Tough economic times are causing a shift in the way we spend money. In recent years, many households have cut back in order to build stronger bank accounts and protect themselves during uncertain economic times. Wasted money equals lost opportunity – a trait that does not mesh well with responsible savings.
No matter the climate, mastering the ability to spend wisely is an invaluable skill. Read on to learn about how to transform common money-wasters into instant savings.
Gym membership. Estimated annual cost: $720.
Yes, fitness is important. No, it doesn’t have to cost money. Achieving good health is an admirable goal, but who says it requires an annual fee? There are plenty of ways to exercise at home without sacrificing funds from your budget. Websites like bodyrock.tv offer free training with no equipment required. If you lack motivation, consider an average savings of $720 as a start. Invest your cash in a long-term plan and burn calories in your living room.
Unused vehicle. Estimated annual cost: $1,500.
While your home may boast a three-car garage, purchasing three inhabitants is not always practical. Vehicles require thousands of dollars in yearly maintenance, insurance, and registration fees. If your family can survive with fewer cars, why waste the extra cash? Consider selling your unused vehicle and investing the money in a savings vehicle. Similarly, use your budget surplus to pad your savings account or contribute to a 401(k) or IRA plan.
Credit card/bank fees. Estimated annual cost: $300
Banks and other creditors provide an undeniable service, but should consumers be forced to pay? While many argue that high interest rates should cover their creditor’s overhead, several businesses continue to charge an annual fee for service. The average customer is likely to pay $300 per year for an active bank account and two lines of credit. Before signing on for unnecessary expenses, shop around for a reputable credit provider that offers free service. Why pay a fee to spend your own money?
Warranties. Estimated annual cost: unlimited.
We’ve all been asked the dreaded question at the checkout counter: Would you like to purchase an extended warranty? Insuring big-ticket items is wise, but how much is too much? Is a $50 warranty worth the expense of a $150 phone? If your item comes with a warranty attached, determine the benefit of additional coverage. Will it save you thousands in damage, or would you likely break even? The answer will help you stand confidently in the checkout line.
Service. Estimated annual cost: unlimited.
The unknown is a powerful force, one responsible for many signed checks and wasted dollars. Is your sink clogged? Be like most sloppy spenders and pay a plumber $100 an hour to fix the problem. Is your computer running slow? Cast it aside and purchase a newer model. Ignorance can result in needless expenses.
The good news? Ours is an information generation, equipped with countless sources of knowledge and inspiration. Before deciding a job is too big to handle, give the internet a try and put your novice skills to the test by learning how to fix it yourself. The result could save you money and bolster your self-sufficiency.
About the author: This article was provided by CreditRepair.com.