5 Ways to Waste Money

I mention so often how to save money in Mrs. Bankrupt posts. Today I’d like to hit on five ways to waste your precious cash.

1. Late fees: If at all possible, pay everything on time. This includes utility bills, cell phones, cable and internet, not just the bank loans that report to credit bureaus. In my own case, my power bill charges a late fee of nearly twenty dollars to pay, “past due”. Habitually doing so over a calendar year adds over $200.00 in fees (which incidentally is 1.5 of my monthly bill). My cell phone is similar, adding a charge of $15.00 for late payments.  Chronically paying bills “just under the wire” adds up quickly.
2. Complacency with creditors: Yes, I love my sprint phone. I love their service, too. I’ve been a customer for over five years, but recently I threatened to nix my account if they didn’t offer me a more competitive package. Suddenly I was transfer to “retention” who wheeled and dealed me a better rate. Also this goes without saying that you should consistently look over plans, such as cable and internet. Great deals when you signed on may now be more expensive than current plans. Typically, no one is going to call you and inform you of better rates, you must do this yourself.
3. Paying for freebies: As a mom of five, I look for free entertainment. It’s on the agenda always. In the summer, investigate park or local events, such as concerts, festivals, etc. In the winter, cart the gang to the library and rent movies or borrow books. Have your friends over for dinner and drinks, with a monthly B.Y.O.B. Alternate homes to host. It’s far cheaper than dining out and buying drinks. You might find it more fun, too. For kids, the same idea holds true. Invite their friends over for a movie and popcorn. Even if you rent a movie on cable, it’s less expensive than a night at the theater plus pricey purchased food.
4.   Not monitoring bills: Never pay any bill without first looking over charges. A friend of mine was the victim of credit card fraud. She did not catch it for seven months because the thieves were only placing a few small transactions a month. These were random $10-$15 items, spaced a few days or weeks apart.  Be very careful with bank account statements, hospital bills, etc. Look over all statements and bills carefully. 
5.   Sitting on money: Don’t be mistaken, there are multiple ways to save money and likewise several means to grow money. If you have any available cash in a local bank, investigate many of the online banks for higher interest rates. Some like Everbank, offer a 3.01 rate for the initial three months, which is then figured at 2.15% APY.  (They do require a minimum deposit, however, of $1,500). Online banks typically offer the very best rates around and are frequently overlooked.

To summarize, it’s the small details that waste money. It takes time to investigate the options, but in the long run, so well worth the time. Time as they say, is money. In this case, it’s your money. Make it count.