Even though the economy has been up and down, many are still struggling to make ends meet. In fact, it’s estimated that only half of the households in the USA are financially secure. That means that the other 50 percent struggle one way or another to make ends meet. If you fall into this category, you might be guilty of some of these most common household money problems. Getting your finances under control may seem impossible, however, it doesn’t need to be. Read on to learn some of the top household money problems and how you can fix them today
Spending Too Much for Food
One of the most common money mistakes people make is overspending on food. Although this happens most often when eating out, overspending in the grocery store is just as bad. Buying prepared foods usually doubles your grocery bill, and if you’re short of time, buying pre-cut fruits and veggies can make your bill soar. The easiest way to solve this problem is to stop eating out and only shop with a grocery list. That’s not to say you can’t enjoy a meal out with friends, however, you should limit how often you do it. Instead of once a week, you can scale back to twice a month. When it comes to saving at the market, create meal plans and only buy what’s on your list. You should also avoid shopping on an empty stomach.
Paying Too Much for Insurance
Insurance coverage is another expense that can empty your bank account. Why? Because it’s not uncommon to sign up for it and then completely forget about it. Your rates might be higher than they really need to be but without taking the time to shop around, you could be paying too much. Thankfully, there are ways to save money on insurance costs. You can save money by searching for personalized rates for your home and auto insurance needs. In some cases, you can bundle them together to save even more money. Just be sure to research several options prior to making any changes. As your life situation changes, so will your insurance needs.
Not Saving for a Rainy Day
Thinking you can start saving tomorrow is another huge mistake. While it’s not untrue, you never know what the future holds. In addition to being laid off, what happens if you or a family member needs emergency medical care that isn’t covered by insurance? Medical care should factor into your overall estimations because there’s a number of expenses that can blindside someone if they had not saved for them, from a present value and damages calculation to doctor visits, and so much more. Many people are skipping doctor appointments because they can’t afford them, but are actually dying as a result! It’s more than essential to start thinking your health is also a wise investment. At the very least, you should be saving 10 percent of your monthly take-home pay each month. Even $50 a month will come in handy if you need emergency cash. Just remember to set up separate accounts: one for savings and one for incidentals.
Not Updating Appliances
If your washer and dryer are older than you, it’s time to make a change. Outdated appliances are known energy and money wasters. They usually need to run longer to get the job done, which leads to hyperinflated utility bills. Even if it costs more upfront, invest in newer models to save money now and every month on your electric bills. You should think about upgrading your showerheads and plumbing if it’s too old.
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