The biggest waste of money for financially challenged Americans

24/7 Wall St. Perspectives

• Many Americans spend unnecessary money every day.
• There are simple ways to cut unnecessary expenses.
• Saving money each month can pay the bills.
• Also: 2 dividend legends to keep forever

One of the biggest “must-haves” of personal finance is having a strong monthly budget on paper. Regardless of what you’re spending, understanding how much money is coming in and how much is going out is fundamental to making sure you’re spending appropriately. For those facing financial difficulties, identifying potential money wasters can be a big help in getting back on track and digging yourself out of any hole.

11. Depreciation of assets

When looking at a car, consider using it for a more economical purchase.

This is a tough one, but instead of buying a brand new car that immediately depreciates in value, be a smart shopper and look at something used and in good condition. Buying a Toyota or Honda instead of a Mercedes or Lexus can save you hundreds each month.

10. Lottery tickets

It’s all too easy to spend money on lottery tickets every week.

The hard truth is that most people will never win the lottery in their lifetime. It’s not even most people; it is more than that, as the odds are often considered 1 in 292 million. Instead of spending $20 a week on lottery tickets, use that money to treat yourself to a meal.

9. Impulse purchases

Stay away from impulse purchases to save money.

Anyone who has used TikTok lately knows that it has become a digital QVC, leading to impulse purchases. If you’re worried about your bills, skip the impulse buy and only buy something when you have some free cash.

8. Starbucks Trips

Brewing coffee at home can save you a lot of money each month.

We’re all big fans of store-bought coffee, but it can easily add up. If you spend about $5 a day, that’s $100 a month and $1,200 a year. Instead, brew your coffee at home and spend a lot less.

7. New food products

Stores like Target and Walmart offer less expensive house brands.

If you’ve ever been to a Walmart, Aldi or Target, its store brands are much more cost-effective. Savings add up quickly; if you’re struggling financially, every penny counts, especially for food.

6. Disposable items

Instead of disposable items, save money with solutions you have around the house.

This is right out of the Dave Ramsey playbook in that you should minimize how many disposable items you buy. Instead of buying paper towels, buy hand towels and the same goes for a reusable water bottle rather than a water can.

5. Luxury brands

Skip luxury brands if you’re struggling financially.

Just like the newest iPhone, everyone wants what’s popular and trending. The good news is that you don’t need fancy pants or shirts when clothes from places like Target or Kohl’s are just as good and a third of the price.

4. Gambling

It’s easy to spend money on fantasy football that offers little return.

Sure, joining your work’s fantasy leagues seems like a great way to keep up with your peers, but it can also be expensive. Gambling should be kept in check if you are worried about paying your bills.

3. Electronic upgrades

Upgrading to the newest devices every year can be a bad use of funds.

There’s something great about having the latest and greatest technology, but it’s not always necessary. You can skip the latest iPhone if you’re pinching pennies. As long as your existing electronics work, you’re not wasting your money.

2. Failure to prepare meals

Meal prep is an easy way to save money each week.

One of Dave Ramsey’s biggest money-wasting offenders is eating lunch out. If you have $15 a day, five days a week, that’s $300 a month ($3,600 a year). Think of all the bigger bills you can pay with that money if you cook at home.

1. Subscriptions/Unused Subscriptions

If you don’t use a Netflix or Spotify subscription, cancel it.

One of the biggest ways to spend unnecessarily is to overspend on subscriptions or subscriptions you don’t use. While cord cutting has been an issue for a while, Netflix, Disney+ and MAX prices have gone up as much as gym memberships. If you haven’t used it in a month, throw it away.

The post Biggest Waste of Money for Financially Struggling Americans appeared first on 24/7 Wall St.