A recent article on Yahoo Finance discussed what author Farnoosh Torabi called 5 messy money mistakes that people often make without even realizing it. It reminded me of the guest post I recently wrote for Free From Broke which listed 7 money mistakes that can keep you from achieving your goals.
Anyway, here are the 5 money mistakes from Farnoosh’s article followed by my own thoughts on each…
Groceries are a large part of every family’s budget, and the sad part is how much of that food ends up in the trash. We buy more than we need and then end up throwing out the excess. Torabi points out that the average American family throws out 25 percent of the food they buy.
I’m a big fan of warehouse clubs and buying in bulk to save money, but you shouldn’t buy more than you need just to justify your Costco membership fee.
Most cars run perfectly fine on regular gas and if you’re spending more for premium then you’re just throwing your money away. But don’t just assume regular is okay to use. Check the owner’s manual that came with your car to confirm what kind of gas you should be using.
I don’t even have a smart phone yet (but I’m planning to get an iPhone when my current contract is up!) so I’m not really wasting money here. But I know plenty of people who run out to grab the newest gadget as soon as it is available. There’s nothing wrong with being an early adopter but keep in mind that prices tend to drop dramatically after just a few months so you could save a lot by holding out for awhile.
Gym memberships always seem like a good deal at first. You sign up with the best of intentions, but before long you realize it has been 6 months since your last workout. There are plenty of ways to sneak some exercise into your day without joining a gym, but there’s nothing wrong with a gym membership as long as you actually use it.
I disagree with this one. Downloading a few of your favorite songs is definitely cheaper than the old days of buying a CD and ending up with a dozen songs you could care less about. Torabi suggests it is better to sign up for a monthly membership with a site like Napster so you can download more songs per month, but that depends on how many songs you’ll actually download.[Yahoo Finance: 5 Messy Money Mistakes]