By Liz Costa
Do you find yourself asking ‘where did my money go?’ Unfortunately, we tend to spend money in ways we don’t realize are wasteful.
You may feel you don’t have enough money because you don’t make enough, but maybe you’re feeling that way because you’re spending too much.
Wasteful spending isn’t something many are easily conscious of. It creeps up on us for a variety of reasons over time and becomes a habit we fall into year after year. Choices lead to habits, and if those habits aren’t working for you, then they’re working against you.
If you want to make sure you’re getting the most out of your money, you need to know where you waste it most.
The biggest culprit for wasteful spending is…. food habits! Here are some tips to curb some of that wasteful spending:
1. Throwing food away – how many times do you find yourself buying so much food, stuffing the fridge, then a week or so later, you’re tossing a lot of it right into the trash? This is arguably one of the biggest wastes of money out there. If you want to stop the waste, this is the perfect place to start.
What to do? Make a food plan. Take time to line up recipes for each meal, make a list of the ingredients and buy ONLY those. Planning meals ahead of time will keep you organized and insure you’re going to be using all the food you bought and not just throw it in the garbage. I’ve done this personally myself, and my husband and I cut our food bill in HALF. It works.
2. Spending too much on dining out – You work all day and come home, without having anything planned, the next best thing is to order something out or go to dinner. The problem with doing this often is that meals can be expensive. Everything from the dish to the drinks and then, of course, there’s the tip and tax. You pay more for one meal than it would cost to make a few meals at home. This is a habit that can contribute to a lot of waste.
What can you do? Make a meal plan. Schedule meals and add a line item in the budget for the dining out that way you can spend money on dining and won’t feel the guilt of wasteful.
3. Impulse purchasing – This one is personal because many people often buy for emotional reasons. If you buy more than you plan for, you’re impulse shopping (yes, even for food).
What to do? When you shop in person, shop with CASH. Go with a list and don’t buy anything that’s not on the list.
4. Buying brand name items when generic may work just as well – Many brands give you a great value for their product. This is just an example where people waste money without realizing it. Sometimes brand names are the most expensive option and as a result you could spend 20% – 30% more on a brand name purchase when a generic would work just as well. This one is really about value and if you’re paying a lot more money for something that isn’t any more valuable, it might be a waste.
What to do? Research the items you usually buy and compare the difference on whether the price adjustment is worth it or not. Many generic items, especially when it comes to food, have the same ingredients. Do some research and pick items wisely.
All these items can really be curved with a budget. Budgets keep us from spending money on unnecessary items. For more information on how to set a budget, check our Triangle’s YouTube channel, Budgeting 101.
