There are many ways that people overspend on a regular basis. They include costs that could easily be avoided, or reduced, by customers willing to do some market research, shop around, or plan ahead. In a downward economy, these useful tips can markedly help consumers reduce their unnecessary expenses. The following is a list of 25 things that many people commonly overpay for, and it most likely includes at least one thing that every person is guilty of spending their hard-earned money on from time to time.
Pseudo-Health Products
There are a number of products marketed specifically to people trying to live healthy lives. They are often presented as “low fat”, “all natural” or even as being “high protein”. But some of these products may actually be full of other non-healthy ingredients, and can be high in sugar. As a result, “protein bars” can end up just as unhealthy as candy bars, while costing up to five times as much.
Brand New Technology
Buying brand new technology is one way to spend more than is necessary. It is well documented that technology prices come down considerably once new products have been on the market for several months to a year. Additionally, waiting allows time for other companies to release competitive technology, presumably leading to better overall products becoming available in the marketplace.
Bottled Water
This is probably the most overpriced of all regularly consumed products. Over 2/3 of the world is covered in water, and filters to covert ‘tap water’ into filtered water are readily available for under twenty dollars. However, millions of people choose to $1-2 on this convenience item each day.
Individual Cups of Coffee
Individual cups of coffee purchased anywhere, whether from restaurants, gas stations, or coffee shops, are invariably priced high. Especially when compared to what one could buy and prepare coffee for in bulk at home.
Prepackaged Food
Buying prepackaged food items such as sandwiches, sliced apples, or desert cups is one way of overspending on products that are relatively easy to make. They also often cost several times more than if one were to prepare these items and store/serve as single servings.
Premium Audio Equipment
Premium audio equipment often costs a considerable amount more than mid-range electronic equipment. And, the disparity in quality is often confused with a matter of taste, or it may not be discernable to the everyman.
Apple Brand Accessories
Apple has built a cult-following over the past decade, and they are able to demand premium prices for many of their aftermarket accessories. There are, however, a number of manufacturers that make products that are compatible with their mp3 players and other products, available for a fraction of the cost.
Sending a Fax from a Business Center
There are a number of free web-based fax services, for which you only need an email address and a scanner. This process can be even easier with an editable PDF file. Sending faxes from places such as Kinkos can cost $1 per page for local, and $2 per page for long-distance faxes.
Car Maintenance at The Dealership
Unless a car is under warranty, going to a dealership for a repair is one sure way to overspend. Car dealerships often prey on the fear of car owners and promise that certain work can only be done by authorized dealerships. Dealerships are also less-inclined to negotiate prices, something that should be done with any type of auto maintenance.
Music
Customers now have the ability to compartmentalize the purchase of music to the individual song level. No longer must consumers purchase entire albums that they may be uncertain about. There are also new services like Pandora.com that offer a dynamic way for people to consistently listen to new music, with the only stipulation being that the listener does not own a hard/digital copy of the music.
Buying a New Car
Buying a new car is a well-documented, poor use of money. Little else need be said about an investment that regularly looses up to 30% of its value within 24 hours of purchase. Add the price of financing a portion or the entirety of the vehicle, and you have the recipe for one of the most illogical purchases on earth.
Package Phone Deals
Most regularly, phone companies sell customers ‘package deals’, which include certain local and long distance services, as well as several other add-ons, such as call-waiting, call-forwarding or caller ID. Many customers do not know they may choose a solitary service such as local calling only. Many DSL customers have land-lines only because it is necessary to operate their DSL – for these customers, especially those that have mobile phones, the objective should be to get their land-line expenses as low as possible.
Buying Additional Warranties for Electronic Products
The typical lifespan of electronics products are 3-5 years. A warranty that last five years may protect you from having to buy a new DVD player after four years. But, with the rate at which technology develops and its price deflates, it is unreasonable for a warranty to cost up to 50% of the item’s purchase price. It is seldom worth the extra cost for something that many customers will upgrade before the needs for repair or replacing.
Late Fees and Overdraft Fees
Paying late fees on credit cards and bills, and overdraft fees on bank accounts can be a disheartening use of one’s hard-earned money. Especially when a minimum payment on a credit card of $15 is missed, resulting in a late fee that can be as high as $39 (and perhaps result in an APR% increase). Overdraft fees can also add up, especially when they are made in quick succession, resulting in fees for each transaction made while an account is overdrawn.
Non-Bank ATM Fees
ATM Fees can add up. They can also be slightly misleading; it’s not unusual for ATM convenience fees to cost $2.00, and for the card-issuing bank to charge up to an additional $2.50 as a non-bank ATM Fee. As a result, it may cost up $4.50 to withdraw $20.00.
Parking Tickets
Often times, parking tickets are the result of either laziness or a failure to pay attention. Depending on the city, they can range anywhere from $39 to $99 for a basic parking ticket, and the price can continue to go up if the ticket is paid late.
Subscriptions to Print Publications
With the increased popularity of online publications, print media is becoming less of an worthwhile expense. Most print publications’ online counterparts offer the same articles and features, and it’s usually entirely free – often with archives too.
DVDs
For the first time since their introduction, DVD sales are slumping. This is a result of there now being many alternatives for individuals to watch movies without having to purchase them. Netflix offers unlimited monthly rentals, and websites such as Hulu.com, enable users to watch thousands of its titles for free.
Film
Except for use by photographers, film has become all but irrelevant. Digital cameras allow users to view photos immediately after taking the picture; the decision can be then made to delete the picture, or to save some form of it – either digital, or a print, or both.
Home Fitness Equipment
It seems that most people who to purchase home fitness equipment rarely use it. Paying for this type of equipment can often equate to several years of gym membership dues. And, for example, with a treadmill, the equipment is often not useful for a full body workout, such as what one would have access to at a gym.
Gambling
Most people gamble with a vague sense that they may one day strike it rich. Others, play for entertainment. It cannot be denied that – especially at a casino – the odds are stacked against most gamblers. In any case, gambling is often the source of grief and frustration – presumably, at the thought that any money lost could have better been used by depositing it into one’s money market account.
Paying Full Price
Perhaps a silver lining to a downward economy is that many types of products are now being sold at either discounted prices, or vendors are more willing to consider price negotiations. Even if this were not the case, there are a multitude of websites where customers can do price comparisons, or find deals on overstocked brand name or high-end products that vendors and manufacturers are desperate to get rid of.
Impulse Buys
TV infomercials are constantly trying to convince people that the advertised product is absolutely necessary. A number of obvious and subliminal marketing methods are used to sell these products. Consumers should try and make a point to research before they buy, and not fall prey to aggressive solicitation – whether it is from television ad, or from a door-to-door salesman.
Designer Clothing
With the increased popularity of department store brands such as Zara and H&M, designer style clothing is becoming increasingly accessible. Stores such as these offer prices much more affordable than the design houses that inspired their wares. For those who are not as concerned with fashion, there are a number of ways to cut costs in this area such as buying second-hand, or shopping at stores such as Target and Wal-Mart.
Flowers From a Florist
Flowers are often overpriced, especially at florists, and always around the holidays. Grocers often offer flowers at a fraction of the cost than gift-related specialty shops. This alternative is definitely worth considering given that the lifespan of flowers – once cut – is only several days.
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This photo copied from Anti-Earth Hour facebook
