Making money is not an easy job for most people to do. Even then, more than a third of Americans have credit card debt, which is far more than they have in their savings account, according to a 2019 bank rate report. And if we take account of WalletHub’s recent research on credit card debt, we have reached a milestone as a society that we should not be proud of: for the first time in the history of the world, the United States combined owes more than a trillion dollars – yes, a trillion dollars – of debt accumulated through credit cards 15 TIPS TO AVOID WASTING MONEY.
The above facts only show how good we are in terms of funding. But if you’re looking for the bright side, you can learn from it and become a more financially responsible citizen today. Read on to find out how to avoid wasting your hard-earned money and how to spend your money wisely.
15. BUY AN OLD MODEL PHONE
Buying the latest models of phones is a big waste of money. For example, you can get a Samsung Galaxy S10 for about $900, while the Galaxy S9 – which is practically the same phone – costs about $600! Similarly, if you opt for the iPhone 11, you’ll end up spending about $700. On the other hand, if you opt for a slightly older but equally functional iPhone XR, you can buy it for a hundred dollars less at 600 dollars! Now ask yourself if having the latest model of your favorite brand is worth all that extra money.
14. YOU WILL NEVER HAVE TO PAY THE FULL PRICE OF A PRODUCT OR SERVICE
Food, clothing, airfare, movie rentals, hotel rooms – virtually everything you buy is offered at a discounted price at any given time. Thus, by paying the full price for a product or service, you essentially hurt your own portfolio. To get as much value for your money as possible, you should always take advantage of the special discounts offered on cyber-Fridays and Black Fridays.
13. CHOOSE A HEALTH SAVINGS ACCOUNT
If you don’t know the Health Savings Account (ESC), it’s actually a kind of savings account where you can deposit your money tax-exempt, to cover all your medical expenses. However, it is interesting to note that you can use this HSA card to pay for even over-the-counter products like condoms, contact lenses, laxatives, sunscreen, bandages and even lip balm! Now, if you can get the products at the exact same price, you pay them with your tax-free money.
12. ALWAYS OPT FOR A FAMILY PLAN WHEN IT COMES TO NETFLIX
If you go it alone with your Netflix projects, you lose a lot of money. Always opt for family projects, and share them with a friend or cousin. You can exchange your Netflix password for their Amazon Prime or Hulu password and you both win! While you can consider the $10 as pocket money, over time you actually save a lot of money by simply sharing your password!
11. CREATE A 529 FOR YOUR CHILDREN
For those who don’t know, 529 is a “qualified education plan” that helps you save money for your children’s university education. With this type of savings account, you can easily set aside tax-free money, directly from your salary, to pay for your children’s school fees and other related expenses. While laws can vary from state to state in terms of how much you can actually save through this process, it can range from $240,000 to $529,000 per child – which is huge!