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Sometimes we waste money on things we don't need without even realizing.
- Sometimes we waste money on things we don't need without even realizing.
- It can be difficult to spot things that are wasting cash because an item's affordability is subjective based on situation and personal preferences.
- Here are five things that may be a waste of your money.
People often talk about personal finance in terms of large money decisions, like deciding whether to buy a home or creating long-term savings goals. But over time, the little financial decisions, many of which occur on a daily basis, matter too. And it can be hard to know where to draw the line between needs, wants, and wastes.
When it comes to purchases, waste is anything that you don't get any benefit from or use, Jennifer Faherty, a New Jersey-based certified financial planner, told Business Insider. According to Faherty, you can avoid wasteful purchases by doing the following:
- Figure out how much money you can allocate towards discretionary spending
- Make sure each purchase fits into your spending plan
- Ensure you need and will use each purchase
- Determine the value each purchase would provide you, given personal preferences and lifestyle
To help you find and fix money drains in your spending habits, here are five things Faherty says are common wastes of cash: