common money mistakes to avoid

Common Money Mistakes To Avoid

Making common money mistakes can a big issue, there aren’t many resources to help you, and there are so many bills to pay.

Most people don’t care enough to keep track of their bad financial habits. Working hard isn’t enough anymore, in today’s world, especially if you live in the United States, unnecessary spending can be draining your wallet.

Here are some ways to help prevent making these common money mistakes, and to assist you in becoming financially free!

Common Money Mistakes At Dunkin And Starbucks

Out of all your common money mistakes, this one might be the toughest to break. After all, how-ever will your day be the same without your daily fix of coffee? While I am guilty of indulging in daily caffeine consumption myself, this doesn’t mean I go out spending unnecessary amounts of cash on specialty coffee drinks.

Moreover, even a regular small cup of coffee at Starbucks or Dunkin Donuts can add up over time. The $2.25 spent on Starbucks, in addition to a $5.00 latte, converts your saving money into sugary caffeinated drinks.

If you really just want the caffeine high, try making your own coffee at home. Check out 23 coffee drinks you can make at home from food blogger Shay if you’re short on ideas.

I understand that coffee is like our fuel, but that’s exactly what makes it so detrimental to your finances.

Stop Using Amazon

Ok, you don’t really need to stop using Amazon but you do need to rethink how you use it. Amazon is an extremely consumer-friendly online mega-retailer that offers one of the best online purchasing services on the internet.

It’s so effortless to buy something on there that I have actually bought an item off Amazon before without even realizing it. The point is that it’s so effortless and easy to buy things off Amazon, almost too easy. Furthermore, many of the items sold on Amazon can be bought elsewhere at cheaper prices.

Just try to slowly limit your spending on Amazon. However, there are some products that are worth purchasing on there, such as books, essential oils, food, tools, and PC parts. Other items like video games, clothes, phones, and general electronics, can all be found on other sites at fairer prices.

Spend Less On Food

This one might seem a little obvious but I see time and time again people making the same mistakes when buying food. Firstly, you don’t need to be eating out constantly.

It’s fine if you enjoy eating at restaurants every now and then, just limit it to when you go out with friends or family. Similarly, try not ordering delivery or fast food, even if it seems tempting. …. I know, I’ve been there too, starving at 1:00 am and then reaching out to dominos or Mcdonalds to satisfy my hunger.

Stop doing this, not only is it hurting your wallet, but eating fast food is also incredibly unhealthy. Fast food should only be eaten moderately, or on a special occasion.

Avoid Eating Out Daily

Have you ever been tempted to eat at your favorite restaurant after realizing you’re too tired to cook? It can be hard, yes, but you need to realize that eating out every day can seriously drain you.

Prices at restaurants are gradually starting to increase with food costs rising, plus restaurants are having a tougher time paying suppliers, and general expenses.

Not only that but you’re also expected to tip heavily in the United States. This is why eating at home is the best solution. Not only will it be cheaper, but you also have the ability to chose your own ingredients, making the food even healthier!

Stop Wasting Money On Clothes

Yes, clothing can be a big waste of money as well.  I find that Americans tend to spend the most money on clothes due to the large market. Believe me when I say this, however, buying clothes is very fun, and almost exhilarating.

But you can not let the marketing and seasonal trends get to your head. You most likely have all the stylish clothing you need, and you definitely don’t need that $200 Tommy Hilfiger jacket. What you should be buying is a good pair of jeans, shorts, shirts, a few jackets, underwear, and socks.

If you really want some trendy clothing and can’t resist the temptation, then try saving up annually. Try purchasing all the clothes you can during the holiday sales, or even better, just buy out of season; since clothes that are out of season can be found dirt cheap.

These are just some of the ways in which you are spending unnecessary amounts of money. There are definitely more ways that you might be taking the chunk out of your pockets but I find these few to be the most common and recurring. Check out my other post, Psychological Traps To Avoid In The Stock Market, there’s investment advice here but it could also help you if you struggle emotionally when saving money.

Hey there! I'm Alex, a freelance writer, and blogger. I started my journey towards FI in 2018, when I created this blog. I love talking about blogging, writing, personal finance, and internet entrepreneurship. If you enjoy my content, stick around, and we'll share ideas for reaching FI together!

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