MSN MoneyCentral has produced a list of ten things that people waste money on every day. I agree that, most of the time, the items on this list are money-wasters. There are always exceptions though. Here are my comments on the list:
- Lottery tickets. The odds of winning the big prize are astronomical. What's more, the more times the lottery is played, the more likely that money will be lost overall. Mathematics and statistics are against lottery players every step of the way. It's like flushing money down the toilet every week.
- Expensive coffee drinks. David Bach, author of The Automatic Millionaire, has made The Latte Factor® practically a household phrase as the embodiment of the little habitual expenditures that add up to big bucks in the long run. I was chatting with a colleague about how I had to give up my $2/month all-I-could-drink coffee club at work when I moved over to another building. She mentioned that there was a Starbucks nearby where I could get coffee. I'd much rather brew my own or — gasp! — make instant coffee than pay $1.50 and up for a cup of Starbucks.
- Newsstand magazines. The MSN article talks about impulse purchases of magazines in the checkout line, or habitually buying the same magazine from the newsstand each time a new issue comes out. In the latter case especially, it's far better to subscribe. But, if you're just checking out a magazine to see if you like it, check out a single copy first, because one issue is going to be less costly than a full subscription.
- Dry cleaning. Now, I'm not going to be terribly hard on people for this one, because I am (a) a male with (b) very little need for dry-clean-only clothes at play or (c) at work. At work it may be completely expected to dress the part. If there is a way to get by with clothing that can be washed the same way socks can, then so much the better, though. Also, there are less expensive ways to clean clothes marked “dry clean only.”
- Premium gasoline. The article mentions that there is a possibility that older cars could be spared an earlier death by using premium. I've heard from other people that using gas of a different octane than the recommended octane for the engine — higher or lower — will burn dirtier than the correct one. Basically, premium is just as bad as really low-grade.
- Movie concessions. Yes, soda is waaaaay overpriced at the movie theater, and many theaters won't let you bring your own. (There's good reason for this: the concessions are where theaters go into the black.) But whether you cheap out on these may depend on how often you go to the movies. If it's twice a year (or less) with the family, then it's a treat. I go so infrequently that when I do go with my daughter, I want it to be a lot of fun. But if you're hitting every release, and are doing it just for the movie, then it may be more cost-effective to forgo the food and drink. There are a number of ways to save money if you're a movie lover besides this, though.
- Workday restaurant lunches. Eating out has been a big budgetary drain for us, so absolutely no arguments here. Some of my colleagues eat out for lunch regularly three times a week or more. That's at least $15 or $20 extra per week spent on food.
- Professional manicures and pedicures. Again, uhhhh, I'm a guy, so who am I to talk? I'll leave it to the ladies to battle this one out. 🙂
- High-priced grooming products. About the closest I've come to “high-priced grooming product” is tea-tree shampoo (to try to control dry scalp), and Old Spice body wash (because, well, the man-tastic Old Spice guy made me do it). Otherwise, again, as long as I don't offend people with how I look or smell, I'm happy.
- Premium cable channels. We hardly watch any television, so we get by with basic cable for some of our daughter's educational TV.
What other broad categories of money-wasters plague you or your friends? Or, which ones are forgivable under the proper circumstances?
I am glad that you put lottery tickets first. I can’t believe how many people waste money on those stupid things. Eating out is even worse. I found that I could bring my own lunch to work for a couple dollars instead of spending ten every day at a local restaurant.
There’s nothing wrong with instant coffee. =) Whenever I don’t have time I just drink instant coffee instead of brewing. I swore never to buy Starbucks coffee anymore unless I’m meeting someone.
Personal Trainer! That’s one big waste of money for me, but she was quite the saleswoman. And, it was winter and I had gained 6 lbs.
Massages are totally worth it though!
Sam