Proper preparation could SAVE YOU THOUSANDS OF DOLLARS!
I am intentional with every dollar because I want to invest it for my future, use it to increase my Net Worth or spend it enjoying my life. Therefore, I am very careful not to waste any money because of lack of preparation.
The most common areas that people waste money and my simple fixes are as follows:
- ATM Fees – withdraw cash once per month from your bank and stop using ATMs
- Bouncing a check – use a checkbook and keep it up to date
- Over-drafting your account – budget your money, use monthly cash and keep checkbook accurate
- Went out to eat because you didn’t plan your meal – plan & prepare your weekly meals on the weekend
- Missed an early discount for registration – note early discounts so you don’t miss the deadline
- Paid installments, that cost more, instead of paying in full – Pay in full, otherwise you cannot afford it
CNN reports that according to the Consumer Financial Protection Bureau, in 2016, U.S. consumers paid a total of $15 billion in fees for bouncing checks and over-drafting (CNN Money-fees & over-drafting article). $15 billion!!! Wow, that is a lot of money due to the lack of preparation!!!
Money Goggle$ is here to help you save thousands of dollars. I know my simple fixes seems, well, simple. I will tell you my ideas and secrets on how to combat these different money stealing ways. First, I have not used an ATM in probably 15 years. I don’t even know my pin. Therefore, I have spent $0.00 on ATM Fees. Also, after I write out my Simple Monthly Budget, I withdrawal that cash from the bank. This way I never stop at an ATM.
Bouncing a check and over-drafting an account are similar. Basically, being unprepared or unaware of your finances caused these extra fees. Using a checkbook and keeping accurate records will alleviate these problems.
Eating out because you did not plan or prepare your meals can be really expensive. To be honest, this is one area that my family could do a better job. For example, too often, we pick up our kids after work, realize they have practice in 20 minutes and there is no dinner ready. We end up buying something quick like fast food, pizza or a sandwich. We spend $30-$40 instead of eating at home that would have cost of $5-$10. If you take that $20 savings, times that by five days per month, that equals $100 savings. That money could be invested or spent elsewhere. Though we have improved in this area we still need some work. One way we have improved is that my wife will make a few meals on Sunday that can quickly be heated up during the week.
Many organizations or clinics will offer you a discount if you register early. I have seen this discount as much as 20%. A discount of 20% on $300 will save you $60. This $60 will add up over time so take advantage.
I saved the best for last. This scenario is my favorite. Spending extra money paying in installments instead of paying up front and saving money. My simple motto is “pay in full, otherwise you can’t afford it.” We all know that a payment plan is more expensive. However, people will pay in installments for cell phones, furniture, cars, vacations and more instead of paying in full and saving money. My own example is as follows:
My previous school district’s after care program, provided a 10% discount if you paid in full.
- $620 per month ($310 fee x 2 kids)
- $6200 yearly fee ($620 fee x 10 months)
- $620 savings (10% discounted rate)
That is a $620 savings which is equivalent to one month of after care! Essentially, we get one month for free by paying in full! I have heard people say that I would rather invest that money or I can make a better return by leaving it in the bank. My counter argument would be that your day-to-day finances are not to be invested. Any investment you have should have a long-term outlook such as five years or longer. Also, a 10% discount would far exceed any bank dividend that you would receive. Keep in mind that every month you are withdrawing your $620 payment. That means your principal in the bank is shrinking every month and your monthly dividend would decrease.
I know many of you do not have that kind of money in bank to take advantage of this discount but maybe you could. You could save thousands of dollars through preparation, avoiding ATM and bank fees, using a budget, using cash, saving money on early discounted rates and paying in full. Once you have that savings, use my Net Worth Millionaire Plan to put your money to good use.
PREPARATION ACTION STEPS
1-Fill out your Simple Monthly Budget and Entertainment Budget
2-Use cash only-withdraw it at the beginning of the month (no ATM please)
3-Plan out your meals for the week
4-Foreshadow upcoming bills that offer discounts for early registration
5-Pay the full amount, not installments, on all expenses (only one exception-your house)
6-Save 1,000s of dollars
7-Put your extra savings toward the Net Worth Millionaire Plan
In summary, by simply using cash, preparing and planning ahead you could save 1,000s of dollars in fees, early bird discounts and paying in full. Enjoy all of your extra money!!!
