12 Careless Ways You Waste Money Every Day (and How to Stop)
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Who doesn't waste money? We all pay too much at times because we want something right now.
And on occasion, if we’re being honest with ourselves, we buy things we don't really need.
Sometimes, though, we aren't completely aware of all the ways we're throwing away money.
Here are some common ways people waste money, and what you can do instead.
1. Paying Too Much for Car Insurance
For many, car insurance is just one of those things where we cave in and pay. Because, just like the electric bill and phone service, we need it, right?
Yes. There’s no getting around car insurance, unfortunately. But one way you could save money is by shopping around and comparing rates at least once a year. Less than 50% of us do that, according to this survey from The Zebra, though 81% of us report wanting lower rates.
So, just like you compare the prices of flights, shoes and laptops before purchasing, why not compare car insurance?
The Zebra, an online car insurance search engine that offers “insurance in black and white,” compares your options from 204 providers in less than 60 seconds.
If you don’t drive a lot, here’s another strategy for paying less for car insurance: An insurer called MetroMile lets you pay by the mile.
If you aren’t spending as much time in the driver’s seat, you shouldn’t have to pay as much. For example, if you only drive 5,000 miles per year, you could save $500, according to MetroMile’s calculations.
Approximately 65% of drivers overpay on car insurance to balance out those who drive a lot, according to MetroMile. It's ideal for people who drive less than 30 miles a day or about 200 miles a week.
A few things to keep in mind:
- Your car must be a 1996 or newer to qualify.
- After signing up, the company will mail you a free device that plugs into your car and tracks mileage (that's how it saves you money!)
Find out if it’ll help you save by snagging a free quote.
2. Not Saving Money on Every Gallon Pumped — Automatically
If you’re a savvy saver, you probably already use GasBuddy to help you find the cheapest gas station in town. It’s an easy — and free — way to avoid overpaying.
But once you pull up to the pump, here’s something else you can do: Swipe your Pay with GasBuddy card to automatically save 10 cents per gallon on your first purchase (and 5 cents per gallon after that).
The free discount card is tied directly to your checking account. It works at 95% of gas stations throughout the country, so you don’t have to drive around town just to find “your” station. Plus, you don’t have to wait for a rebate — it’s immediate savings.
Simply and securely sign up through GasBuddy. Connect your bank account, enter your address, and GasBuddy will put a card in the mail.
3. Facing Your Debt on Your Own
Got a big tax bill? Medical expenses? Moving to a new state?
Wondering how to pay for it? Well, it’s probably way easier than you think to apply for a personal loan — just make sure you know you can repay it.
A good resource is consumer financial technology platform Even Financial, which can help match you with the right personal loan to meet your needs.
Even searches the top online lenders to match you with a personalized loan offer in less than 60 seconds. Its platform can help you borrow up to $100,000 (no collateral needed) with fixed rates starting at 4.99% and terms from 24 to 84 months.
4. Using Dirty Electricity
If you just want to be greener, you can use your energy bill to support renewable energy.
With renewable energy company Arcadia Power, you can offset your monthly energy consumption with 100% renewable sources in about two minutes.
Arcadia Power matches each kilowatt-hour of power you use with a kilowatt-hour of wind energy. Basically the company purchases certified renewable energy certificates in your name, so others can take advantage of clean energy in their area.
When you sign up your home or apartment (yup, renters are eligible, too!) with Arcadia, you’ll get a free $20 Amazon gift card.
5. Trying to Keep up With the Joneses
Picture this: You’re sitting across from your longtime friend at the local diner. You catch up on life, then, because you’re curious, you ask your friend about her income, her student loan debt and her savings.
How many of you just cringed?
Most of us don’t have friends — or even family members — who are willing to talk explicitly about these numbers.
Status Money is an app that allows you to anonymously compare your financial situation with your peers without asking those awkward, prying questions. Link an account to tap into this database and you’ll be able to compare your income, debt, interest rates, credit score, spending… you name it.
By seeing how others are doing, you can see what you need to work on — or where you can sit back a little and just breathe easy.
6. Waiting for Money Until Payday
Want to get a jump on payday? Let Chime be your secret weapon.
Unlike most banks, this online bank won’t wait until your pay date to get your money. As soon as it receives notification of a direct deposit from your employer, it immediately posts those funds to your account — up to two days before payday!
7. Paying List Price When You Shop
If you're not earning cash back when you shop, you're basically missing out on free money.
We know it sounds strange, but Ibotta will pay you cash for taking pictures of your grocery store receipts.
Here’s how it works: Before heading to the store, search for items on your shopping list within the Ibotta app. When you get home, snap a photo of your receipt and scan the items’ barcodes.
Plus, you’ll get a $10 sign-up bonus after uploading your first receipt.
Don't feel like leaving home? No worries. You can earn cash back online when you shop through Ebates, a cash-back site that rewards you nearly every time you buy something online.
We love it around here, because it’s an instant way to save on everything you buy. For example, Ebates gives you 10% cash-back on online purchases at Walmart.
Plus you’ll get a free $10 gift card to Walmart for giving the site a try.
To earn your gift card:
- Sign up for Ebates with your email or Facebook account.
- Use the Ebates portal the next time you need to buy something. It’s connected to thousands of stores, including Walmart, Amazon and Target. You’ll need to make your first purchase through the site within 90 days and spend at least $25.
- Your account will be credited with rewards points you can cash in for your $10 Walmart gift card.
8. Forgetting to Compare Prices
If you don't compare prices every time you shop online, you're probably missing out on a lot of deals. Thankfully, there's an easy way to get compensated when a better price is available — without keeping 100 tabs open on your browser.
One of our secret weapons is called Paribus — a tool that gets you money back for your online purchases. It's free to sign up, and once you do, it will scan your email for any receipts. If it discovers you’ve purchased something from one of its monitored retailers, it will track the item’s price and help you get a refund when there’s a price drop.
Plus, if your guaranteed shipment shows up late, Paribus will help you get compensated.
9. Overpaying for Monthly Bills
On the phone with your cell phone or internet provider, trying to haggle a lower monthly bill?
Go ahead and hang up. (We know you’re probably listening to crappy music while sitting on hold, anyway.)
Download TrueBill, an app that’ll negotiate your bills, cancel unwanted subscriptions and refund your bank fees.
After downloading the app, create an account and link your bank account and/or credit cards. Turn on the bill negotiation and outage protection features. Boom. TrueBill is already searching for potential refunds — it might get you a refund even when you didn’t know an outage occurred.
10. Leaving Electronics Plugged in
Leaving lights on when you’re not in a room is an obvious waste of money.
But in addition to turning off your lights, you might want to unplug some devices. That's because many of them use power even when they're switched to “off.”
Calculate what these energy vampires cost you with online tools, such as this one from Duke Energy. For instance, leaving your digital cable box on (even when the TV is off) eats $23 in electricity each year.
Need more incentive? California residents can earn extra money by syncing their utility accounts to an energy-saving program called OhmConnect and agreeing to help reduce energy usage a few hours each week.
We talked with one San Diego resident John Hastie, who’s made more than $400 in one month through the platform.
11. Ignoring Your Credit Card Debt
Once you fall behind, you may find yourself getting crushed by credit card interest rates north of 20%. You’ll never catch up that way. You’re spending so much on interest, you’ll never pay off your balances.
If you’re financially treading water like this, it might be worth consolidating and refinancing your debt.
By refinancing an existing loan, you’re taking out a totally new loan, which comes with new terms and (ideally) a lower interest rate. By consolidating your existing loans, you lump all your debt into one big payment, so you’re only making one payment and dealing with one interest rate per month.
Make sense but don’t know where to start? Credible is an online marketplace that offers consumers personalized loan offers. It’s best for borrowers who have good credit scores (think: around 640 or higher), andit lets you quickly compare rates without visiting a bunch of sites.
Rates start at 5.99%, and you can check yours by entering a loan amount here ($500 to $40,000) and comparing your personalized options in under 90 seconds.
12. Forgetting to Protect Your Home and Belongings
If you have homeowners or renters insurance, you might be paying too much for it. Try shopping around.
If you’ve never looked into it, start by getting a free quote.We recommend the online insurance company Lemonade, through which renters insurance starts at $5 a month and homeowners insurance starts at $25 a month.
Beyond affordable rates, Lemonade adds a layer of transparency you don’t often see in the insurance world. Instead of profiting extra when it doesn’t have to pay out claims, the company keeps a set 20% of your premium for itself, and 80% goes into a pool for paying claims. Money left over after paying claims each year goes to a cause of your choice.
That also means Lemonade isn’t going to be super stingy about granting customers the claims they deserve — ’cause the money isn’t going into its pockets.
Lemonade is available in Arizona, California, Connecticut Georgia, Illinois, Iowa, Maryland, Michigan, New Mexico, New York, Nevada, Oregon, Pennsylvania, Texas, Ohio, Rhode Island and Washington, D.C.
OK, so now that you know Lemonade has your back, here’s how to get a free quote. It’s easy — and you can do it all online. (Nope, it won’t hurt your credit score!)
- Click “Check Our Prices.”
- Get to know Maya, Lemonade’s chatbot. She’s nice and will ask you a few questions.
- Once you complete the application, you’ll receive a quote within a minute or two.
It’s easy-peasy, lemon-squeezy. Plus, at the end of the day, you’ll feel better knowing your hard-earned belongings are insured. After all, when life hands you lemons… (OK, we’re done.)
Bonus: Not Earning Rewards When You Spend Money
Next time you’re at the checkout counter to make a purchase, you could use either a credit card or a debit card. Either choice has pros and cons.
Many credit cards offer perks like cash back or travel rewards, but they also make it easy to rack up debt. If you don’t pay off your balance every month, you’ll wind up paying a lot of interest. And if you miss a payment, there are late fees.
Debit cards don’t usually offer cool rewards, but they won’t get you mired in debt either. It’s pay-as-you-go spending. The debit card is linked to your checking account, and you can’t spend money you don’t have.
Wouldn’t it be great to combine the best of both worlds? Now you can.
A new app called Debitize basically turns your credit card into a debit card, for free. With it, you can connect any credit card to a checking account.
Whenever you swipe your credit card, Debitize pulls the same amount of cash from your bank account. It stores the cash for you until it’s time to pay your credit card bill. Then it pays that bill for you a week before the due date.
The best of both worlds: You can build credit and get those sweet credit card perks, and also prevent yourself from running up unmanageable debt.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He tries — tries — not to waste money.
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