While your finances depend on your income, it is certainly unnecessary expenses that are impoverishing you without realizing it.
Why? This is because when we talk about personal finances, we usually focus on how much we earn, and not on what we spend.
Do not think that your current situation is due to the little you earn, but to how badly you invest what you have.
Now, in terms of expenses, we cannot deny that life insurance is important, that there is nothing wrong with giving us certain tastes, that we should enjoy life; and that while we have to be careful with our expenses, we must also look for alternatives to earn money.
However, certain unnecessary expenses impoverish you, which once eliminated or modified, will forever change your finances (if you ignore them they will continue to impoverish you, and the worst thing is that you don’t even realize it).
Unnecessary expenses that are making you poor:
After publishing this article, we realized that many other unnecessary expenses that affect our finances were missing.
This is why we decided to supplement with other unnecessary expenses that the community of Entrepreneurship Stories complemented in the comments.
So thanks, all your contributions resulted in this content that will undoubtedly help people improve their finances and learn how to achieve their financial independence.
1. Television cable:
How many television channels do you frequently watch 3, 5 … maximum 10? Why do you need 120 channels, movie packages, and how much benefit do they offer you extra?
Cut out your television cable plan. If you are an inveterate consumer of movies and series consider Netflix, a much cheaper alternative.
Are you one of those who pay for channels in High Definition without at least having a TV with these conditions? Or worse, you don’t know how your cable plan is armed?
Check your bill and see if you are consuming this service to the fullest, if it is not, adjust it or eliminate it.
2. Bank fees:
Did you know that every time you withdraw money from bank tellers, they are charging you a commission? Did you know that each bank withdrawal you make by check has an additional cost? Or did you know that on some occasions, by paying with your credit card, you save some consumption taxes?
You have several alternatives: There are banks that charge cheaper bank commissions, make contests for people who use the card or who do not even charge you commissions.
Research how much they charge you at your branch and analyze what options you have with other banks, in this way you will avoid unnecessary expenses and you will have available capital to use it in other valuable things.
3. Extended warranties:
These guarantees are those that you offer when you buy products, usually of technology, and that additionally protect you.
While it is important to take care of your purchases, some extended warranties are not simply a waste of money.
Apart from being expensive, its terms and conditions (which you have never read!) Have countless clauses that leave you unprotected.
The best solution is to be careful with your belongings and keep the warranty that comes with the product by default.
We are not saying stop paying rent or live on the street. The only question is whether that luxurious apartment in the most exclusive and expensive sector of your city is worth it.
If you change apartments for a smaller one and in another location, you will not only stop spending money on an expensive lease, but you will stop thinking about how to fill those empty spaces that require money.
Finally, if you are paying very high installment fees, consider buying a mortgage and buying your first home. It is preferable to pay fees that will have a return and not a lease.
5. Telephony and internet data:
How many minutes, messages and internet data do you have each month in your cell phone plan? Do you consume them all? Do you know at least how many you have?
Why not look for one that is more in line with your consumption habits, find another company that provides the same service for a lower price or cut services that you do not use?
Now, if you are one of those who do not have a plan but recharge your line every time the resources run out, I invite you to make accounts and see that a monthly payment is much more profitable and not something sporadic.
6. Online shopping:
Online stores are one of the biggest enemies of your finances. Most of the purchases you make there are unnecessary expenses and they are impoverishing you in an accelerated way.
Not only are the shoes, clothes, and accessories, they are also the premium services you buy and never use. Also, these purchases come with shipping costs, which we rarely consider and that increase the value of the invoice
Solution: The next time you go shopping for something online, ask yourself if you need it, once you answer, wait a day to make the purchase. This way you avoid compulsive purchases that you don’t need.
7. Fast food:
Fast food, restaurants, and office lunches are enjoyed more, the less often they are repeated.
If every 8 days you are eating hamburgers, pizzas, and Chinese food on the street, you are not only ending your finances, you are ending your physical health.
There is nothing wrong with eating on the street from time to time, eating out with your friends or at a special dinner with your partner, but if this becomes part of your routine it will not only become something without grace but it will They will affect your finances.
The same goes for homes if you are thinking of ordering food from your home. The invitation is that you develop healthy habits that contribute to your quality of life.
8. Life insurance:
Life insurance has nothing wrong, moreover, they serve to protect the future of your family members. The problem is with the type of life insurance you are paying.
Regardless of the one you are going to choose, remember that its value will depend on your age, the risks you take and other factors such as your health and family.
The suggestion is that you look for alternatives, such as your credit card, which offers insurance for being a cardholder, or pension funds that assure you for having an account with them.
If you’ve never done an analysis, you’re probably paying for an expensive plan, or a plan that protects you from risks you don’t run or that offers services you don’t use.
Do the task of investigating first to make a wise decision.
9. Expensive gifts:
Love, friendship and affection are not demonstrated by the price of your gifts, that simple. A gift of thousands of dollars will not show how much you love a person.
If what you want is to impress others with your “breadth,” you are invited to continue impoverishing yourself at the expense of expensive gifts.
Also, the love of your life will not love you depending on the number of zeros your gift is worth; And if you do so, it is time to reconsider if you are the love of your life.
Alternative: Do not fall into the trap of turning your relationships into a simple exchange of expensive gifts. Consider giving away experiences better, you are worthless, and they are appreciated over time, while things are losing their value.
10. Lottery tickets:
The fact that you play the lottery not only implies that you have unnecessary expenses that are impoverishing you, but it also shows that you are not in control of your projects.
Why? Why do you expect, miraculously, to be rich? You are not doing anything about it to achieve it beyond buying a ticket and expecting your luck and a few numbers to do the job.
Are you thinking that the only way to get rich is to buy the lottery, and if you don’t buy it, you can never do it?
How sad can be the fact that your wealth depends on a raffle, and not on your actions and decisions? In short, buying the lottery is not only taking away your money, drawing by lot, but it reflects your lack of a millionaire mindset.
I invite you to review our ebook Rica Mind, where we teach you how to develop the mentality indicated to improve your finances. Remember that the amount of money you have in your bank account is nothing more than the result of the thoughts you have in your mind.
11. Cafes, lattes, and cappuccinos:
How much money have you spent on 3-dollar coffees? In my particular case, many (this is a point that I must review in a particular way).
Having a good coffee in a pleasant space is worth it, but its enjoyment is inversely correlated with its consumption habit. That is, the more times you do it, the less you enjoy it.
Do the following accounts:
- With two coffees that you stop buying on the street, you will save enough money to buy a bag of coffee and prepare it at home.
- The coffee you consume for a month on the street is equivalent to an inexpensive coffee maker to prepare at home.
- And finally, the money you spend on street coffee for two months is equivalent to a specialized coffee maker that prepares the same latte and cappuccino you are buying.
Remember that there is nothing wrong with enjoying these pleasures of life, I love a latte, but when you do it every day, it stops being a pleasure and it impoverishes you without realizing it.
These include magazine subscriptions, surprise gifts, monthly payments to gyms, among others that you never use. For example:
- You are subscribed to 2 or 3 magazines that you just leaf through and have access to your articles on social networks.
- You pay a monthly fee at the gym which you visit less than 15 times a month.
- You are subscribed to things you do not use, which are automatically charged to your credit card, which you pay and do not even pay.
You work to pay for things you don’t use, or if you do, it’s partially. If you want to pay for a gym, earn that right with constancy. Pay a week and if you go every day, pay a month, if you go most days pay the next.
With the theme of magazines, stop throwing away your money if you are not going to read them. Simply do not renew the subscription and access this content on their websites or social networks.
The other 25 unnecessary expenses that impoverish you
13. Have a television in each room.
14. Having the lights on all day in places that we do not need in our house.
15. Every weekend visit shopping centers and end up buying unnecessary things, which you don’t need, out of boredom.
16. Transport by taxi when you can take the bus, bicycle or walk. You can also share it with coworkers, or college students, so that fuel costs reduce.
17. Having a bad health habit like cigarettes.
18. Buy things you don’t need in catalog magazines simply to help who is selling it.
19. Buy items just because they are on offers. You are not saving 20%, you are spending 80% on things you do not need.
20. Alcohol consumption is not only bad for your health, but it is also bad for your finances.
21. Constant departures with friends to places like discos and clubs where they sell you only the brand.
22. Send your pets to luxury daycare centers, where they provide “special care”.
23. Traffic fines. The mere fact of not respecting the traffic laws a year have to take hundreds of dollars out of their pockets.
24. Buy lunch at work instead of bringing food from home. The juice or soda they buy instead of buying it in packages and taking it to work every day.
25. Buy new cars. These are devalued too much. A car loses 25% of its value in its first year. In 3 years they lose 46% (almost half!) Of their value. Better, buy a little used 3-year car for half of what it would cost you new.
Dave Ramsey, a recognized financial advisor, shows how buying new cars is one of the biggest reasons why a person does not become rich.
26. Not knowing how to make a monthly budget. Almost no one does, and at the end of the month, they do not know how their money went. You have to keep track of expenses, all written in advanced. If you do that, you will easily realize your financial gaps.
27. End consumption on credit. The problem is not only interest but having things that surely when you stop using you will have to continue paying months later.
An alternative is to have money for emergencies. With 1,000 dollars (in the United States) it will be enough to get you out of most of the emergencies that can leave you, and thus you avoid using credit cards.
28. Any type of purchases you make on impulse and without planning.
29. Buy branded products (especially in food). Instead, you should opt for less known brands but more economical and of similar quality.
30. Buy electronic devices or devices that will not be used frequently.
31. Do not worry about looking for new ways to save water (such as recycling water from the washing machine for later use such as bathrooms).
32. Go frequently to restaurants or public places for luxurious, expensive and sophisticated meals.
33. Buy high-end phones at fees. When you finish paying them, they are no longer worth 20% of their commercial value, and better equipment with greater benefits and at a very low price has already been released.
34. Take the car as a guarantee of the brand, you can go to authorized workshops and make maintenance much cheaper.
35. Change your computer, telephone or any electronic device because you are craving, while it is still working.
36. Buy books that you won’t read, that you keep in your library and make you feel bad because you don’t keep your promises.
37. “Take advantage” of discounts on the internet, promotions, “cyber promotions” or any invention that takes your money out of your pocket.
Develop a mindset of abundance and review your expenses:
In short, deciding to abandon these unnecessary expenses that are impoverishing you without realizing it will make your finances improve considerably.
Many other unnecessary expenses impoverish you without realizing it, which one would you add to this list? How are you wasting the money that so much work costs you to get?