. By doing this one does not have worry about remembering to pay them and they are paid on time each month. No late fees.
Extended Warranties
Purchasing an appliance or piece of equipment you will most often asked this question, “would you like to purchase and extend warranty”. The answer should always be no.
Extended warranty provide very little bang for the buck. You are far better off researching the product to see what the manufacturer warranty covers and for how long. You may find the extend warranty is on little use.
Low-Interest Savings Accounts
Regular savings pay a small amount in interest rates each month, this is especially so because of the low interest rate environment that we are currently in. The national savings account rate is a meager 0.06%, as of Aug. 16, 2021 compared to high interest savings account there is a stark difference.
The truth is that regardless of the interest rate environment high interest savings account will always pay much more and when these rates are compounded each month we can see significant difference over longer periods of time.
To earn high rates we should look to online banks as many offer much higher rates than our local banks. When coupled with sign bonus this can make for healthy savings.
High-End Brands
No doubt many of the high end designer brand product look and feel good but are they worth it. We many times see pictures of celebrity with these items in tow but this is not a representation of the majority of wealthy people.
To stay wealthy you do have to make sensible choices with how you spend your money. And spending $200 regularly on a dress or pants is one sure way to keep you from accumulating and maintaining the wealth you have built.
Instead find brands that offer style and comfort at lower prices.
Excessive TV Channels and Video Games
100 channels that you will never watch or 20 video games that you will never play, what is the point. It is easy to sign up for numerous streaming channels, Netflix, amazon, sling, paramount, Hulu, the list seems endless and they all have programs that are of interest. But do we have the time to watch all of them.
The monthly cost for each seems to be a small amount but when added together amounts to a significant amount each month.
You will find most often that you gravitate to certain channels and programs and best to decide which ones suits you taste better and perhaps try others every now and again to see if they have anything to offer better than what you are watching.