Saving is not a simple task, especially when you always need to spend to cover your everyday life. You might find it difficult to achieve your saving goals if you overlook small actions that unknowingly waste money every day.
 Small actions that seem harmless can significantly impact your savings – Photo: Shutterstock |
The Business Insider recently published an article listing three actions that many people do every day but rarely pay attention to, leading to unintentional money wastage. Below are those actions.
1. Leaving leftover food
According to the U.S. Bureau of Labor Statistics, an average American family spends about $4,000 on food in 2014. Official statistics indicate that Americans typically waste 25% of the food they buy each year.
If you also have the habit of throwing away a lot of leftover food like the majority of Americans, you are wasting an average of $1,000 per year. $1,000 is a significant amount if you think about what you could do with it: pay off debt, save for retirement, purchase necessary items, or achieve short-term goals.
Imagine if you could invest the above-mentioned $1,000 in a year instead of throwing it in the trash. If your investment brings a 6% annual return, which is below the average in the U.S. stock market, then after 20 years, the amount you would receive is $40,000.
2. Upgrading unnecessary electronic devices
Being obsessed with technology makes us spend more than we think. According to a recent survey conducted by Gallup, 44% of Americans switch to a new smartphone as soon as they are eligible, and they typically switch phones once every two years. It is not only mobile phones, but many other technological gadgets also get replaced. With the rapid development of technology nowadays, you will find plenty of reasons to feel outdated when using old electronic devices after only one to two years.
According to a study by the American Institute of Certified Public Accountants, Americans spend about 17% of their mortgage or monthly borrowing for technology items. If someone has a mortgage bill of $1,500, they will spend about $250 per month on buying electronic devices. If you can reduce that number by half, the amount of money you save annually will be $1,500.
3. ATM and banking fees
A study by Tufts University shows that U.S. households collectively lose $43 billion per year on expenses like ATM fees and cash payment services. On average, a family spends up to $1,739 per year just to withdraw cash.
According to Bankrate, an average American pays $4.52 to withdraw money from an ATM not affiliated with their bank. If they withdraw money once a week, they will lose $253 per year. Therefore, before taking out your wallet to spend, you should carefully consider the possible fees incurred. You will be surprised at the amount of money you can save each year just by paying attention to these small actions mentioned above.
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Are you struggling to accumulate wealth? Common mistakes like failing to save money, excessive shopping, and over-engaging on social media may be to blame.
Unnecessary subscriptions can range from magazine subscriptions to multiple streaming services. It’s easy to accumulate these over time and forget about them, so it’s important to regularly review your expenses and cancel any subscriptions you no longer need or use.
Mindless online shopping can also be a money pit. It’s easy to get caught up in the convenience and instant gratification of online shopping, but those small purchases can add up quickly. Always make a list before you buy anything and stick to it to avoid impulse buying.
Lastly, neglecting to cancel free trials can result in unexpected charges. Companies often rely on customers forgetting to cancel, so it’s important to set a reminder to cancel before the trial period ends if you don’t intend to continue using the product or service.
