If gas prices and inflation are cutting into your budget, here are some things you’ll want to cut out. These are costs that financially successful people rarely waste their money on!
Although playing the lottery can be a thrilling experience, your chances of winning are close to zero. According to this article, your odds of winning the Mega Millions are about 1 in 176 million. Even if you’re playing in a single-state lottery, like the California Super Lotto, your odds only increase to 1 in 42 million. Bottom line: While it can be fun to buy lotto tickets, this is not an investment strategy.
You might assume that you can’t avoid bank fees, but you have more control over them than you think. However, you’ll have to do your research and ask the right questions. When you pick your financial institution, ask about maintenance fees, ATM fees and other charges. Look for banks that allow you to open an account with little money and have no minimum balance requirements.
Late fees are also something that you should avoid, as these can cut into your savings and hurt your credit score. Consider automating your payments so that you never pay late. This is the best way to avoid both late and penalty fees. Not to mention, just one late fee can cause you to lose any promotional rates on the card.
Credit Card Interest
While it’s best to pay for things upfront, there are times when you’ll have to pull out the plastic. But, be careful about accruing interest. Buy only what you know you can pay off when the statement comes, and if you have a leftover balance, try moving it to a credit card with a zero percent introductory APR. And, make sure that you pay off your balance before any promotional period ends, otherwise you’ll have to pay back interest.
Generally speaking, extended warranties don’t give you much bang for your buck. Instead, it’s better to utilize the manufacturer’s warranty, as you might have more coverage than you think. Also, consider the costs of potential repairs versus what you’ll pay for the warranty. Oftentimes, it’s cheaper to pay for the repair than a full warranty.
By cutting out some of these unnecessary expenses, you can better manage your money and make it work for you! Now is also a great time to enlist support from a financial advisor like Leonard Financial Solutions. Contact our financial experts today for an appointment!