3 things you’re wasting money on

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It’s time for a careful review of wherever the money’s going.

We write about money on TreeHugger since spending contours one’s lifestyle, which in turn has a deep impact on one’s carbon footprint. A frugal lifestyle is typically a green , as a lavish one tends to not be.

Today’s ideas on money are inspired by Trent Hamm of The Simple Dollar. He addresses a question from a reader concerning why folks get into financial difficulties. Is it actually since they’re “buying too much stuff” or is it more complicated than that?

Hamm says it’s because of misplaced priorities. People think a lot about the short term, insufficient about the long term, and they wind up paying the price eventually with financial instability. Hamm lists five common regions in which he sees individuals misplacing their money, also I’ll mention three here who are particularly related to TreeHugger.

1. Too much spending on entertainment

In our society there’s a inclination to think about entertainment as a right, and it ought to remain a luxury if we wish to achieve any kind of real financial objectives. It’s not uncommon for individuals to fork out tens of thousands of dollars to encourage entertainment habits which go past the obvious dinners and drinks out.

Subscription services (Netflix, Hulu, Spotify, Amazon Video, etc.) are pure entertainment. Even having a big Internet program is chiefly entertainment for anybody who does not work from house. Shopping, subscription boxes, routine spa and beauty therapies, club memberships, buying books, upgrading technology devices, etc. . things that entertain and entertain, but may be pared down to save big bucks.

2. Too much spending on meals

You need to consume, but perhaps you do not have to consume as extravagantly as possible. Focus on preparing the majority of your foods from scratch at home, using minimal and basic ingredients. Take time to compute the price per serving and you will quickly see how choosing, state legumes instead of rice goes a long way toward lowering cost — without actually affecting your degree of satisfaction.

Cut outside on eating , takeout or delivery, prepared meals, alcohol, coffee to go, bottled drinks, etc. and you will see a difference in the amount you’re capable to store.

3. Too much saving for college

Hamm believes that prioritizing school savings over retirement savings is a foolish decision for the majority of parents. It will “end up putting you at a serious disadvantage while not giving your child as much of a boost as you think.”

Putting that your money into a Roth IRA is a whole lot more flexible, allowing you to secure your retirement and create a choice later on to see if your kid needs help paying for their education.

As for the TreeHugger angle, I also are in favor of expecting kids to foot their particular faculty bill by savingworking, or taking out loans. It’s in keeping with the philosophy that children’s independence ought to be ever-increasing and having a bet in their education is excellent incentive to take it seriously. That’s to not mention I will not assist my kids out as soon as they graduate. (I can use my friend’s trick: each year his parents reimbursed him the percent of his tuition which matched his final level!)

Read Hamm’s complete article here.

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