These days, we’re all looking for ways to stem the flow of our cash outlays. Sometimes this can leave you feeling like King Canute trying to hold back the tide. However, in many instances we make very wasteful decisions without really thinking about it.
Here are just 5 drains on your income that you’d do well to avoid:
1 – The Lottery
Frequently referred to as a “tax on stupidity”, lotteries run by both local and national governments offer those optimistic enough to buy a ticket with such phenomenally long odds of winning, they make casinos seem positively altruistic.
Admittedly, if you buy a ticket, you just might win, but the list of things more likely to happen is long and illustrious, including being struck by lightning among many other far-fetched scenarios.
2 – Extended Warranties
Retailers make a habit of offering extended warranties on a wide range of products, however, unless the item in question represents a large investment, purchasing the extra cover is probably excessive. This is especially true of relatively inexpensive electronic items that normally come with a perfectly adequate manufacturers warranty as standard.
3 – Movie Rentals
There is an easy way to avoid paying exorbitant fees to watch feature films, and it doesn’t involve illegal downloading. Simply take a trip to your local library. There you’ll find a massive range of films (as well as books and music) that you can borrow for free.
Indeed, when you think about, you’ve already paid for the privilege of having access to these services, as they are funded by your tax bills. So, Why pay twice?
4 – Razors with Disposable Blades
The blades are by far the most expensive component in your average razor, so if there’s one part of the product you’d want to make a lasting investment in, you’d have thought it would be that, after all, you could use a good electric razor for 3-4 years without ever changing to the blades.
Despite this, people are consistently drawn to razors where the most costly part has to be constantly replaced. You be better off going for an option that is either completely disposable, or not disposable at all. In this instance the middle road simply offers the worst of both worlds.
5 – Rent
Obviously, this is often unavoidable but, when you think about, it’s a big waste of money…
Rent normally feels like a pretty rough deal anyway, with landlords often able to command a hefty price for not a lot of living space. However, the real killer is the fact that, for the huge part of your pay check that you’ll be handing over, you won’t be any closer to owning a home of your own, where as, if you’d been in a position where you could’ve put that money towards mortgage repayments, you’d be well on your way towards the security that comes with property ownership.
About the author: Sam Selby writes about a wide range of personal finance topics, from frugal living, to wise choices with regards to credit.
Credits: Photo courtesy of Dion Hinchcliffe.