Financial leaks to plug

November 5, 2013

Here are some ways your money may be leaking out from your wallet and how to plug it.

 

By Michelle Brohier
With the rising cost of items and other financial burdens to worry about, it’s easy to believe that there is little you can do about the dwindling amount of money you have at the end of each month. But there are actually a number of expenditures that can be avoided. So if you’re determined to make each and every ringgit you spend count, here are some ways your money may be leaking out from your wallet and how to plug it

Anxiety spending
You’re stressed out, tired and in desperate need of some cheering up. So you think of the easiest way out: buying happiness through splurging on expensive meals, a couple of drinks at the bar with friends, or even on a new item you like. While they may work in cheering you up for a short while, spending based on your mood is a surefire way to end up with massive debt for things and experiences you don’t even remember why you wanted.

Look into inexpensive ways to handle your stressful days, like staying home to watch a movie or have friends meet up at cheaper places. While entertainment and keeping yourself happy is important; if you aren’t careful, the added bills and debt can be a lot more stressful than the guy who accidentally shredded your work documents.

Hidden costsYou’ve been buying many items that you believe is saving you money as they were on sale, there was a bargain or even a special promotion. But then you realise you didn’t need half of it and probably won’t use the rest. Sometimes, you may find you were duped by a ‘good deal’ that wasn’t so good after all.

Take your time to find out how much the item you want really costs by looking out for possible taxes or fees that may come along with it. Don’t buy anything out of impulse, and do as much research as possible for there may be ways to cut down on those hidden costs. Items on sale that requires you to make more purchases to obtain a discount may not be worth the extra spent, especially if you end up buying items that you never use.

Indiscriminate parking
Parking can be a real pain here in Malaysia, and in order to save time and even money, double parking or even illegally parking seems the only option. But parking this way brings a lot of risk, with the possibility of your car getting scratched or dented, getting summoned or worse, being towed away.

If you receive a summons, it would cost you many times more than parking legally. If your car gets damaged, you will also have to pay to fix it and the inconvenience of retrieving your towed car would also cost quite a bit. So take that extra effort and look for a proper parking spot even if it means having to walk a little further away.

Rarely used services
You spend hundreds of ringgit on your postpaid phone service, on cable TV, gym memberships or even on some subscription magazines. But you don’t use your phone much, barely watch TV, have lost interest in the magazine and let’s face it – you’re never going to the gym again. There’s probably hundreds of ringgit being wasted right there. While they may be useful occasionally, it’s burning a hole in your pocket when it isn’t in use. Cancel it all and before signing-up for something again, make sure you are committed to making full use of it!

Plugging these financial leaks can save you a lot of money, but it can only be done if you make a conscious effort to know where your money is going.

This article brought to you by Michelle Brohier from RinggitPlus.com. We help you get more for your money; be it from banking products to lifestyle tips. Check out our banking product comparator or just drop by for informative reads on everything money.