In 2015 we saw the U.S. women win the World Cup, Letterman retire, and the Force awaken. Oh, and we spent too much on some things. Some of the ways it happened were small—others, not so much. However it occurs, it’s important to know where we collectively spend so we can make the tweaks to fix it. Here are a few big ways Americans spent money this year.
- Student loans. The college graduates of 2015 will pay back more than $35,000 each, according to The Wall Street Journal. Consider attending a university you can afford, apply for scholarships, and work throughout the year.
- Ziosk tablet activities. Ziosk tablets are the devices on restaurant tables that allow you to see the menu or pay your check. That’s good. You can also use them to shop or pay for games the kids can play. Not good!
- Gym memberships. Tons of people buy health club memberships in time for January 1—but by that month’s end, the treadmills are empty.
- Daily coffee trips. Back before coffee shops started popping up on every street corner, people brewed it themselves.
- Car wash upgrades. With all those “upgrades,” it’s like getting one wash for the price of three.
- Name-brand paper products. You only use paper towels, napkins and paper plates once before they hit the trash. So why would you pay name-brand prices for them?
- Timeshares. The average cost of a timeshare is around $16,000, according to Marketwatch. Between that price, the maintenance fees, and the fact that timeshares are dang near impossible to sell, the stress will suck the joy out of your getaway.
There’s nothing wrong with buying stuff you can afford. The trouble comes when you spend too much because you aren’t paying attention. Keep an eye on your spending now and you’ll keep more of your money later.
Source: Realty Times, and The Stovall Team
Ask The Experts: The Stovall Team
Saving money ranks high on most of our lists of New Year’s Resolutions. Create a family budget immediately. A snapshot of what you make and spend is critical. Who wants to be bothered with a budget? It takes time to ex-amine what you spend, where you spend it, and how much (or how little) you bring in relative to your expenses. Plus, you could be in for some unpleasant surprises. However, if you have dreams of buying a home, paying down debt, taking an exotic Hawaiian vacation, or having a comfortable retirement, planning is vital. And the first step to securing your future is to be aware of how you spend your money today.
It is the simple idea that the small trivial things we spend on everyday adds up to an extremely large amount over time. It isn’t all about skipping the store-bought fancy coffee as the “latte factor” is actually somewhat of misno-mer, it covers a lot more than lattes. It can be the candy we buy to snack on out of sheer boredom. Or the ciga-rettes we buy because we just can’t shake the nasty habit. Or the subscriptions to the magazines we don’t read but are too lazy to cancel. Heck it can even be the miles that we drive to work everyday.
The latte factor is the unconscious spending on the little everyday things that do not add any value to our lives.
Taking control of your latte factor means the willingness to give up on the little things for the sake of big wins (those that bring long term happiness and value). It calls for discipline of your spending habits. New Year’s resolutions can be a great way to spark change in your life. And wouldn’t freeing up money be a great way to start out 2016?
Sources: Stovall Team, Realty Times, CNN Money