NEW YORK – Everyone wants to be a baller. Everyone wants to find themselves rolling in dough. But unfortunately, many people make money mistakes that cause them to stay where they are, financially, rather than rise to the top. You might think you’re financially savvy, but you may be surprised. Are you making money mistakes? Read on and find out.
1. Losing out on interest
You need a liquid cash cushion for emergencies, so, you definitely need the money in your savings account, just in case. However, if you’re paying 15-20% interest on your credit card while earning 1.25% in savings you’re losing money. So after you’ve saved enough money for a rainy day, make sure to start paying off those credit cards.
2. Buying new over used
Sure buying something new might make you feel better, but it often doesn’t make any sense. Cars, for example, depreciate immediately after they leave the lot. So, there’s no need to shell out tons of money for the sticker price, when you can buy one that’s only been used for a year, and save yourself a significant chunk of change.
3. Being a “Gadget Addict”
Wasting time in line, and then paying top dollar for the latest gadget, is a major money waster. Being first is an expensive hobby. Just a few months waiting can assure you of getting the same product at a lower price, and one that’s probably been debugged.
4. Insisting on buying into brands
There’s no need to pay for brand name meds when you can get the same thing for a few dollars less. Generic meds have the same exact ingredients as brand name ones, at a fraction of the cost.
5. Buying books
Why pay retail prices for books when you can get it at the library for free? It may seem retro but the library is still around! And your local library has tons of books, and if they don’t have it, they can often order it online.
6. Not investing in retirement plans
If your employer is matching money there’s no reason not to sock money away from your 401(k). Not only are you missing out on saving for retirement, you’re missing out on tax deductions. Imagine that; tax-free income!
7. Paying for water
Water bottles are convenient; but the cost of them adds up. Buy an insulated water bottle and fill it up yourself. It’s not only better for the environment, it will also save you the money.