We all are in the habit of wasting money now and then, for example, we often purchase things which we never use regularly. For instance, all of us now and then use to purchase a juicer machine with the assumption that we will enjoy fresh juices every day, but after some time we don’t use it and it is kept in a shelf useless. Often we forget to use free coupons at right time. If we think seriously in this regard, we can find some other ways when there is money leakage. We can discuss some such cases as hereunder.
- Bank fees:Usually banks charge some fees for not maintaining a minimum balance in our accounts. Also, most of the banks use to charge ATM fees, or other fees if you make more with drawls in a month than a fixed number. However, there is no logic of charging these fees because we are simply taking our money from our own accounts. There are many banks such as Ally, Charles Schwab and a bank of internet USA, who offer no frill and no fee account. We should search such banks and switch over to them.
- A free trial period of subscription services:we often subscribe for a free trial of various services, enjoy it, but many times we forget to unsubscribe these services on time and after the expiry of free trial service provider charge the stipulated fee for the next month. This way we lose some money and we should fix an alarm before expiry date to save it.
- Unused memberships:A study reveals that 67 percent of gym membership holders never use it. Now it is time to think about how that money can be utilized in a better way because paying for something which you are not using is not a wise idea even if it is a small amount. You should periodically review all these matters and save some money.
- Credit card annual fees:many credit card service providers offer a sign on bonus for their credit cards; for example spend $ 3000 in 3 subsequent months and avail a free trip to some attractive place. This offer sounds good but often these cards are associated with an annual credit card fees. So it is advisable to do proper math to know exactly, whether you are earning something from these deals or losing your money.
- The trap of free offers:Often we fall in to trap of free offers and unnecessarily purchase a huge amount of articles without real need. Many online marketers offer free deals on purchases from certain brands, stores or hotels to attract us for more shopping, but remain assured that they have done their calculations so well that at the end only they will be benefitted. So never spend money, you won’t spend otherwise, just for something free.
- Food waste: You should not shop for food items in a shopping mall without making a proper plan, because you may shop many unusable items unintently just because they are nicely displayed or come with attractive offers. So always make a list of things of your use and stick to it when doing a grocery shop.
- Balance on your credit card:There is a myth to maintain a small balance on your credit card for maintaining and improving your credit card. Always carrying a balance on your credit card and paying interest over it, is not at all necessary to build your credit score. The best strategy for it is; use your credit card within 30 percent of its credit limit and pay the debts on time and in full.
- Sticking to the initial interest rate on loan: When you avail your first loan the basic interest rate is offered to you. But after successful repayment of your dues in time enables you to get some rebate in existing interest rates. So, at regular intervals, a proper review of interest rate must be observed and all available opportunities must be availed to lower the interest rates on your loans. Refinance from other institutions may also work here.
- Lack of negotiations: The biggest and last method of revenue leakage is a habit of not negotiating with your service providers. In the present age of competition, you can easily negotiate your expenses to cut down because nobody wants to lose a customer.
Deil D Pecci is a writer and blogger based in Chicago who covers topics on personal finance and entrepreneurship. Deil D Pecci has made Chicago her home along with his wife and children.