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Waste Not, Want Not

No one is perfect when it comes to saving money, but some of us really need to be better. If you have credit card debt and loans you can't shake, keep reading. Finance advisors have some ideas about how to live a little leaner and may not mind a bit. 

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1. Spending Unnecessarily

There are so many good reasons not to buy things you don't really need. It adds clutter to your home, but more importantly, it burns through your money. Moneywise pointed out that billionaire Warren Buffet used a $20 flip phone for years before finally upgrading to an iPhone in 2020.

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2. Buying New Cars

It's an old saying — a new car dips in value the minute you drive it off the lot. According to Kelly Blue Book, most cars lose 20% of their value in the first year and a whopping 60% in the first five years. Look for a used car and save money.

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3. Buying a Daily Coffee

Sure, we all love our daily visit to Starbucks or a local coffee shop, but Suze Orman says that your daily cuppa is equivalent to pouring $1 million down the drain. She actually has numbers to back it up. "$100 a month in a Roth IRA, over 40 years is $1 million. So you need to think about it as you are peeing $1 million down the drain after you are drinking that coffee.” Since she came to this conclusion in 2019, coffee has gotten more expensive. Either way, it isn't enough to skip getting coffee. The key is to put that money into a Roth IRA.

4. Dining Out

We all grab dinner on the go or at a restaurant sometimes, but Orman says it should be an occasional expenditure, not a habit. Limit lunches out to once-a-week and brown bag it the rest of the time, and spend some time looking up recipes instead of hitting Yelp for restaurant reviews. You might be surprised how much cash you have at the rest of the month.

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5. Drinking Bottled Water

This one's a no brainer. Besides adding plastic to landfills, plastic bottles shouldn't be reused, so you're just tossing out a single-use container to drink something that's almost free from the tap. If you decide to get a water bottle, don't become a Stanley or Yeti cup fan who has to have one in ever color. Just one will do the trick. 

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6. Overlooking Opportunities for Side Hustles

If you have time for a side hustle, do it. In his early years, Buffett picked up side hustles such as delivering newspapers, selling used golf balls, and buffing cars. If your alternative is sitting in front of the TV or staring into space, a side hustle might be a good change of pace and a way to make some extra cash. 

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7. Buying Lottery Tickets

Orman calls the lottery a “tax on the poor,” and given how small your chance of winning is, she's got a point. Instead of gambling on a jackpot you're unlikely to win, consider paying down your debt instead. 

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8. Living Beyond Your Means

Keeping up with the Joneses can't end well. Spending more than you have usually leads to debt and the high interest rates that go with it. While it might feel like failure not driving the latest car or living in the hippest neighborhood, knowing that you might someday be able to retire is worth it.

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9. Not Using Coupons

Believe it or not, even Warren Buffett uses coupons to save a few bucks. In Melinda Gates' 2017 annual newsletter, Bill Gates (a billionaire in his own right) recalled how Buffett offered to pay for lunch at McDonald's during a trip to Hong Kong and "dug into [his]pocket, and pulled out … coupons!" If they're good enough for Warren Buffett, they're good enough for you.

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10. Keeping Unused Subscriptions

We all have that Netflix (or Disney+ or Paramount+) aubscription we don't watch that much, plus gym memberships and magazine subscriptions that don't get used, but conveniently auto-renew year after year. Cut the cord and get rid of these money eaters. If you end up missing them, you can always renew. 

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11. Paying ATM Fees

It seems like a small cost, but add it up over the course of a year, and you might be surprised. According to Orman, you can switch to a bank with a wider ATM network or plan cash withdrawals ahead of time. It may be a small charge, but it's just as easy to avoid it.

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12. Not Investing in Yourself

Yes, it's a good idea to sock money into a 401k, but don't overlook an investment that can pay off big-time — investing in yourself. Buffett says you should go to bed smarter each day — and reading is a good way to do it. He says anyone who hopes to be successful should read 500 pages a day. 

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13. Putting Quantity Over Quality

Don't buy something just because it's cheap. As Buffett wrote in his 1989 letter to Berkshire Hathaway shareholders, "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." This is a good rule of thumb when you're buying clothes or groceries — if you have to spend a little more to get something that will last a long time or will pay off in other ways, that's money well spent rather than getting more things that aren't quite right.

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14. Buying Extended Warranties

These might seem like a good idea when you're purchasing a big ticket item, but don't be fooled. Orman points out that your item, if it breaks, will do so after the warranty has ended. And, if you have to shell out for repairs, it's likely to cost less than the extended warranty anyway. Save your cash.

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15. Paying Credit Card Interest

Credit cards are great — until you can't pay them off every month. According to Orman, carrying a high-interest credit card is like "financial quicksand." Don't pay the minimum, even if you can't pay it all off. Even an extra $20 a month will help make a dent. Also, give the credit card company a call. You might be able to swing a lower interest rate.

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16. Don't Impulse Buy

Maybe a summer dress is on sale and you'll have to stick it in your closet, unworn, for months. Maybe there's an item you don't really need, but could ... someday. Orman suggests a 24-hour waiting period. If, a day later, you still really want something (and you can afford it), it's probably okay to buy it. 

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17. Ignoring Your Savings

Remembering to save money is a tough job — so do it automatically. Orman believes in the power of compound interest, so even if you can only sock away $20 a pay period, know that it will grow.

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18. Not Re-Evaluating Your Cell Phone Plan

If you've just gotten used to paying through the nose for your cell phone (or internet, for example), consider re-evaluating on a regular basis. Compare plans and don't be afraid to ask for a better rate. Most companies would rather give you a deal than lose you as a customer.

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19. Grocery Shopping Without a List

This is a bad idea for so many reasons. While you're almost guaranteed to forget something you need, you're also likely to buy things you don't — resulting in a bigger bill and impulse buys that will sideline your waistline and your budget. Bring a list and, bonus, meal planning will be a breeze. 

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20. Get Pricey Manicures And Pedicures

A mani-pedi can be a welcome bit of self-care, but if it becomes a weekly habit, it can be a strain on your wallet. Do your nails yourself or find out if local beauty schools offer cheaper services (they often can cut hair, too).

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21. Chasing Trends

While it might be long past time to get rid of your skinny jeans, consider replacing them with something classic that won't go out of style. Orman suggests a timeless capsule wardrobe with investment pieces that will last for years. Not ready to buy pricey pieces? Consider looking for them second-hand. 

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22. Overbuying Housing

Don't get caught up in buying a bigger house than you need. Orman says opting for a “McMansion” over a smaller home that has more than enough room for a family is a terrible waste of money. Not only does it cost more, you're also likely to fill it up with more stuff. 

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23. Spending Too Much on Gifts

Giving your family or friends a pricey item may seem like a good use of money, but chances are good they'll like something meaningful a lot more. Don't just spend — think about what will really make your gift recipient smile. 

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24. Not Preparing for Curveballs

May you never need an emergency fund — but chances are good that you will. Whether you get stuck with medical expenses, job loss, eviction, or something else, it's best to save at least six months of income in case of a curveball. 


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