No one wants to lose money, but there are parts of life where that waste is unexpected, non-deliberate, and extremely damaging to many people’s financial security. Eliminating financial waste and practicing smart spending habits will do wonders to pad your pockets just a little bit more. Here are some of the most common ways people lose their money.
Paycheck
Your federal withholding on your paycheck is the law, but you are not required to overpay on your taxes. If your tax withholding is too high you’re probably losing an unnecessarily large amount of money each time you’re paid. Lower your withholding so you receive more money in your paycheck and then put that extra cash into a 401k or IRA so it can accrue interest. Not only will you be saving money but you’ll be making it.
401k
If your employer offers a 401k plan then you should try to take to full-advantage of their matching contribution. 401k plans are a great way to make more money for your retirement so take full advantage by finding out your company’s match program and contributing the full amount (if possible) out of each paycheck.
Energy Waste
Energy waste is one of those consistent money drainers that too often go unchecked. TV’s, gaming consoles, DVD players, idle computers, and left on lights can account for large portions of your energy bill. If you’re not using something, unplug it or turn it off. This will save you money and help you practice energy conservation.
Late Fees
In 2014, more than one third of consumers paid late fees. Many companies impose late fees for late payments, which is a huge drain on funds for many consumers. Stay organized and make your payments on time and you could end up with a few extra dollars each month.
High-interest Debt
High-interest debt is an enormous money drain on a lot of people and it’s largely because people don’t bother to do the research or long-term calculations to find out just how much they will be paying back. Do those calculations and inquire about loan refinancing programs. You could save yourself from paying a greater amount in interest than the actual loan.
Little money drains can do a lot of damage to not only your daily budget but your long-term financial goals. Make sure to trim the fat on your unchecked spending by taking a look at your expenses. If you do find you need a little extra help you can always find the fast funds you need at Short Term Loans. Short Term Loans is here to help you get out of a tough financial spot and back on your feet again. Find the loan you need on our website.
