How to create greater savings.

Securing Your Financial Future

Surveys show that the average adult spends around $1,500 monthly on non-essentials. No wonder many Americans live paycheck to paycheck. What would you do if you put this money into a tax-free account.

Here’s a look at 6 money wasters…and what you can do about them.

 

6 Common Money Wasters

Waste #1:

First is one of the biggest—but also one of the easiest to fix—not preparing meals. It’s okay to eat out occasionally…but too often it’s just for convenience and unnecessary.

A restaurant-prepared meal will cost you three times what you would pay for the same meal cooked at home.

Waste #2:

Upgrading your smartphone when a new one comes out. For example, the iPhone 15 could cost as much as $1,600…or lock you into a long contract if your carrier provides it.

Eventually, a smartphone will have to be replaced…but if you delay upgrading…the more money you keep in your pocket. This year’s red hot phone is next year’s discount model. And you have to ask how smart your phone needs to be.

Waste #3:

Wearing the latest fashion is expensive. By some estimates, the average American spends nearly $2,000 a year on clothing. And in a few months, whatever you buy will probably be out of fashion.

Clothes wear out and need to be replaced…so you must include that in your budget … but those spending decisions should be practical … not a way to boost your ego.

Waste #4:

Buying lottery tickets. The ads say “You can’t win if you don’t play,” You definitely “will” win if you “don’t” play. You’ll get to keep your money. You have better odds of being hit by lightning twice than winning the lottery.

Bankrate says low income earners pay 13% of their income on lottery tickets.

Waste #5:

Auto extended warranties are now a $40 billion-a-year industry…and just an expensive form of insurance you probably won’t need. Do your homework to ensure you’re buying a quality item. Most will have an adequate manufacturer’s warranty anyway. Then, ensure you have enough money in your emergency fund to cover any necessary repairs.

Waste #6:

Your cable or streaming package. If you’re still paying for cable, it could be as much as $200 monthly for Internet and TV. Do you need 568 channels? Keep track of what you’re watching, and if you’re not getting your money’s worth from an app, drop it.