50 Ways You’re Throwing Money Away
You probably don’t realize all the ways you’re wasting money and leaving free money on the table — and these little missteps can add up to big dollar losses. Fortunately, once you’re aware of these bad money behaviors, you can take steps to change them. Making small tweaks to your lifestyle and spending habits could pay off in a big way.
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Last updated: Feb. 2, 2021
Throwing Money Away on Layaway
While layaway might seem like a sensible way to hold onto something you want to buy, it’s not always a smart way to net savings. That’s because layaway locks you into a certain price and — if ultimately financed by a credit card — additional interest charges.
Read: 12 Easy, Proven Ways To Get Free Money
Not Using a High-Interest Savings Account
Having a high-interest savings account can help you grow your money and build an emergency fund more quickly than with a traditional bank account — so if you don’t have one, you’re leaving free money on the table.
The average savings account interest rate is 0.09%, according to the Federal Deposit Insurance Corp., but high-interest savings accounts can offer rates that are much higher — easily reaching over 1.00%, which is quite a difference compared to the average rate.
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Trying To Time the Stock Market
When stocks are on the rise, it’s tempting to think you’re smart enough to know when to get in and out to make a killing. But this move is one of the worst mistakes rookie investors make.
Experts say it’s nearly impossible to do this correctly every single time. After all, you need to be right twice — when you get out of the market and when you get back in.
Ignoring Refurbished Goods
It’s easy to dismiss refurbished electronics as rejects or factory failures. The truth is, many items are returned for trivial reasons, like being the wrong color. Even then, manufacturers subject these returned projects to rigorous tests. And the difference in price between refurbished and new usually starts at 10% and can be as much as 50%.
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Closing the Box on ‘Open Box’ Savings
A great way to save money when shopping online marketplaces such as eBay is to see if a vendor has cheaper, brand-new “open box” products, which are returned items that have been inspected and put back on shelves by retailers.
Paying Full Price for Gas
Even though gas prices aren’t at their highest, you might not be taking advantage of free ways to drive the bill down further, such as by using rewards credit cards for cash back. Make sure to pay off your balance every month to avoid interest charges or late fees that’ll eat up any rewards you earned. You can also use the GasBuddy app to find the lowest gas prices in your area.
Paying Full Price for Anything
With bargain sites such as Groupon, it’s a wonder why people shop at stores and pay the manufacturer’s suggested retail price on anything — it’s probably one of the biggest ways you’re wasting money. Take advantage of coupon and deal sites to keep more money in your wallet year-round.
Forgetting Your Company’s Employee Stock Purchase Plan
Your company’s employee stock purchase plan typically works by payroll deduction, with the company converting the money into shares at up to a 15% discount off the market price.
“If you immediately liquidate…
Read More: 50 Ways You’re Throwing Money Away