At Super-Advice we are about all things financial, but more importantly, helping people understand so they can get ahead financially.
Today we are talking about twenty-six things poor people blow their cash on and how to manage that.
This is part two.
Unnecessary tech upgrades
Frequent replacements and upgrades of gadgets. Gadgets are fun. Like we say, if you can’t pay cash up front, dial your expectations down. Remember, this won’t be forever, just while we build wealth for a couple of years.
Expensive coffees
Daily purchases accumulate over time. I bought a pod machine in the first level 4 lockdown. It cost $125 delivered. My coffee costs have dropped from $6 per drink to $1. So worth thinking about.
Lottery tickets
Waste of time. Regular spending with little and usually no return. Open up a Sharesies account and invest that money instead.
Talk to us if this interests you.
Brand name groceries
Higher costs compared to store brands over time. People consume forever, so this is a huge saver. See if you can catch people being judgy at the supermarket while you fill your trolley, loaded up with value brands.
Paying for convenience
This includes delivery fees and convenience store markups.
Convenience costs. Sometimes it’s okay, but it’s a good place to save though.
Fast fashion
Frequent replacement due to lower quality. We’ve all done it. Don’t go too cheap as it usually ends up costing you more in the long run.
Subscriptions you don’t use
Monthly fees for unused services. If you budget, you’ll know this. Otherwise, audit your bank statement to ensure no sneaky subscriptions are in there and shouldn’t be.
Impulsive purchases
These can vary. But frequent impulse buying adds up. Maybe delete the shopping apps. This can help.
This is really a pure discipline play here. If you keep slipping, learn discipline techniques and YouTube is very helpful here.
Excessive gifting
The cost depends on the frequency and the value of the gifts. But this habit is a slip up, however it comes from a good place. We are sure the recipients of your generosity won’t mind if you ease up a little.
Kids will mind, but probably not adults.
Expensive beauty treatments
Regular high end treatments can be costly. If we can tune the treatments down temporarily while we build an emergency fund, Then you can start them up again afterwards.
Neglecting preventative health care like the dentist
This can lead to higher medical costs in the long run.
Try a small regular payment to your dentist as an example. Then the money is always there for your annual check up. And the money’s there if you need any additional work like fillings and that. And hopefully you don’t.
Extended warranties
These are often unnecessary and add additional costs. for products.
Would you like fries with that? That’s how we sort of see the extended warranties. We never take them.
Loans to friends and family
This constrain relationships and these loans are often not repaid. Learn to say no. Once you have an emergency fund, you can, if you like, lend money to your friends and family, but it’s not recommended.
Don’t lend to anyone if they’ve not fully repaid any outstanding loans and learn to say no.
That’s a wrap
It’s important to note that you can save money in all sorts of different areas in your life, and with this list of things, do a check and see where you can relate, to start swapping, saving, and changing things so you can reach your money goals.
If you need any financial help or advice please get in touch with us at Super-Advice.
