Counting Pennies

Have you ever cashed your paycheck, only to see a third of it gone in a week? How often do you find yourself lost when trying to figure out where that money went?

Welcome to the club.

According to a recent survey, over 50 percent of Americans have no idea of what they do with their money: they write no budget, have no savings account and keep no records of their expenses. Experts believe that most of those who deal with “disappearing” money have one (or more) of the following small habits. While they may not sound too dangerous written like this, they do have some serious consequences.

1. Impulse buys. Those magazines and chocolate bars you buy at the checkout counter add up.
2. Snacks. From chips to soda cans, these single-serving, prepackaged foods are extremely expensive (just add them up over the course of a week and you’ll see)
3. Extended warranties. They’re a waste of money. If something does break after three years, you’re a lot more likely to replace it than to bring it over for repair.
4. Bottled water. I actually can’t get myself to drink tap water, but at home I use a Brita filter. If I’m on the go, I’m still willing to pay for bottled water (it’s still cheaper than soda)
5. Prepackaged anything. Buying in bulk is cheaper and nicer to the Earth.
6. Gourmet coffee. Unless you make your own at home, in which case it’s ok to buy one-of-a-kind, expensive beans. Otherwise, spending $4 a day on a latte on your way to work is a really, really bad idea.
7. Cigarettes. Do I need to say anything more?
8. Lottery tickets. You don’t really think you’ll win, right?
9. Memberships you don’t use (how many times have you been to the gym since you signed up?), subscriptions to magazines and newspapers you don’t really read, and classes or things you paid for but never used.
10. Clothes that don’t fit. Do you ever go shopping and love something even though it doesn’t fit. Do you ever buy it anyway thinking you’ll lose the weight and be able to get into it eventually? Don’t. You’ll either won’t lose the weight or by the time you do you may feel differently about the item. Always buy things that fit.

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