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5 Signs That Your Spending Is Out of Control!

By Len Penzo

trash cashEven if you’re rich, wasting money is criminally stupid. Sit down for a minute and think of all the things you could do with the money you waste that would otherwise make life better for someone else. If that doesn’t grab you, then think of what you could do with the money that would make life better for your future self. Oh, yes, lovely and young as you are today, you’re almost certainly going to have a future self who wishes they had more money in the bank.

If even that isn’t enough to make you reconsider your ways, think of how hard you worked to earn that money, and then picture yourself doing that work for free because what you’re essentially doing is throwing hours’ or weeks’ worth of salary right into the trash. Insane, right?

With that in mind, here are five signs that you probably need to curb your spending:

1. You Buy New Stuff Just Because It’s New

You’re the guy in line at 2 a.m. on the day the new iPhone is being released. But guess what? There’s always going to be a new iPhone coming out. And a fancy new fill-in-the-blank. Commerce is what makes the world go ’round. If companies stopped creating new versions of things to sell, they’d go out of business. However, it doesn’t mean you have to buy into the super-hype and rush to get everything the minute it hits the shelf.

It’s not just electronics. The new car smell is still hanging in the air and you’re at the dealership again looking at next year’s models? Cars depreciate 11% the minute you drive them off the lot, and lose 19% of their value in the first year. You don’t get your money’s worth out of a car until you’ve driven for a while.

2. You Sale Shop for Things You Don’t Need

It’s Black Friday, Cyber Monday, Super Saturday, or Free Shipping Day, and you’re right out there among the rest of them. Fighting your way through the crowds — real or virtual — to get your hands on stuff you never knew you wanted. You hate to miss one of your local department or computer store’s special sales (nearly every weekend), and you never pass up two-for-one coupons for things you don’t even need one of. “But look how much I’m saving!” you say. But look how much you’re saving if you keep your wallet in your pocket.

What’s that you say? You only shop at discount stores, dollar stores, and places with Barn, Depot or Warehouse in their names? Look how much I’m saving! Yep, you’re saving what it would have cost if you’d bought the same things at high-end establishments. But if you don’t need them, then you’re not saving a cent no matter what you paid for them. Plus you’ve got to figure out where to put everything when you get it home. You want to wind up living like someone on Hoarders?

3. You Pay Fees to Use a Credit Card or Checking Account

You’re handing over money to a credit card company so that you can pay interest on the money you owe them? What a deal! There are a few exceptions when the program rewards will more than pay the fee, but generally, paying an annual credit card fee is dumb. There are plenty of credit cards with no annual fee. Get one.

The same applies to having accounts at a bank that charges a monthly checking account fee or a fee to visit a teller instead of an ATM. Do some research and find a bank that will accommodate you with no fees for a minimum deposit you can live with.

4. You Don’t Use Loyalty Cards at the Stores You Shop at Regularly

Rail as you might at the insidiousness of grocery and other stores that extract personal information from you and track your purchases in exchange for giving you discounts, if you regularly shop at a store that offers special pricing to customers in its loyalty program and you don’t take advantage of it, you’re over-spending at that store by 20% or more every time you shop there. Unless you’re in a witness protection program, it’s absolutely worth the savings to give your local supermarket your address and phone number and let them keep tabs on the brand of butter you buy.

5. You Eat Out More Often Than You Eat at Home

If your breakfast comes in a Styrofoam container, your lunch is delivered in a plastic box, and you’re choosing dinner from a menu, you’re spending way more than you have to. You can’t help it if you’re on the road, but otherwise, you can eat as well or better at home for a lot less money, even if you barely cook at all. Tax and tip alone add about 25% to the price you’d pay if you bought the food yourself and just nuked it. If you actually know how to cook, there’s sort of no excuse.

Photo Credit: stock photo

17 Comments July 8, 2019

Comments

  1. 1

    Jon @ Money Smart Guides says

    I’ve noticed the Black Friday sales have gotten worse and worse. I tend to try to find some good deals so I can then resell the items I bought at discount for a profit on Amazon.

    But recently is seems that the best “deals” are for knockoff junk brands that people only get in a tizzy for when they see the super low price. The sad thing is, they are probably still overpaying for the hunk of junk

    Reply
  2. 2

    Alan L says

    “You Buy New Stuff Just Because It’s New”

    That’s the thing with compulsive buyers, they just can’t help buying new stuff and if they don’t, they get mad… Such spendings should be limited in order to keep finances in check.

    Reply
  3. 3

    Les Conyers says

    I bought a new car back in 2012 . It had been close to 20 year since buying a new car. However, I bought a new because I could afford to buy a new one. I don’t want to buy another new one because I hate owing or debt period. I save the money and pay with for any big ticket item with cash. Cash is still King! Who needs the stress of debt?

    Reply
  4. 4

    kammi says

    I just watched The Century of the Self on Vimeo this weekend. If there is a documentary (of four parts) that will make you reassess your consumption, I would have to say that one did for me.

    Reply
  5. 5

    Aleisha says

    Awesome post. Thanks, Len!

    Reply
  6. 6

    Gilbert Barksdale says

    Greetings from Hawaii, Len! I’m bored to tears at work so I decided to browse your site on my iphone during lunch break. I love the information you provide here!!!!!

    Reply
  7. 7

    Len Penzo Is Amazing says

    Thanks, Len Penzo. I had no idea how much money I was wasting! You are my hero.

    Reply
    • 8

      Len Penzo says

      Awww … Just doing my job, ma’am. Er … or sir.

      Reply
  8. 9

    Pamela cordova says

    Thanks for the information. My spending is definitely out of control and I’m only a college student.

    I’m studying in BYU currently and saw this post (in my reply below) on the university website. It’s about credit cards for students.

    I’ve been using credit cards for a few months now and it’s getting out of control!

    What is your opinion Len Penzo, should university students be getting credit cards?!

    Please write a post about this!

    Reply
    • 10

      Pamela cordova says

      https://cs.byu.edu/job-posting/1-unconventional-financial-tip-university-students

      Reply
  9. 11

    ___ ___ __ says

    Hi, this weekend is good in support of me, as this occasion i am reading this wonderful informative article here at my house.

    Reply
  10. 12

    Dillon says

    Totally agree. Keep on writing, great job!

    Reply
  11. 13

    Ducky says

    Sweet blog, Len! I found it while searching on Yahoo News.

    Reply
    • 14

      Len Penzo says

      Thanks, Ducky!

      Reply
  12. 15

    Jennie says

    Keep on writing, great job!

    Reply
  13. 16

    The Washington Post says

    After all, we found a webpage from where we can really obtain useful facts regarding our study and knowledge.

    Reply
  14. 17

    Altavoces Inteligentes|Smart TV|Videojuegos|Patinete Elctrico|Bicicletas Elctricas|Mejores Juegos Android says

    Hello very cool site!! Man .. Excellent .. Amazing ..
    I will bookmark your blog and take the feeds also?
    I’m glad to seek out a lot of useful info here in the put up, we want develop extra techniques in this regard, thanks for
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    Reply

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