Beware of These 5 Little Known Budget Traps

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Money managementDon’t throw your hard-earned money down the drain.

A lot of people commit budgeting mistakes since most of us lead extremely busy lives and don’t have the time or the energy to track where our money goes. Worse, more than 25% of Americans have no emergency savings while 67% of those who manage to save some money only have less than 6 months’ worth of savings, according to a 2014 annual survey conducted by Bankrate.com.

To put an end to this unwanted situation, here are some of the most common money drains you need to watch out for.

Cable subscription
Considering the fact that all the major shows offer live streaming soon after they are aired and that you only watch a handful of channels, there is really no reason why you need to pay for a cable subscription. If you want to watch a show that you can’t access on your TV, you can always check out the network’s website and watch them for free.

Digital subscription
In the same manner, subscribing to a number of online services such as online newspaper and ebook subscriptions, music services, gaming sites, and dating sites can easily add up and cost the average American an additional $156 each and every month. So, take some time and think if you are really getting your money’s worth by subscribing to these online services. If not, then maybe it’s about time you cancel them.

Unlimited memberships
While buying unlimited membership for a product or a service that you actually use may seem like a great deal, it would just be a terrible waste of money if you don’t actually use it. So, it’s either you use it or you ditch it. It’s your choice.

Overpriced grocery items
Avoid buying grossly marked up items in your local grocery store since they can cost you a lot of money. As a rule, avoid buying pre-cut meat and pre-sliced produce since these items are marked up by up to 60% and 35%, respectively. Buying brand name spices in your local grocery store is also a big no-no since they can be about 97% more expensive than those offered on sale at a natural foods store.

Brand name medicines
You can save up to 80% to 85% by buying generic medicine. They are just as effective as brand name medicines so why go for the more expensive option?

There are still a lot of things that may be causing you to lose money. Take a careful look at your spending habits to see if there are areas that can still be improved.