How You’re Mindlessly Burning Through So Much Cash Every Month

| December 20, 2016 | 0 Comments

When you get your paycheck at the end of the month and look at the amount you’re getting paid, you might think that it all looks rather good. But what you can’t quite understand is how all of that money seems to disappear in such a short amount of time. Some months you’re barely making ends meet, others you’re in the red and having to borrow. What’s going on?

The reason you’re blowing through so much money every month is probably down to the following habits.

Waste Energy

According to studies, about 7 percent of the average household’s income is spent on energy. That’s a rather large chunk. But the majority of people are actually spending a lot more than they need to, thanks to a bunch of bad habits. Things like leaving lights on or the fridge door open can severely impact your household bills. The solution is to do things like buy energy efficient appliances and get insulating curtains to keep warm air inside the house.

Wikipedia

Buying Popcorn At The Movies

Movie theatres don’t make their money from ticket sales: they make it from all the junk food they try to sell you at the entrance. That bucket of popcorn you’re paying £5.50 for probably only costs £1.50, meaning you’re paying more than £4.00 in markup. Don’t buy food at the entrance – let everybody else subsidise your cinema experience – and save yourself a bunch of health problems along the way.

Pixabay

Not Planning Meals Ahead

Waste food and impromptu meals out are one of the biggest killers of household finances. It’s much easier to just go out and get a takeaway when it looks like you’ve not got any ingredients in the fridge than it is to improvise and come up with a meal. That’s why it’s a good idea to plan a weekly menu. To make life easier, you can have just one menu that you repeat, week after week, at least for the first couple of months. Having a weekly menu means that you only buy the stuff you need and you don’t have an excuse to blow £30 on take away pizza.

Pixabay

Carrying Over Credit Card Debt

One of the main reasons people take out unsecured personal loans is to pay off high-interest credit card debt. Credit card debt is one of the most expensive forms of debt, and it can have repercussions on your ability to borrow in the future. Try to pay off your credit card debt at the end of the month in any way that you can, or switch to a new card provider that offers lower introductory interest rates.

Ditch Cable

Despite cable’s declining popularity, cable prices continue to rise. It’s all thanks to the fact that fewer people are demanding the service meaning that the costs of operating the service are more concentrated among the remaining customers. Ditch your cable and jump on cheaper services that offer more choice, like Amazon Prime or Netflix.

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Avoid Brand Name Products

Brand name products and generic products are often very similar. Avoid brands, except when you want to treat yourself.

Category: Personal Finance

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