#1 Monthly Subscriptions
Paying for a regular monthly service is definitely convenient. When it comes to saving time and money, services that offer recurring subscriptions deliver both of these. These can be fun items, needed prescriptions, healthy food deliveries, or other types of monthly subscriptions.
From my own personal experience and I hope you learn from my mistake so you can keep your money in your bank account, is to stop throwing it away.
You can do this by conducting a deep dive into your bank statements to review and highlight each service that recurs on a regular basis. The next part is for you to determine how useful, how impactful, and what savings does this service provide you.
During my deep dive, I highlighted a coffee service, which I knew I was paying for, that delivered four bags of coffee monthly to my doorstep. The root problem in this service is not identifying that I had a subscription, but to remind me that I had bags of coffee sitting on my shelf not being drank. Want a present?
ACTION TIME: So I politely emailed the Customer Service asking to have my account to be put on HOLD for two months allowing me time to catch up on drinking my current inventory of coffee. They politely agreed in return! I just saved $60.
The point is to look around and find where you may have some money saving opportunities.
Money transforms lives. Whether good or bad, it can help you live the life you want, if you spend it appropriately.
At my prior investment firm job, I worked with a man in his 30’s who retired with $25 million. Hearing that figured...I’m like what!!! Yes, true story. He retired early and set his heart on traveling with his wife and kids. They bought a new home, a new yacht, new cars, and the works. Fast forward two years and the man had to go back to work. His lifestyle exceeded his finances.
Now compare a simple man living on Social Security who doesn’t have to work anymore. Yes, the two lifestyles are vastly different and there lies my point.
Be conscious about where you spend your money and what you are spending your money on. There is never enough money no matter how much you make and I learned the secret that if you live below your means, you will always be wealthy.
Think back to your first job after college. You weren’t making much but you were excited and ready to start your life. As you get older and move up the corporate ladder, so does your pay. The problem is we unintentionally raise our standard of living.
You have to find a happy medium. At some point, you must conclude that it is time to reduce some expenses around the house. Do you really need that motorcycle, boat, expensive shampoo, or dining room table?
#3 Failing to Review Bills
As more bills are sent to us online, we have a tendency to throw away statements that arrive in the mail--even sometimes never opening these. Humans are not perfect and we make mistakes. When bills are sent to us, they may include errors or overcharges.
If you are guilty of such a financial sin, then you may be throwing away money. An easy tip to save you time is while walking back from your mailbox, open the mail immediately to quickly scan for charges. This will consume no extra time and you are putting your eye balls on the statement to quickly assess for errors.
#4 Overpaying for Insurance
People can be loyal. And odds are you have a bank or investment company that you are loyal to because of friendships or their superb customer service. This happens because when starting out in your early life on the lack of knowledge. Often, you don’t know where to turn. So you ask around and a friend points you in the right direction.
Just like when you are getting an oil change, you have to review and maintain your finances too.
According to Gabi.com, so many Americans are overpaying for auto insurance. Here are Gabi.com’s research data on which companies overcharge. Odds are...your company is on here like mine. Fortunately my company didn't make the top 10.
#5 Not Shopping Around
You just bought something online because it was awesome, cute, or needed. What are the chances you shopped around to compare prices with competitors?
I saved this for the final number because we are guilty of this almost everyday. The next time you purchase something at a gas station, grocery store, or online, ask yourself if there is another item cheaper. If there isn’t, then oh well. If there is, then you can save a lot of money in the long run.
When I browse through Amazon, because I love Amazon, I will quickly compare prices to Target just to see if the store has a lower price. Just a quick tip to help you save money.
Be sure to check out my YouTube video on this and share your ideas below.