- Leaving electronics plugged in
- Poor home insulation (raises the cost to heat and cool your home)
- Watering your lawn (consider replacing grass with landscaping you rarely or never have to water)
- Taking long showers
- Inefficient heating and cooling systems
- Outdated appliances — older washer/dryers, water heaters, refrigerator, etc.
Start figuring out where you’re wasting energy in your house by using Duke Energy’s Energy Vampire Tool.
3. Certain types of insurance
Some insurance is largely unnecessary. Such is the case with the “extended warranties” you might purchase when buying big-ticket electronic items or appliances. About a third of consumers buy this expensive insurance, but most don’t end up using it!
Another type of money-wasting insurance is low-deductible car insurance. If you raise your car insurance deductible from $500 to $1000, you will typically save over $100 per year on car insurance, according to InsWeb.
4. Maintaining your unused gym membership
Unless you go to the gym on a regular basis, you should probably cancel your gym membership. And if you pay for a gym membership, the odds are good that you fall into this category of people who should cancel it — Two-thirds of people with gym memberships never use them.
Even if you do use your gym sometimes, you might consider buying some gym equipment to work out with at home instead, as that is not a recurring charge.
5. Not comparison shopping
A lot of people prefer to shop at their favorite store because they simply enjoy shopping there, or think that store always has the best deals. However, for large items or things you buy in bulk, you should always comparison shop to see which retailer can offer you the best deal. For electronics, you can usually find the best deals online rather than in-store. Many major stores will price match a competitor’s price as well; usually including online competitors.
6. Not paying off your credit cards
Credit card interest is probably the no. 1 way people waste money. It’s easy to just put things on your credit card and pay the minimum every month, without thinking about how your credit card debt is ballooning each month that you don’t pay off your balance. An average credit card interest rate of 14.95 percent means that if you carry a balance of $2,000, you’ll pay about $300 each year in interest alone.
We hope this article helped open your eyes to some areas where you are probably throwing away money. Please share it to help your friends and family stop wasting their money, too!
- Dave Ramsey says: Return of premium insurance isn’t best way to spend
- Dave Ramsey says: Build emergency fund, turn down home warranty
- Dave Ramsey says: How to work your way through the Baby Steps plan
- Dave Ramsey says: Mom questions continuing dental insurance for kids
- Dave Ramsey says: Keeping some cash at home in a safe is good option