Tue 04 Aug 2015 | By:

How to Stop Burning a Hole through Your Wallet

How to Stop Burning a Hole through Your WalletThere are so many articles on the web about making more money;

The internet is flooded with them. I’ve read, of what I can only imagine is, a tiny fraction of them. And I’m pretty sure that now and again, everybody hops onto Google and does a quick search for the exact same thing themselves.

Who doesn’t want to make more money?

The sad reality is that most people who are making these internet searches and looking to make more money, are people who are consistently burning big holes in their wallets for the most ridiculous reasons.

They don’t know how to invest their money properly, so they decide to just look up how to make more. Instead of controlling their spending habits and eliminating big mistakes in their everyday expenditure.

Within this article, I’m going to outline several steps you can take in order to minimize the amount of money you spend on a monthly basis, and get your finances under control. Before seeking new ways to earn more income.


1) Watch Out For Small Expenses

Most people think that the big expenses are where they waste the most money. Maybe you purchase a luxury like a new T.V, a new sofa, some new appliance. It’s going to put a serious dent in your finances, but it’s not where most people lose their money. Especially since these type of items can always be sold later on to claw back some of the money splurged.

However most people blow a hole through their wallet by not watching the small expenses they’re making on a daily basis. Maybe it’s food, and you get carried away grocery shopping or you become a little too fond of take-out. Or maybe it’s drink and you’re buying quite a few pints of beer at the pub throughout the week, or you’re going out for Starbucks a little more than you actually realize.

Maybe you just continue to buy little inexpensive gadgets that you think are fine to buy because they’re cheap and fun. They actually now have websites specifically for doing exactly that. Just take a look at ‘Shut up and Take My Money’.

Each day, those little expenses stack up. They have no resale value. If you spend money on them that’s it. So watch out for the small expenses as they can easily stack up and start to drain your bank account at a frightening level.


2) Significantly Reduce Re-Occurring Payments

Re-occurring payments can often be reduced, but it seems to be the case that laziness prevails. It’s so important to reduce the costs of these types of payments, as you’re obviously going to be shelling out for them on a regular basis.

This includes things like your mobile phone bill, your subscriptions to websites, magazines, T.V channels, you name it. Certain bills like these can be reduced if you don’t necessarily need everything you’re paying for.

You might be paying for 50 different channels but you only ever watch 10. Can you reduce the amount you’re paying for and cut off the excess?

The examples I mentioned above are fairly small expenses; but what about rent, insurance, fuel? Have you ever looked at reducing any of these costs where you can?

Or have you just watched the bills roll in every month and continued to pay them without even blinking twice?

Insurance is often a cost that can easily be cut in half by shopping around. There are some great articles on the web about getting cheap deals on insurance, such as this one on home insurance and this one on car insurance.


3) Invest In Yourself, Not In Material Possession

I can tell by the fact you’re reading this on Startup Savant, that you’re someone who’s willing to invest in yourself, and your future. Yet, this point needs to be touched on. Spending money on yourself by investing in your education, your business, and your own development; is something far different and greater than buying material things for yourself.

So try not to get too caught up in material possessions that you’ll use a couple of times and then never again. You’re far better off investing your money in yourself, where you’ll actually get a return in the future, than waste in on objects.


4) Buy What You NEED

Probably one of the biggest mistakes people make with their money; buying all the stuff that they want but don’t necessarily need. Then what happens – they run out of money to buy the things they actually need.

Do you really need all those clothes? All those gadgets?

Focus on buying what you need before you buy what you want. This way you’ll always have the things that you need, and can hopefully control your other spending habits a little better.


5) Minimize Depreciation On Your Assets

What I mean by this is, anything that you purchased a while ago and now don’t use, sell it as soon as possible. This way you’ll be able to minimize the level of depreciation on the things you own and retain as much money as possible when you go to sell.

Don’t leave things laying around for long periods of time if you’re never going to use them again. Just sell them quickly before they drop even further in price.

Once you take care of your finances and make sure you’re not spending more than you should be, you’ll have more money to invest in your business.

Let me know how you’re going to ‘patch up the hole in your wallet’ by joining the conversation on Twitter!

About Dan Western

Dan Western is the CEO and Founder of WealthyGorilla.com, a website for entrepreneurship, Success advice & motivation. Dan is a young entrepreneur who knew from a fairly early age that his true passion was to make money through his own means and to be able to share his knowledge with others. Join him and be inspired on Facebook or follow on Twitter.