2 Things That Adults Spend Too Much On


Squeezed Wallet
It has only been a few months since your first ever paycheck. The money seems a lot at first but you find yourself living paycheck to paycheck, or even struggling to survive till the next month. 

This is a situation that is not exclusive to you. Many young adults are having trouble managing their finances and they tend to spend a little bit too much on unnecessary things.

Although feasible in the short-run, not accumulating savings while you are young and starting to invest is a mistake most people regret once they are older. Let’s take a look at the list of things a majority of the young adult population are spending too much on and what they can do about it.

1. Rent
Whenever possible, find employment within commuting distance of your parents' home - because that’s where you will want to be staying at. Moving out and renting would take a massive toll on your finances. You will save a lot more by just staying put because most of the finances will be split between you and your parents.

2. Eating Out
Whatever it is, eating out is almost guaranteed to cost you more than eating home-cooked food. This also applies for the lunch or breakfast you have during work hours. You’re not only paying for the cost of food but also for service and even the rent of the restaurant. Eating out usually also means you have to pay for every single meal. Why would you want to do that when you can prepare and plan your meals for a week by buying ingredients in bulk, thanks to the magic of refrigeration? All you will need is a bit of change in spices and seasoning just to keep things interesting.

3. Credit Card Interests
Refrain from using credit cards and pay with cash or your debit card whenever possible. The interest can really do a number on your financial planning. You will also tend to overspend because you do not have the physical cash on hand to get a good gauge of how much money you actually have. You might end up deep in credit card debts with interest to boot if you don’t curb your credit card spending habits.

3. Seasonal Fashion
Fashion fads come and go. As much as we would hate to admit it, we frequently fall victim to seasonal fashion trends. Most fashion retailers are aware of the prevalence of such trends and take advantage of this by upping their marketing efforts to make sure these fashion pieces get really high visibility and make you feel left out and uncool if you do not own a piece. As history has taught us, that is rarely ever the case. However, it does not mean you have to stay unfashionable. You can instead invest in certain timeless fashion pieces such as a nicely-fitting basic top, a tame-colored shirt or a high-quality polo-tee. Quality is essential to make the clothes last longer whilst a good fit makes your tops look pricier than they really are.

4. Coffee
There are some who cannot go a day without having at least a cup of their branded artisanal coffee with names longer and more fanciful than most people would care to remember. These cups of caffeinated brown liquid do not come cheap. Compared to traditional coffee shops, the coffee from these boutique cafes usually cost an upwards of three to four times more. That means you can get three to four days worth of coffee from a traditional coffee shop at the cost of just one artisanal coffee. Now imagine the money you can save even if you have to have your daily cuppa to function properly at work.

5. Drinking Out
After a long hard day at work, sometimes all you need is a bottle of beer. There is nothing wrong with that - after all, work hard and play hard right? Well, where you choose to drink can really have an impact on your finances. Opt for having a drink or two at home with beer you buy from the supermarket. Drinking out has a number of additional financial side-effects. You should not be drinking and driving so the transport would cost extra especially if you head home late at night. If you are the hungry sort, buying grub at a bar always comes at a premium. If you absolutely have to head to a bar, especially when you plan to drink with colleagues or friends, there are plenty of great watering holes that offer drinks at a cheaper price. For example, head out of the central business district area when you are looking for a bar. Bars catering to rich, established bankers tend to charge a hefty premium.

6. Cab Rides
Unless you stay within walking distance of home, then there is no escape from the daily commute and the expenses that comes along with it. Unless you own a vehicle of your own there is no avoiding this expense so the least you can do is to minimize it. There are trains, buses and jeepneys around that cost a lot less than taking a cab back so options are pretty plentiful for you.

7. Paying full prices for your items
You can further stretch out your pesos by making use of promotions, sales, discounts, loyalty programs and coupons to knock the prices down a notch or two. They are many ways to go about this. You can get coupons or vouchers from newspaper clippings or just wait for a sale to get some good discounts on products. Most stores also offer a loyalty program where members get a certain percentage off the price or get a free drink after purchasing a number of them.

This also applies for online shopping. There are coupon codes, voucher codes and even big online sale events like the upcoming Christmas sale event. You can even take advantage of cash back - better known to many as cash rebates - whenever you shop online from providers of such service like ShopBack for some guaranteed savings on top of the ones you get from discounts.

There are usually other alternatives to many things that you are spending on. That doesn’t mean you have to scrip on everything. There is a difference between being frugal and being cheap. Sometimes quality is necessary. You just have to look at the bigger picture. It is never too early to start saving, and when your savings are substantial, to invest them. The road to financial independence starts early and often from small things.

Sharizzat recently graduated from a local university majoring in economics. He now writes full time for cashback service provider, ShopBack.

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2 comments :

  1. Thank you for the wonderful tips. And you know what I love more? It's the very neat design of your blog :D More Power!

    ReplyDelete
    Replies
    1. agree! very organized and not full of dumb ads and misc. links or whatsoever.hehehehe

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