Top 3 Ways To Waste Money

Do you waste money?
Yep, me too.
I am just as guilty as anyone else when it comes to buying things I don't really need.

Sometimes, you just have the urge to go out and buy something that you have wanted for a while. It can give you a small sense of satisfaction. It can make you proud of your accomplishments in life. It can make you happy for a little while. It can also wreck your financial future.

Below are the Top 3 Ways To Waste Money:

• Cars

The average person trades in their vehicle WAY too much. Reliable transportation is a must for any working professional, but there is a huge gap between reliable and new. New cars lose an estimated 40% of their value in the first 3 years. Why are you paying for that? Good, reliable vehicles are available for less than $10,000 and they won't "wreck" your financial future.
TIP: If you can't pay cash for the car, do not mortgage your future to own it.

• Gadgets

Are you that guy? You know that guy that just has to have the latest iPhone, and matching watch, and wireless head buds, and sports carrying case, and matching running shoes? Enough already!

Electronics can be a big money waster if you let them. I promise that my $99 cell phone does all the same cool stuff that your new $700 phone does. Maybe it's not as fast doing it, but we are talking seconds here, not days! You can save $600 per year by not buying a new cell phone.

• Clothes and accessories

I love you ladies, but please stop with the $600 purses and the $1000 earrings. I know celebrities do it, but they have more money than brains! Plus, they usually have someone "professionally" managing their money. Believe me, you are just as beautiful without the Coach purse.

There is nothing wrong with dressing nicely and having nice things to carry around, but please do not pay for it over the next 12 months by swiping your credit card in the heat of the moment. It is way too easy to get caught up in the world of material "must-haves". Think about what you would like to do with your money first. Besides, you can buy the purse on clearance at the end of the season with the money you have saved in the bank!