8 Ways We Overspend
The concept that building wealth is a function of our income is misguided. Building wealth is in reality, a function of our spending habits.
A lot of people have no idea how much money they spend. Most of that goes toward small things bought every day instead of large purchases.
Lama Farran, a certified money coach, has a great method for taking the money that would have been spent on these small items and putting it toward an emergency fund.
Here are the 8 most common money leaks that Farran describes:
- Eating out
- Books and magazines
- Unused utility services
- Extra banking fees
- Lottery tickets
- Amazon purchases
Some of the listed items might be more relevant to you than others, but decreasing the amount you spend on each will benefit your bank account. This is especially true if that money is helping to build a rainy day fund. You never know when you might need some extra funds to fix something around the house or in case of a sudden job loss.
Check out The Latte Factor: 8 Ways We Often Overspend to find out more.