Fred Harteis News - FEEL LIKE YOUR hard-earned cash leaves your wallet faster than it should? Don't blame the lattes. Chances are you're blowing through money in much more substantial ways, from paying too much for your car to forking over insurance premiums you could easily reduce.
So forget about penny-pinching. Here are five major ways folks waste their money. Stop wasting money in these areas and you'll never fret about your latte spending again.
1. New Cars
Because cars depreciate fastest during the first two or three years of ownership, that new-car smell probably costs you 30% or more than if you bought the same car used, says Philip Reed, consumer advice editor for the car information Web site Edmunds.com. "People who have money and are good with money frequently buy used because they understand how much they're saving," he says. On top of that, used cars typically have lower insurance premiums, mainly because they cost less, Reed explains. Click here for advice on buying a used car.
2. Brand Names at the Supermarket
At the drug store or supermarket, some brand items are simply not worth buying. The generic versions are just as good and cost much less. This can be anything from bananas and paprika to most over-the-counter medications. The secret: Generic items are often made using the exact same formulas as the brands you like. In some cases they're even made by the same companies. But since drug stores and supermarkets don't have to advertise these products, generics are much cheaper.
That said, not all generic items are worth buying. The classic example: paper goods. Because the cheaper generics are made with fewer fibers, they're often thinner and hold less liquid.
3. At the Office
Granted, we're paid to work, so the workplace isn't your logical money pit. Answer this, though: Are you taking advantage of all benefits your employer offers?
We don't just mean your 401(k), but perks with more immediate gratification, too. Take your flexible spending account, which lets you use pretax dollars for medical expenses, including over-the-counter medications. If you're in the 25 percent tax bracket, you'll save $25 out of every $100 you spend. These days, almost all employers -- 96 percent -- offer FSAs, according to consulting firm Hewitt Associates. Many employers also offer dependent care spending accounts to set aside pretax dollars for child care, and have transit programs that do the same with commuting expenses.
4. Cell Phone Early Termination Fees
If you're lucky, you'll never have to cancel your cell phone contract before it expires. These days, cell phone companies tie you in for as long as two years -- twice as long as they used to several years ago. And should anything unexpected happen during that time -- say you have to move and have a bad or no signal in your new home or office, or your phone breaks and you find other carriers offer much better prices on new phones and plans -- canceling your contract will cost you as much as $200 per line. Indeed, between 2002 and 2004, consumers spent a whopping $2.6 billion on early termination fees.
The good news: You can avoid paying early termination fees thanks to companies that help you transfer your contract to someone else. These relatively new services act like matchmakers between consumers trying to get rid of their cell phone plans and those willing to take them over. (The allure of buying an existing plan is a shorter-term contract and, ideally, a free phone.) At Celltradeusa.com, for example, you post an ad detailing your plan and interested buyers contact you via e-mail. The cost: $19.99.
5. Homeowners Insurance
Homeowners in some coastal and hurricane zones are about to see their home owners insurance premiums as much as double this year, according to the Insurance Information Institute, an industry information group. But you don't have to take the full hit. If you haven't already asked your insurer for discounts you may qualify for, now is the time to do so. If your home owners and auto insurance policy are from the same company, for example, you could get 5% to 15% off your homeowners premiums. So could membership organizations like the AARP or AAA, or even your alma mater's alumni association.
Source: Aol.com
About Fred Harteis: Fred Harteis leads Harteis International. Fred Harteis has a background in agriculture and has created many successful business ventures.