PHOENIX — On this Monday Saving Monday, 12News has the top seven ways Americans waste money and how you can be more mindful of your spending.
'I sometimes overshop'
One Valley mom and grandma Catherine Brookins can relate to buying things that she may end up throwing out.
"I do spend the most money on gas and groceries these days,” said Brookins, who lives in Phoenix. “I sometimes overshop, and then I go to clean out my fridge and I get mad at myself because I’m throwing stuff away.”
For Brookins, it’s all too easy to spend money on her loved ones.
“These are grandkids, and they’re even more expensive when they’re grandkids,” Brookins said. “Taking them out to eat… and I’m a teacher, I don’t get paid over the summer, so I have to really kind of budget.”
But, of course, splurging on your grandkids or eating out occasionally can sometimes be worth it.
“It was!” Brookins said.
Eating out, impulse buys, unused memberships and subscriptions add up quickly, though. American households waste an average of $907 every year, according to a survey conducted by the communications agency Cherry Digital.
Financial expert recommends 'two-minute rule'
Valley accountant and businesswoman Sharon Lechter has advised two different United States Presidents in financial literacy and authored 28 books, five of which are on the New York Times Bestselling list.
“My most recent one is How Money Works for Women,” she said.
The New York Times Bestselling author weighed in on how we waste money.
“I kind of divide it into four different categories,” Lechter said. “The first one is impulse shopping… you go to the store to buy one thing and you end up buying five.”
Lechter said this is due to "emotional buying."
“Lottery tickets… there’s a big one,” said Lechter. “You go to the store and buy a lottery ticket, and it’s tied to emotional buying.”
That’s where her “two-minute rule” comes in handy.
“When you realize you have things that you didn’t plan on buying, leave them on the rack, walk away for two minutes let the emotions subside, and more than likely you’re not going to go back and get them,” Lechter said.
Late fees and credit card interest
“A huge waste of money… interest rates are the highest they’ve ever been right now,” said Lechter. “So, we get ourselves into debt, and we have to stop digging because the credit card is just throwing your money away.”
Forgotten subscriptions are also on the list.
“You subscribe to a gym, and you stopped going after the first week, but you’re still getting hit with those fees,” Lechter said. “Online streaming that you signed up for, that just keeps reappearing every single month and you don’t use them anymore.”
Wasted food, food delivery charges and eating at restaurants
Another way Americans waste money – food. All those food delivery charges, eating out and wasted food add up.
“You eat one leg of the chicken and the rest of it gets wasted... or spending a lot of money going out to restaurants,” Lechter said.
Lechter’s best advice for wasting less and saving more?
“Sit down and go through and see what those charges are,” said Lechter.
For Brookins, making a list of what she absolutely needs and sticking to it has been helpful.
“I order it for pick up, and I find I don’t spend as much when I do that,” Brookins said. “I don’t wander down the ice cream aisle.”
According to a CNBC report, the 7 biggest ways people waste money are:
- Paying for insurance you don’t need
- Refinancing your home too often
- Making minimum credit card payments when you can afford more
- Giving too much power to emotional spending
- Paying for unused memberships and subscriptions
- Paying for convenience
- Keeping up with the Joneses
Up to Speed
Catch up on the latest news and stories on the 12News YouTube channel. Subscribe today.