Are You Paying Too Much For Too Little?


You’re not alone if you waste money on a few things that provide little or no value. Paying too much for too little happens to almost everyone, even the most budget conscious people. Moreover, you’re also not alone if you’re not even aware that you’re spending too much on something that you could buy for less. Since these expenses are small, you don’t even notice them. However, they do stack up, and at the end of the month, you’ve depleted your paycheck, struggling to pay the rent in full, and living on Ramen noodles.

Here are three examples of things that you might be wasting money on and how some simple solutions can help you stop wasting money.

Paying too much for car insurance

There’s no doubt about it—car insurance is important. It’s not only a legal requirement, but you’ll be glad you have it if you’re involved in a car accident or need to pay for some major repairs. However, it’s only worth getting comprehensive insurance, if you’re driving a new car. If you have an older car, you may be spending too much on car insurance premiums over the course of a few years. 

A simple solution is to switch to liability insurance coverage.

Paying too much for credit card interest rates

Are you paying too much in interest rates? A simple way to find out how much you’re paying on your credit card is to look up your interest rate in your statement. This tells you how much you’ll pay for your line of credit if you keep a balance on your card.

Once you’ve figured out how much you’re paying, then do some basic research by visiting personal finance blogs and asking questions on money-related forums to see how far your credit rate is above the average for your particular credit score range.

If it turns out your credit card interest rate is too high, you should call your credit card provider to negotiate a lower rate. Talk about how you’re getting offers from competing providers with a much better APR and mention your responsible history.

In order to keep you as a customer, they will probably shave off a few points. Other ways of reducing your APR is to transfer the balance from your high rewards cards to one with a lower APR. Finally, you can simply pay the balance off in full. This will help you get rid of the angst of interest rates completely.

Spending too much on eating out

The reason you eat out as much as you do is that it’s simple, convenient, and the food is delicious. Unfortunately, it’s also going to rapidly deplete your bank account. All these delicious meals have a price tag.

The obvious solution is to take your own packed meals and snacks to work. This will reduce your temptation to go out and eat when you’re starving after your morning or evening shift at work. Packed meals are simple: a few sandwiches, as well as nuts, seeds, and fruits.

The next thing to do is to go to the grocery store more often. However, it’s surprising how just a few bags of groceries can add up to so much! What’s more, when you look at your receipt, you don’t see anything, other than that bag of potato chips, that you’d consider an extravagant purchase. Your money is going out in packaged meals, where everything is done for you.

While making ends meet is never easy, one way to eat well yet pay less for is to eat simple, nutritious, and hearty meals that you can easily prepare from home. All you have to do is Google the right recipes to put things together.

Two reasons to save

There are two good reasons why you should think about saving money

  1. The most obvious one is that you‘ll have fewer financial emergencies and suffer less. It’s embarrassing telling the landlord that you’re one paycheck short of the rent and its miserable living off peanut butter sandwiches. 
  2. The less obvious one is that your money can make you money. When you have money, you can invest it to make more money. You don’t necessarily have to invest it in the financial markets. You could also invest it in courses and certifications that could increase your salary.

In conclusion, although it can be a daunting task, take a look at ways you may be paying too much for something. You’ll often find that there are simple remedies or alternatives that will allow you to keep more of your money for paying essential bills and creating a brighter future.


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