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Do You Know Where Your Money is Going? What Do you Overspend On?

In our spend-happy culture, it’s sometimes hard to find financial peace of mind. The national credit card debt is up over $200 billion over the past five years, and things like online shopping and keeping up with the Joneses make it almost certain that this number is going to continue to snowball. Enjoying your life is important but having a sound financial plan is vital. One key to gaining a strong financial footing is identifying areas in which you overspend, perhaps listed below.

  • Clothing: Don’t pay full price for clothing. There are plenty of tricks for getting around this, from shopping consignment to finding promo codes online to joining loyalty programs.
  • Water: Bottled water costs more than gasoline, so skip it. Instead, buy a filter for your home and use reusable bottles.
  • Car Insurance: Most people choose an insurance company and stick with it, even if the premiums keep climbing. By shopping around every two to four years, you could reduce your rates by $100 to $200 a year.
  • Being over-insured: It’s important to have the insurance you need, but Insurance companies, tend to play on people’s fears, roping them into insurance they don’t need, like extra rental car protection or too much life insurance. Additionally, about 84 percent of Americans don’t ask for basic discounts in their insurance, though these discounts could save hundreds of dollars each year.
  • Cheap things: Dollar store items may seem like a bargain, but if they break almost immediately, they’re not such a great deal. Look for mid-priced items of good quality instead.
  • Expensive things: While going for the cheapest option often means missing out on quality, buying the most expensive doesn’t guarantee it. Shop carefully: high priced mattresses and top-dollar hotels, for instance, are unlikely to be worth more than more reasonable options.
  • Subscriptions: Streaming services, gym memberships, and anything that auto-renews can all cost you in the long run. Take a hard look at what you’ve subscribed to and decide what you can do without.
  • Eating Out: It’s fine once in a while, but if you make it a habit you can easily end up throwing away hundreds of dollars every month.
  • Eating In: If you’re not careful, it’s easy to overspend in the grocery store, overbuying food you paid too much for and will likely eventually throw away. Never shop when you’re hungry, plan meals before you go, based on the sales, and always shop with a list.

At Nelson Financial Planning we want to help you create a financial plan that provides for your future. As one of the best financial planning firms in Central Florida, we provide guidance and financial advice so that you can make informed decisions about your future. We believe you should enjoy your retirement, so we’ll work with you to create a plan for a stress-free future. Call (407) 307-3061 or contact us today to set up your free consultation.

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