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When it comes to managing money, it’s often the small, everyday habits that make the biggest difference. As I discussed on Fox 5 DC, many of us unknowingly lose money in ways that are entirely avoidable. From insurance policies to electricity bills, there are countless opportunities to cut back and save. Let’s take a closer look at some common money-wasting habits and how you can turn them into opportunities to save.
1. Not Shopping for Insurance
One of the easiest ways to save money is by shopping around for insurance. Auto insurance, for example, is a standardized product because it’s regulated by the states. This means the structure of a policy is the same regardless of the insurer. However, premiums can vary significantly from one company to another. Take the time to compare rates every few years—you might be surprised at how much you can save without sacrificing coverage.
2. Not Utilizing Cash Back Rewards
If you’re using a credit card that offers cash back rewards, make sure you’re taking advantage of them. These rewards can be valuable, but only if you redeem them regularly. The best way to use them is to apply them as a statement credit. This reduces your balance, cuts down on interest, and helps you pay off your credit card debt faster.
3. Not Paying Off Credit Cards Each Month
Speaking of credit cards, carrying a balance is one of the costliest financial mistakes you can make. Credit cards typically carry high interest rates, and if you’re not paying them off each month, the interest can add up quickly. Make it a priority to pay off your balances in full whenever possible to avoid unnecessary expenses.
4. Keeping Thermostats Too High or Low and Leaving Lights On
Energy costs can spike during the summer and winter months, but there are ways to save. If you’re not home, turn off the lights and adjust the thermostat to a more energy-efficient setting. In the winter, keep the heat on just enough to prevent pipes from freezing, but lower it when you’re away. These small adjustments can make a big difference on your electricity bill.
5. Eating Out Too Often
There’s nothing wrong with treating yourself to a nice meal out, but eating at restaurants too often can drain your wallet quickly. Consider packing your lunch for work or limiting how often you eat out during the week. Cooking at home not only saves money, but it’s often healthier too.
6. Wasted Travel Costs
Travel is a common area where expenses can spiral out of control. For instance, airport meals are notoriously expensive, so bringing your own snacks can save money. Flying in coach instead of splurging on upgrades is another simple way to cut costs. And when booking accommodations, think about how much time you’ll actually spend in your hotel room—if it’s just a place to sleep, opting for a more budget-friendly option can keep more cash in your pocket.
The Key to Saving: Awareness
As I tell many of my clients, the key to saving money is taking a step back and thinking about your habits. Where is your money going? Are there small changes you can make that would have a big impact? By being more aware of your spending patterns, it becomes much easier to identify areas where you can cut back and save.
Final Thoughts
Saving money doesn’t have to mean making big sacrifices. Often, it’s the small adjustments—shopping for better insurance rates, turning off the lights, or limiting how often you eat out—that add up over time. Take a moment to evaluate your habits and look for ways to be more intentional with your spending. Your wallet—and your future self—will thank you.
If you’d like personalized advice on managing your finances and finding ways to save, don’t hesitate to reach out. I’m here to help you make the most of your money.
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About the Author:
David Peters, CPA, CFP, ChFC, CLU, CPCU, CGMA, is the Founder and Owner of Peters Professional Education (petersprofessionaleducation.com) and Peters Tax Preparation & Consulting, PC. David Peters is also registered with the U.S. Securities and Exchange Commission (SEC) as an Investment Advisor Representative (IAR) with Peters Financial LLC. He regularly teaches courses in accounting, finance, insurance, financial planning, and ethics throughout the United States, and regularly contributes regularly to various professional publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures.
Required Disclosure:
The content presented above is for informational purposes only, is general in nature, and is not intended to and should not be relied upon or construed as financial, investment, or estate planning advice. This does not constitute an offer to sell or a solicitation to buy any security, investment or planning product. Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. Please consult with a financial advisor to assess your individual situation.
Financial and investment advisory services offered through Peters Financial LLC. Brokerage and custodial services offered through Charles Schwab Co. Inc., member FINRA and SIPC. Peters Financial LLC and Charles Schwab Co. Inc. are not affiliated. David Peters also offers tax services through Peters Tax Preparation & Consulting, PC. Peters Tax Preparation & Consulting, PC is not affiliated with Peters Financial LLC and clients or prospective clients are never obligated to use Peters Tax Preparation & Consulting, PC. as part of any financial planning or investment management services offered by Peters Financial LLC.
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