No one is perfect and it’s easy to lose money when you make unwise decisions. Despite it getting the best of us, it’s vital to avoid these pitfalls so you can achieve your goals. In a recent discussion online, people shared top ways people lose money fast. Here are 11 costly mistakes they recommend avoiding.
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Gambling on Your Phone
Gambling is big business. Casinos rang up $55 billion in revenue in 2022. Online gambling is a growing component of that. Unfortunately, you can lose cash in a jiffy on your phone.
One person notes the lure of gambling apps, “Hey you haven’t gambled in while. Here are free credits to get you back in the game. Sorry about your run of bad luck. Losing 3 weeks in a row is just bad luck. Here are free credits to get you back in the game.”
Online gambling is a particularly fast way to lose cash quickly. Put the phone down and look for other ways to spend your money.
Purchasing a Boat
Boating can be fun. It can also be very expensive.
“It really doesn’t matter the size, you’ll start throwing money almost immediately into the hole you call a boat. But the bigger the hull, the bigger the hole,” notes one commenter.
If you have the funds, it’s one thing, but if you’re not careful, your boat won’t be the only thing you’re concerned about sinking.
Sticking With Cable TV
Cable or satellite TV is no longer necessary for most people to get the shows and sports they like to watch. Unfortunately, too many people still subscribe to a contracted service.
They do that to the expense of $200 a month. If you can use an over-the-air antenna and one or two on-demand streaming services, you can slash that cost by more than half. You can even use free streaming apps to further lower your costs.
Eating Fast Food
One may not think of eating fast food as a way to lose money quickly, but those $12 meals add up.
“Fast food is by far the easiest way to lose money besides gambling or something. It’s the ultimate money pit that really sneaks up on you. Pack your lunches, kids,” notes one online commenter.
Short-term losses aren’t the only thing either. Lots of fast food can also be bad for your long-term health.
Purchasing Things You Don’t Need
Buying things you don’t need not only causes you to lose money fast, it can also cause debt. The mentality needs a shift.
“Living with the mentality, ‘I work for my money so I’m gonna spend it on what I want,’” says one person.
Unless you want to spend years paying off debt, wisely plan your spending to get what you want.
Having Expensive Hobbies
Hobbies can be fun, but they can also be very expensive.
“Have multiple expensive hobbies. Astrophotography alone eats your money away as fast as you can earn it! Or you can just donate all your money to a charity. Or you can gamble/trade stocks. Or you can just send it all to me. There are plenty of options,” notes one online commenter.
Find a hobby you enjoy that won’t break the bank and your bank account will be happy.
Getting Married
Getting divorced isn’t a cheap endeavor. The median cost of a divorce is $7,000 nationally. That pales in comparison to the average wedding cost.
“A wedding is also a great way to lose money,” adds one person.
They’re not wrong either. The average wedding, with reception, costs over $30,000. Maybe a justice of the peace isn’t that impractical.
Not Having a Budget
Budgeting is often viewed as restrictive. It’s not. It creates freedom to spend based on your goals. Not having a budget is a quick way to lose money as you don’t know where your money is going.
“If you have no plan for your money. That’s lack of budget, the money will vanish without knowing exactly what you used it for,” says one person.
It’s not difficult to create a plan for your money. You can use a free budgeting app to start and simplify the process.
Getting Divorced
While some say getting married is the problem, many people do get married. And many of those marriages end in divorce. And divorce is costly in more ways than one.
One commenter said simply, “Getting divorced.”
Depending on the arrangement, you could end up in a bad financial position.
Taking Advice From Social Media
You should believe everything you read on social media, correct? One person clears it up quickly, adding, “The fastest way to lose money is to trust people on social media.”
I can’t say that I disagree.
Subscription Services You Don’t Use
It seems like subscription offerings are all around us. They offer convenience, but they’re also a money drain if you don’t use the service.
One commenter shares their thoughts rather succinctly, saying “Subscription services that you only use like once a month is a quick way to lose money.”
They’re exactly correct.
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This thread inspired this post.
I’m John Schmoll, a former stockbroker, MBA-grad, published finance writer, and founder of Frugal Rules.
As a veteran of the financial services industry, I’ve worked as a mutual fund administrator, banker, and stockbroker and was Series 7 and 63-licensed, but I left all that behind in 2012 to help people learn how to manage their money.
My goal is to help you gain the knowledge you need to become financially independent with personally-tested financial tools and money-saving solutions.
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