7 biggest money wasters
- ATM fees
When in hurry using the closest ATM mashing in your area, rather than the one at your own bank will typically costs you about $5. Your bank charges a fee for using your card out of its network system, plus the ATM maching that you use also charges a fee of $ 1.50 to 2. Imaging that your bank ATM probably won't cost you not even a penny.
2. Lottery tickets
2. Lottery tickets
I know that they say you have a better chance of being struck by lightning than winning the lottery. But that doesn't stop people from trying.
Consumers bought more than $70 billion worth of lottery tickets last year, according to the North American Association of State and Provincial Lotteries. About $38 billion was awarded in prizes.
Consumers bought more than $70 billion worth of lottery tickets last year, according to the North American Association of State and Provincial Lotteries. About $38 billion was awarded in prizes.
3. Gourmet coffee
Spending a few bucks a day at the local coffee bar may seem cheap. But imagine all the money you could save if you simply brewed your own coffee at home.
Americans spend an average of $8.43 each time they stop at a coffee shop, according to data compiled by Mint.com. With caffeine fiends filling up an average of 46 times last year, this adds up to a total annual bill of $385.97.
For daily drinkers, the bill can be in the thousands. Thurber said he has clients who spend nearly $4 on a cup of coffee every weekday morning, costing them about $80 a month. That adds up to nearly $1,000 a year.
Americans spend an average of $8.43 each time they stop at a coffee shop, according to data compiled by Mint.com. With caffeine fiends filling up an average of 46 times last year, this adds up to a total annual bill of $385.97.
For daily drinkers, the bill can be in the thousands. Thurber said he has clients who spend nearly $4 on a cup of coffee every weekday morning, costing them about $80 a month. That adds up to nearly $1,000 a year.
4. Cigarettes
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Not only are they bad for your health, cigarettes are also a cancer on your budget.
Americans spend $80 billion on cigarettes per year, according to the U.S. Centers for Disease Control and Prevention.
Thurber said many of his clients spend about $70 a week, or $280 a month, on packs of cigarettes.
One client quit smoking after Thurber told him that he would save an extra $320 a month (including the money saved on his health insurance at work). He then used that savings to buy a new car.
Americans spend $80 billion on cigarettes per year, according to the U.S. Centers for Disease Control and Prevention.
Thurber said many of his clients spend about $70 a week, or $280 a month, on packs of cigarettes.
One client quit smoking after Thurber told him that he would save an extra $320 a month (including the money saved on his health insurance at work). He then used that savings to buy a new car.
5. Infomercial impulse buys
Only $19.95! Call now and we'll double your order! Such promises have lured in many unsuspecting consumers to what they thought was a great deal.
The infomercial industry brings in about $400 billion a year, according to the Electronic Retailing Association. But it's no secret that many impulse purchases go unused.
Thurber said he has several clients who spend around $200 a month purely on infomercial purchases -- most of which they admit go completely unused.
Logan Sachon, a writer for personal finance site Bundle.com, has spent at least $500 worth of quick-fix products that she never used, including the Magic Bullet Blender, the Topsy Turvy tomato planter, the Perfect Push-Up and Debbie Meyer's GreenBags. And she said another $500 worth of purchases has probably ended up at Goodwill or put in the trash.
The infomercial industry brings in about $400 billion a year, according to the Electronic Retailing Association. But it's no secret that many impulse purchases go unused.
Thurber said he has several clients who spend around $200 a month purely on infomercial purchases -- most of which they admit go completely unused.
Logan Sachon, a writer for personal finance site Bundle.com, has spent at least $500 worth of quick-fix products that she never used, including the Magic Bullet Blender, the Topsy Turvy tomato planter, the Perfect Push-Up and Debbie Meyer's GreenBags. And she said another $500 worth of purchases has probably ended up at Goodwill or put in the trash.
6. Unused gym memberships
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Automatic monthly fees are one of the easiest ways to waste money. And it's not easy to cancel a gym membership when next week is always the week you'll finally begin that New Year's resolution fitness routine.
But gym no-shows are throwing away hundreds of dollars a year (maybe even a month, for some upscale gyms).
Lassus said one of her clients had been spending $75 a month on a gym membership she never used, so she realized it would be cheaper to just buy an exercise bike for her home.
"We all come to the end of the year and say `it's time to start getting in shape,' but we don't think through whether we are willing to make that time commitment and if it is going to be worth the dollars we're spending," she said.
But gym no-shows are throwing away hundreds of dollars a year (maybe even a month, for some upscale gyms).
Lassus said one of her clients had been spending $75 a month on a gym membership she never used, so she realized it would be cheaper to just buy an exercise bike for her home.
"We all come to the end of the year and say `it's time to start getting in shape,' but we don't think through whether we are willing to make that time commitment and if it is going to be worth the dollars we're spending," she said.
7. Bundled cable or phone services
Would you ever want to buy a bundle service from any company for just because it offers a less for the package that just one service, however you don't even use all of the services.
Consumers are often lured into bundled cable, Internet or phone packages because of the reduced rates offered during the first year or a limited period of time. But paying for 500 channels that you're not watching, or unlimited text messages or airtime that you're not using, is just a waste of money.
"People will often just pick the plan they think they can afford, and then they won't check their usage compared to what they're paying for," said Orecchio. "You might be paying for the silver or gold cable package with lots of channels when you're only watching the same 10 channels, and the same goes for cell phones -- you could be paying $100 a month for your cell phone plan and only using $50."
Consumers are often lured into bundled cable, Internet or phone packages because of the reduced rates offered during the first year or a limited period of time. But paying for 500 channels that you're not watching, or unlimited text messages or airtime that you're not using, is just a waste of money.
"People will often just pick the plan they think they can afford, and then they won't check their usage compared to what they're paying for," said Orecchio. "You might be paying for the silver or gold cable package with lots of channels when you're only watching the same 10 channels, and the same goes for cell phones -- you could be paying $100 a month for your cell phone plan and only using $50."
Sources
CNNMoney.com
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