We are not talking about switching off lights when no one is in the room or giving up bottled water for tap water. There are many sneaky money leaks that may go unnoticed and they add up. Before you know it, you are throwing away money down the drain.
Listed here are 7 money leaks and the step needed to stop these leaks.
1. Unlimited Gym Memberships
Unless you are a gym freak who goes to the gym everyday, you may want to reconsider paying à la carte for your gym membership. An average person hits the gym about 4 times per month, is it still worth it to pay for unlimited gym membership then?
Solution: Calculate how many classes you need to attend in order to make the unlimited membership worth it. If the number of classes you can attend doesn't justify the unlimited membership fee, go for the à la carte option or a month-to-month membership with no cancellation fees.
2. Letting Credit Card Rewards Points Expire
Your monthly statements reflect them but do you really notice the expiry date of your reward points? Unless you have a solid plan of maximising them, these points are just slowly building up and before you know it, they expire.
Solution: Use a cash back reward program instead, redeem them and deduct them from your credit card balance monthly.
3. Free Trial Offers
Watch out for sneaky free trials that lock you into a monthly subscription. Some companies make it near impossible for you to cancel after the trial period is over.
Solution: Don't sign up for anything that requires you to enter your credit card details before you can get the trial offer. Be careful if you can't find a "cancel" button in your account section. If you cannot get out of a subscription, use social media to your advantage and pressure the company.
4. Ask for Receipts When You Make Donations
You are doing a good cause for charity, why not do yourself a favour at the same time? You can reduce your tax and save money by taking advantage of tax deduction scheme.
Solution: Ask for receipts whenever you donate. Do note you may also get a write off when you donate goods.
5. Unwarranted Digital Subscriptions
You might think the cable bill is one of the main culprits for your money leaks but in fact it's those smaller digital services like e-books, online newspaper, online magazine subscriptions, gaming sites and music services.
Solution: Take 10 min to review your digital usage each month, it's time to cancel it if you are not getting your money's worth.
6. Renting Instead of Buying
Need a heavy-duty drill for some DIY cupboard project? Instead of buying it, why not rent the equipment at a fraction of the cost? Anyway, how often will you be using that drill again?
Solution: Rent the equipment. Try to complete everything in the best time you can and you save up additional days of rental, not to mention, preventing procrastination.
7. Shipping Fees
In order to increase their online sales, some companies have increased their free shipping offers. A usually minimum order to qualify for free shipping is $50 instead of $40 now, "forcing" people to add more products to their shopping carts.
Solution: Go for retailers that always offer free shipping. You can also buy online and pick up your product personally.
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(price as of Nov 14, 2016)