Where is my money going?

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When I was young and it was raining outside we would have to find things to do inside. One game we used to play involved hiding some item and then everyone else trying to find it. Usually before the game was over, someone would hide the item very much out in the open. It was this hiding place that was usually the most difficult to find. Seems strange, but when things are right under our noses they are often very hard to find.

The same thing is usually true with our money. Unless you are living on a budget it is very likely that you are spending money each month and you don’t even realize how much it is costing you. I came across an article at SmartMoney.com that lists 7 Things You’re Wasting Money On.

Bottled Water
Extended Warranties
Gym Memberships
Overdraft Fees
Organic Produce
Auto Insurance
Music Downloads

At some time or another each of us has spent money on most if not all of these items. Some may seem as necessities, but with a little bit of work, you can still enjoy the benefits without wasting the money. For example, bottled water quality water can be achieved with using a filtered pitcher such as Brita. Auto Insurance can often be found cheaper from another company, or maybe your current company will offer a discount. What about that gym membership? Do you really need to go to the gym to use their treadmill? Try a nice walk around the block.

The one that seems to be the most detrimental to your long-term financial plan is the overdraft fees. If you can convince yourself to start living on a budget, then you can eliminate overdraft fees from your life very easily. The solution is very simple; first, keep your checkbook balanced or monitor your account online at least once a week. Second, stop using your credit and and finally, don’t use your debit card on anything other than what you have budgeted.

It isn’t difficult but it does take some discipline.