Wednesday, July 30, 2014

Don't Overspend: Seven Unexpected Things Americans Spend Too Much Money On In Retirement

One of the best ways to save money is to cut down on unnecessary expenditures. Instead of removing significant items from your family budget, simply cut down on spending in several areas to achieve the same result. Here are seven unexpected things that Americans spend too much money on.

Home Appliances


People have a habit of buying the most expensive thing they see at the store, or the newest model. This often means that they pay over the odds, when a significantly less expensive version of the product would perform the same function. Toasters, fridges, blenders, food processors, juicers and grills are examples of such items.

Clothes


While it can be tempting to buy clothes that have just come out at the best stores, they will cost a fortune. It is better to wait until items are on sale, buy everything you need, and repeat the process six months later. This will allow you to buy great clothes for yourself and your family at a fraction of their original price. You can also consider shopping at outlets for discounted prices on quality clothing that won't wear as as quickly.

Food Outside of the Home


Americans spend a great deal of money on food away from home on a yearly basis. It was estimated that the average household spent $2,500 a year on food outside of the house in 2009. While there is nothing wrong with eating out, proper food budgeting can save a lot of money. Families should decide how many times they will go out to eat each month and stick to that number. Eating out at work on the weekends can quickly add up. 

DIY Car Repairs


Being handy is usually a matter of pride for most people. However, patchy repairs and incomplete DIY car jobs often cost more money than hiring a professional. Replacing or fixing a transmission, for example, should be left to the experts, say the professionals at Minit-Tune International Corp. It's important to know what you can handle yourself, and when to take it to a mechanic to save on extra parts on repairs.

Credit Card Interest


A recent study showed that an American household owes $15,000 in credit card debt on average. This means that most Americans are paying huge amounts to credit card companies in monthly interest. To avoid this expenditure, it is best to pay off each credit card transaction within 30 days. Don't overspend and make payments on time to avoid extra fees. 

Expedited Shipping


A surge of online retailers, such as Amazon, means that many Americans buy their supplies through the internet. Buying online can often lead to savings on most items, but it also results in unnecessary spending on expedited shipping. There is nothing wrong with ordering one or two day shipping if you need an item urgently, but most people only do it so that they do not have to wait an extra few days. People surprisingly waste a lot of money with this type of shipping, especially around the holidays and birthdays. 

Gift Cards


Remarkably, it is reported that around $40 billion in gift cards was unspent from 2005 to 2012. With Americans spending a lot of money on electronics, home appliances, clothes and gifts, it is staggering to think that so many potential savings are being thrown away.

If you analyze your family's yearly budget, you will probably find that you are overspending on a few of these categories. By making incremental cuts to spending, you can lower your spending and still enjoy a similar standard of living.

3 comments:

  1. Yes, we can save on many items if we want to do so. There are on several bills the expenditure on which we can drastically cut down on. Take your electricity bills and your telephone bills. Small and simple things like making a habit to switch off the light when you leave a room and cutting down unnecessary telephone calls etc. can make a big difference.

    ReplyDelete
  2. Very good advice to save money. Today it called "lifehack" :)

    ReplyDelete
  3. It will be great if every person in USA would spent more money for health, not for cars, food and property. This is just my opinoin

    ReplyDelete

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