50 Ways You’re Throwing Money Away

50 Ways You’re Throwing Money Away

By Sabah Karimi  November 3, 2020

Tweak your habits to keep more money in your pocket.

You probably don’t realize all the ways you’re wasting money and leaving free money on the table — and these little missteps can add up to big dollar losses. Fortunately, once you’re aware of these bad money behaviors, you can take steps to change them. Making small tweaks to your lifestyle and spending habits could pay off in a big way.

Keep reading to find out the costly money mistakes you’re making — and how to stop making them so you can keep more money in your wallet.

Throwing Money Away on Layaway

While layaway might seem like a sensible way to hold onto something you want to buy, it’s not always a smart way to net savings. That’s because layaway locks you into a certain price and — if ultimately financed by a credit card — additional interest charges.

Not Using a High-Interest Savings Account

Having a high-interest savings account can help you grow your money and build an emergency fund more quickly than with a traditional bank account — so if you don’t have one, you’re leaving free money on the table.

The average savings account interest rate is 0.09%, according to the Federal Deposit Insurance Corp., but high-interest savings accounts can offer rates that are much higher — easily reaching over 1.00%, which is quite a difference compared to the average rate.

Trying To Time the Stock Market

When stocks are on the rise, it’s tempting to think you’re smart enough to know when to get in and out to make a killing. But this move is one of the worst mistakes rookie investors make.

Experts say it’s nearly impossible to do this correctly every single time. After all, you need to be right twice — when you get out of the market and when you get back in.

Ignoring Refurbished Goods

It’s easy to dismiss refurbished electronics as rejects or factory failures. The truth is, many items are returned for trivial reasons, like being the wrong color. Even then, manufacturers subject these returned projects to rigorous tests. And the difference in price between refurbished and new usually starts at 10% and can be as much as 50%.

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