Save More Money By Wasting Less

For example, some families have cut back on things like going out to the movies, eating out at restaurants, attending concerts and sporting events, going on vacation, and buying fancy “toys” like new cars and big-screen TVs. While these can be great ways to cut back on expenses and increase savings, another strategy is often overlooked: eliminating wasteful spending habits.

Following are 4 areas where many people often waste money without even thinking about it.

1. Paying ATM fees— Automated Teller Machines have become ubiquitous in the U.S., and Americans have become so accustomed to using them that they sometimes don’t think about the cost of this convenience. But avoiding ATM fees is usually relatively simple: Don’t use ATMs that aren’t affiliated with your bank.

Most banks don’t charge a fee for their customers to use their ATMs, but the average charge for non-customers is now $2.40, according to Bankrate.com. Plan ahead before heading out if you think you’ll need cash to make sure that your route takes you by a no-fee ATM.

2. Paying credit card interest— Credit cards are one of the most expensive forms of consumer financing, but they’re also one of the most common ways consumers borrow money. This may be due to their convenience—it’s often easy for many people to obtain and use credit cards.

A smart way to use credit cards is to be sure to pay off the balance in full every month before the due date. This way, interest generally is not charged, and the credit card becomes a free short-term (typically 30 days or so) financing vehicle.

3. Not using energy efficiently— There are many things you can do to increase energy efficiency and not waste money on utility bills. On its website, the federal government’s Energy Star program lists such ideas as changing the air conditioner or furnace filter every three months, tuning up the HVAC system once a year, using a programmable thermostat, lowering the water heater thermostat to 120 degrees, using Energy Star light bulbs and fixtures, and turning off home electronics and appliances when they aren’t in use.

To help avoid wasting money on gasoline, be sure to keep your tires properly inflated (not too high or too low), removed unused items (like sports equipment, for example) from your trunk, and don’t use premium gasoline unless this is recommended by your automobile’s manufacturer.

4. Not using gift cards— It’s somewhat surprising that about $6 billion in gift card value goes unused each year, according to TowerGroup. Think about it: This is free money that many people are literally throwing away.

Many gift cards now include expiration dates after which time the value on the card begins to decline. So if you have received gift cards that you haven’t used yet, go back and check the expiration date—and then be sure to spend them before they expire or you forget about or lose them.

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates,Inc. (DLA). This material does not constitute an offer or recommendation to buy or sell securities and should not be considering in connection with the purchase or sale of securities. Member FINRA & SIPC.