We all do it, many times without even realizing it and then end up wondering- -where does my money go? Michelle Singletary, a personal finance expert, is an award-winning author who has written The 21-Day Financial Fast: Your Path to Financial Peace and Freedom and she has some answers to that question.

These are some of the major ways we all waste money and her advice on how to stop doing it.

  • Gym memberships- You buy them & then never use, but continue to have the fees deducted from your bank account. If you haven't been to the gym in weeks, cancel your membership, (if you contract allows it) -now!
  • Impulse shopping - Unplanned purchases can add up so quickly, (you go to Target for shampoo and end up with $200 worth of stuff in your cart) and before you know it, your disposable cash has been disposed of! When it comes to major purchases, some advisers suggest using Suzy Welch's Rule of 10-10-10. (How will this purchase affect me in 10 minutes, 10 months, 10 years, from now?)
  • Only buying name-brand products - Most grocery store brands are made in the same facilities as your name-brand faves, are the same (sometimes even better) quality and can cost you up to 25% less at checkout.
  • Not returning items - Defective or unwanted items have a tendency to get the "big ignore" and sit in your closet or garage. Yes, it can be a pain to stand in a customer service line or to package something back up and ship it back, but it's your money you're throwing away.
  • Not taking advantage of your employer's 401K match. If you're lucky enough to have an employer who does this, you are essentially throwing away free money! Are you crazy??!!

You know what some other experts say? "You're making progress just by admitting you have a problem". So, perhaps knowing you have some of these issues and then working on them might just help you save a bit more.


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