7 Tips to Fix a Leaky Money Bucket
If you’re trying to be better with managing your personal finances, I commend you.
Just remember, that while you’re trying your best to limit how much you spend, and trying your best to sock money away in your savings and retirement account…
You could have a leaky “money bucket” that is costing you major cash every month.
So today I’m giving you a great way to get a lot of that “leaky” money back, by taking a look at your credit card and debit card statements quarterly.
Here’s what you need to do:
At the end of every calendar quarter, (that’s every three months), you need to review all of your credit card and debit card activity from that period.
While being on the lookout for companies who are automatically charging you a fee on a monthly or longer interval.
The fact is, many people sign up for things that require automatic monthly payments from your credit cards. When they buy these things, they want it or think it’s important to have.
Then after a few months to a year, they don’t use the service or product anymore, but still have cash taken out each and every month, automatically.
Here are 7 Tips for making sure you don’t have a leaky “money bucket”…
Tip 1) Check your statement for gym or fitness center memberships you are getting billed for, but you don’t use anymore. (Potential monthly cost – $40)
Tip 2) Look for educational memberships online you used once and forgot about. You may have been interested in learning about a certain subject a year ago, but you’re not interested in it anymore.(Potential monthly cost – $60)
Tip 3) Think about the haircut club you rarely use, making it more expensive to get a haircut. You could be making 4 monthly payments for each haircut that you only get three times a year! (Potential monthly cost – $25)
Tip 4) Watch for service contracts on your home you buy and never use. For what you pay on a service contract year after year, you could easily just fix or replace an item and save a pile of cash. (Potential monthly cost – $29)
Tip 5) Look at magazine subscriptions you rarely read. You may have thought getting those magazines every month was a good idea. But after a while, you may be throwing them right in the trash, along with your hard-earned dough! (Potential monthly cost – $35)
Tip 6) Beware of Trial memberships you never used, but forgot to cancel after the free period. They will gladly continue to bill you automatically, until you say stop. Just one of these can really add up! (Potential monthly cost – $40)
Tip 7) Scan for Extended Protection on products you no longer own. You may have decided you don’t really like the product anymore, or you gave it to someone or sold it in a garage sale. Yet you could still be paying for the protection every single month! (Potential monthly cost – $29)
As you can see, there are many things that could be sending cash into that leaky bucket, never to be seen again.
And when you add up the expenses paid on the examples above, for only one month, the wasted cash adds up to $258! Then if these recurring charges are left to bill you each and every month, that’s a whopping $3,096 you could be wasting each year.
So take a look at your statements today. Then review them again at the end of each quarter. Taking the time to review your finances will always save you some cash!