Is Saving Money Possible In Today's World?

Darshak Rana

[Disclaimer: The information provided here is for educational purposes only and does not substitute for professional financial advice.]

Do you want to finally stop overspending for good?

Here are some simple money blunders to avoid that actually cause you to pay more than you spend.

Buying a new car

The fragrance of a new automobile is tempting, but the expenses might deter you. Plus, your car's value drops as soon as you drive it off the lot — anywhere from 10% to 20% in the first year.

The solution: Buy a trustworthy secondhand car if you need one. You'll save money and have cheaper monthly payments.

Making minimal credit card payments

Making merely minimal payments is a financial no-no.

For example, a $5,000 credit card with a 19.9% interest rate requires a 2% minimum monthly payment. That is $100 the first month, $99 the second, and so on.

At that pace, paying off your credit card will take 65 years and almost $22,000 in interest!

Using the identical example, a $125 monthly fixed payment will pay off the debt in slightly over five years (assuming you don't reuse the card).

You'll still owe $3,274 in interest, but your older self will appreciate the savings in time and money.

Having costly hobbies is a luxury

There's nothing wrong with a round of golf or a couple's dancing lesson, but it's crucial to think about the whole expense of your leisure activities before committing to them. Expenses such as registration fees, equipment, and transportation have a tendency to mount up rapidly.

To find a solution, consider activities that are in accordance with your financial constraints and seek ways to save money. For example, if you enjoy golf, you may consider purchasing secondhand equipment.

Purchasing coffee-to-go on a daily basis

A daily cup of coffee might cost you $10-$50 per week. When you multiply this by 52 weeks in a year, the cost rises between $520 and $2,600.

And keep in mind that this amount does not include the coffees you might buy during your lunch breaks or on weekends.

A simple answer is to get a travel mug, prepare your coffee at home, and try adding vanilla or cinnamon to your hot cup of coffee to make it more special.

If you have store-bought coffee, get a coffee card and set aside $25 every month.

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