Buying an Expensive Car: Contrary to popular belief, buying an expensive car is not “the cool” thing to do. Not everyone in the U.S. makes payments on a car; typically just those that don’t understand personal finance. To begin with, a car loses value incredibly quickly. Second, having a super nice car and a crappy apartment is hardly impressing anyone. In fact it typically gives off the opposite signal stating, “I have tremendous debt” or “My parents buy me stuff.”
You can buy a nice car once you are successful. For now stay out of debt and buy a car with cash that you can realistically afford. This will help you avoid a monthly payment and the insurance will be cheaper as well.
Smart Phones: Smart phones are expensive and unnecessary. Most people have computer access at home and do not need a smart phone for the Internet. Very few people can justify the expensive data plans associated with their phone plans. This is a monthly payment that automatically comes out of your bank account before you even think twice. I hear college students whine that they don’t have any money, and yet when they pull out their phone they always have the mobile device.
With a basic phone plan you could be paying around $40 a month with some carriers instead of $100 (which is the average for most phones with data plans). That means you could save $60 per month, which adds up to $720 per year in savings. I know playing Angry Birds is addicting, however it doesn’t justify spending an extra $720 per year.
Stick with a basic phone plan for now, at least until you have savings put away.
Fast Food: Paying $5.50 for your daily fast food purchase seems like a steal, but in reality your just stealing away from your savings account. Not only is this food typically unhealthy for your body, it is also unhealthy for your wallet. $5.50 per work day adds up to $27.50 per week and $110 per month. Think how many groceries you could buy at your local store for $110.
When you cook dinner, add extra portions to store in Tupperware for lunch that week. This way it won't require any additional work and you will already have a lunch packed and ready for when you are rushing out the door to leave for work.
Tattoos: People don’t buy tattoos when they are broke; they buy them with that extra bonus money they hadn’t accounted for. The problem is, this extra money could have been put in an account for a time when you have an unexpected problem, like car troubles, a medical bill, etc. Having emergency saving prevents small unexpected problems from becoming life-changing financial issues.
Wait to get the ink until you have some money tucked away for an emergency.
Boom. Helpful info here. Though most of it is common sense, many don't put it to good use (sometimes myself included).
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