Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.
We’re all for the occasional splurge — provided, of course, that you can still pay your bills at the end of the month. But there are a few indulgences that are completely not worth it. Are you guilty of any of these financial sins?
- Paying ATM fees. Walking a few blocks out of your way to an in-network ATM will save you as much as $5 every time you need cash (between fees incurred from your own bank and the ATM transaction). If your bank doesn’t have any ATMs in your area, consider switching to a local bank that does.
- Convenience fees for tickets. Ticketmaster and its clones get away with murder for charging you massive surcharges on your concert and sports tickets — even if you print them out off your own computer. You could save more than 20 percent in fees if you buy them directly from the venue box office.
- Hunting down the cheapest gas. A rule of thumb: If you routinely drive more than 10 minutes out of your way to save 10 cents per gallon of gasoline, you need to revisit the concept of opportunity cost.
- Buying bottled water. Speaking of gas, did you know that a gallon of bottled water costs more than a gallon of fuel? Only gas doesn’t run freely from the kitchen faucet.
- “Free shipping” deals. Beware any site that offers free shipping with a minimum purchase: Such offers are designed to get you to spend more than you intended to and make you think you’ve saved money. And e-commerce sites like Zappos.com may offer free shipping on every order, but almost everything is a few dollars above MSRP when you compare the prices to other websites.
One Comment
I think most people would agree that saving money is something “easier said than done”. Personally, I believe it’s a mind-set that needs to be developed by creating good money-saving habits.
Here are some things I’ve done to help change my spending habits:
- Cooking more at home ? Eating out is very expensive especially if you do it a couple times a week
- Shopping online ? You can find better deals than in the store and you save on gas (I recommend http://www.shoptivity.com)
- Paying the full balance on credit cards each month ? Interest charge is like giving away free money
- Don’t forget to pay yourself ? Set up an online savings account (they pay higher interest than a normal savings account)
- Setting a budget and goals ? It’s good to have your goals written down so you see them everyday and don’t lose focus on your ultimate objectives
Again, saving money requires a lot of patience and hard work. However, you’ll thank yourself later on in life. Good luck everyone!! =)
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[...] Savings and checking accounts. A savings account is probably the very first account you ever opened — perhaps back when going to the bank meant a free lollipop. These linked accounts are the simplest way to put away money and have access to it when you need it. Just make sure you’re not accidentally draining it by paying overdraft or ATM fees. [...]