1. Expensive Cell Phone Plans: Is it even possible to buy a phone without internet capabilities that is actually just a phone? Smart phones can make life easier, but for a family I see many people who have cell phone bills the size of a decent car payment. The most common reason for this is that they are paying for cell phones for several children. There must be a limit to what you spend on your cell phone. Solutions? There are many. One would be not to buy your kids cell phones. Let them know if they would like a cell phone they need to earn the money to pay for it. This will teach your kids how to be good with their money. Or, if your kids must have a cell phone and could not possibly work, have them share one. No reason for a car payment cell phone bill in 2012.
2. Eating Lunch Out: It never ceases to amaze me how many people eat lunch out every day. In addition to the havoc that this can cause to your waistline, going out to lunch every day is a seriously expensive habit. People always want to tell me that it is ok because each lunch only costs them $5-10 per day, which is equal to $150.00-300.00 per month. That is out of control. That means in one year that you are spending $3600.00 just on lunches. Married? It doubles to $7,200.00. Have 2 kids in school who buy a lunch? It would mean spending about $9,000.00 per year on school lunches. If that isn't enough to convince you that the time spent each night packing lunches isn't worth it I don't know what would.
3. Health Clubs Sometimes. Ok, this is a touch subject that I have to watch because I could get hypocritical pretty fast.....because I spend a LOT of money for my gym membership. However, I go 4 to 6 days per week and have been working out at that frequency for my entire adult life. So my "sometimes" here goes for those of you who don't stick to working out. As it is New Years many gyms are packed with people who those of us who work out all year hate. We sit around and wait until February when the crowd at the gym has thinned and then are really happy at the end of March when all of those "New Years Resolution People" have left and the gym is no longer splitting at the seams. So, if you are using your gym all year long I think it ok to spend money (so long as you can afford it). Lets face it....staying healthy for as long as possible will save you a lot of money on health care in the long run. However, if you aren't using your gym membership (like so many do not after March), get rid of it because it is an unnecessary expense.
4. Storage Units: Ok, if you are in the process of attempting to sell your house and had to de-clutter you get a pass. But if you are paying $100.00 per month for a storage unit just because you have bought so much stuff that it doesn't fit into your house you are wasting money. Why not have a garage sale and sell the extra stuff or put it on Craigslist? If it is in storage it can't mean that much to you in the first place so why not eliminate this expense while at the same time making some extra cash.
5. Coffe: The average foo foo drink at Starbucks is like $5.00 and is full of sugar. See the reasoning for number 2, but I see so many people spending so much money on Starbucks that I thought it deserved its own number.
6. Overpaying for Cable: Okay....I am not to the point where I am going to tell you that you should cancel cable (unless you are not making ends meet). But many people pay too much for cable. If you have extra channels like HBO, Showtime, etc, you are paying too much. Regular cable at my house has at least 100 channels. If you can't figure out something to watch on 100 channels turn off the TV and find something productive to do. Also, call and negotiate with your cable company about once a year to make sure you are getting the best rate.
7. Stop buying crap. Since this is extremely vague, let me elaborate. I am talking about little things that are so cute and you buy them to display or for a joke or just because it was a dollar. I am thinking St. Patrick's Day decorations, Halloween decorations, kitchen plates just for Easter, a bowl of pine cones to set on a random table in the dining room or generally anything that requires dusting that is not a piece of furniture. I am always amazed at the amount of pointless crap that most American accumulate that is virtually useless, but which they paid for. If you don't believe me pay attention to how much stuff you throw out next time you move. The little things add up....plus your next move will be easier without this stuff.
8. The latest and greatest in gadgets. Somehow I have managed to survive as an adult in our society without an i phone, an i pod and i pad or a GPS. I actually don't even have the internet at my house. Although some may find this shocking I really don't mind. I have a smartphone and it allows me to find the same information as all of these devices. I don't know if my cell phone is 4G and I don't care. This year resolve to yourself that you are not less of a person if you do not go out and get the latest and greatest cell phone the moment it comes out. Instead, use your old crappy cell phone until it breaks into pieces and smile about how much more money is in your bank account.
9. Stuff for your kids. Kids are cute and we like to make them happy. But for both your sake and the sake of the kids there must be a limit to what you spend on them. Getting your kid into horseback riding, for example, may result in the need for a second mortgage on your house. Budget your children's activities and set a limit for each child. Tell the children the limit and let them choose which activity(ies) are the most important. Again, this teaches children that there are constraints on what they can do due to money and they will focus on the activity or activities that make them happiest.
10. Tobacco. This is so common sense that I almost left it off of the list. But if you are trying to cut something out of your budget in 2012 I'd go for that thing that you are paying to kill you and to cost you a lot of money in future medical bills. It is also something you can cut out that increases the likelihood you will live long enough to see your children get married and have children. I think it is actually smarter to gamble the amount of money you are spending each month on tobacco than to buy tobacco. Although gambling could also be on this list.
What are some dumb things you can think of that we spend money on? Have suggestions on how to spend less money on dumb things? Post your thoughts to comments!
P.S. I think I need to add fake nails as #11. No reason to spend $25.00 every month on keeping your fake nails looking nice. Instead buy a bottle of nail polish for $8.00 that will last you the year.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
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