Most people go through the day without really thinking about the three dollars spent here or the six dollars spent there. Many times, the items you buy on a daily basis seem innocuous, but do you really know how much you are spending? It could be a lot more than you think. These everyday expenses could end up costing you a couple hundred dollars each month. If you are using your credit cards because your income isn’t covering your expenses, cutting out at least one of these five common debt traps can help keep you out of debt.
1. Morning Java Run
If you make a coffee run every morning and think that the five bucks you spend during the work week for a venti coffee and scone aren’t putting a dent in your pocket, think again. That’s $25 a week or an extra $100 a month you could be putting towards you savings or to pay off a bill. It may seem like an innocent addiction—but add up the costs. You would do better having a coffee at work or making your own at home. Trade the scone for a breakfast bar bought in bulk at the grocery store; it’s lighter on your wallet and your waistline.
2. Constant Trips to the Store
This habit can really wreak havoc on your pocketbook because every time you run to the store you might pick up extra things you don’t need and before you know it, you’ve spent fifty dollars! In order to avoid this pitfall, try to stock up on necessities once a week and also try to limit the amount of stores that you shop at. Shopping in bulk will also help prevent you from constantly running to the store. Try to stock up on all of your essentials in one trip. For example, many grocery stores have several aisles devoted to toiletries, medicine, cosmetics, and household cleaners.
3. Bad Habits
Tallying how much you spend on cigarettes, shopping, alcoholic beverages, candy, soda, or any other bad habits can help you to break them. You may think you are only spending five dollars a day on cigarettes, but if you looked at the entire picture, you would see that you are actually spending almost $2000 per year. That’s a large chunk of money that could be used for a nice vacation, saved for retirement, used to help pay off your mortgage or save for a house! Figure out what your bad habit is and break it. In addition to living a healthier lifestyle, you could save a bundle! Plus, find out how much you have been spending and put that money in a separate account for something fabulous.
4. Money Traps and Saboteurs
Money traps are those places that beckon you to spend money every time you go there—your personal weaknesses. For some people its clothing stores, for others its bookstores, home stores, or department stores. Everyone knows their personal weakness. For most people it is a good idea to stay away from the mall entirely. It is not a coincidence that most of the money spent is during the holiday season. While shopping for others, many people also load up on things for themselves because they can’t resist the temptation. In general, you should go to the store if absolutely necessary, do not bring any credit cards, and set up a budget for yourself beforehand. This will help you greatly. During the holidays you can order your presents online to cut down on any spendthrift urges that may grab you while you are shopping at the actual store.
Saboteurs are friends or family members that always encourage you to spend more money than you should. They may make more money than you or they simply just live an extravagant lifestyle that might be beyond their financial means. Whatever their reasons, do not fall into the trap. If they suggest an expensive restaurant, tell them that the place is outrageous and you would rather go somewhere else, suggest something that is more economical. If you have to go to the expensive place, you can save money by splitting a salad and an entrée with someone else. Or, if there is no one to split with, order a cup of soup and an appetizer, this will save you the calories and the bill. In addition, limit yourself to one glass of wine, cocktail, or beer. Insist on paying for the cost of your meal plus tip for that meal. If they try to pressure you into splitting down the middle, let them know that you chose that particular meal because of the price and that you don’t feel comfortable paying beyond that amount. Let the saboteurs know that you are on a budget and sticking to it! You might inspire them to do the same.
5. Going Out to Lunch
Bringing your lunch to work everyday can cut down on those expensive lunches, save you on gas, and allow you to eat healthier. Many people spend approximately $5, $10, even $20 dollars a day on lunch. This could means you are spending at least $25 per week on your lunch. However, if you are eating out everyday, you are probably spending about $50 per week. A good alternative is to start bringing your food. Bring snacks that you have bought in bulk, such as apples, nuts, or bars to eat throughout the day, so that you are not spending 70 cents per item on the snack machine food. Bring frozen entrees, sandwiches, or leftovers from the night before for your lunch. By the end of the month, you will see that you have saved quite a bit of money because you didn’t eat out.
About the Author:
John H. Tran has worked in the debt management industry for approximately ten years and sits on the board of several corporations.
