Budget Killer Number One: Coffee
Many students rely on coffee to keep moving. This often results in buying at least one coffee per day, and the cost of that can add up quickly. A regular coffee will normally cost about $2, and a specialty coffee can cost upwards of $8. Just a $2 per day coffee habit adds up to about $60 per month. Cutting it out completely or making it at home will save a lot of money in the long run.
Budget Killer Number Two: Chips and Soda
Jason Hartman believes in putting money to work, and spending valuable money on chips and soda every day doesn’t necessarily accomplish that. Chips, soda, snacks, and other small daily purchases translate into a huge chunk of your monthly budget. And in case you weren’t aware, chips and soda are, quite possibly, the least healthy substances on the planet. Getting rid of the detrimental additives, MSG,
and loads of high fructose corn syrup benefits more than just the budget.
Budget Killer Number Three: The Electric Bill
While we’re not saying “cut out electricity,” additional costs on the electric bill are not only unwanted, but unnecessary. Cutting electric costs is simple. Start by turning the computer, tv, game consoles, and other electronic gear off when you’re done with them, and shut off the lights when you leave a room. Don’t leave the heat and air conditioner on longer than necessary, and use energy-efficient light bulbs.
Budget Killer Number Four: Cable
You might have cable or satellite television, but do you really watch all the channels? If you don’t, it might be a good idea to switch to a more basic package, or cut the television completely. There are always other alternatives for entertainment.
Budget Killer Number Five: Car Payments
How high are your car payments? If they’re especially high and taking up a large portion of the budget, it might be time to ask yourself how practical the car is. If you’re living on a budget, there’s no need for a fancy car. As long as it can be counted on to reliably move you from point A to point B, it should do the trick. Even if you decide to nix the car completely, most areas have low cost public transportation choices.
Budget Killer Number Six: Fashion and Trends
fashion can kill a budget quicker than most everything else if you take part in them. Young adults, particularly in college, like to fit in with their peers and spend heavily on trendy items. Unfortunately, these trends don’t usually come cheap.
Avoid these mistakes to keep your budget in check. Are there any other budget killers you can think of? Feel free to tell us in the comments. (Top Image: Flickr | 401(K) 2012)
The Young Wealth Team