You may think that most people check every dollar closely and save most of their hard-earned money. And that should go double for those living paycheck to paycheck, right? You may be surprised at how much money poor people actually throw away. Sadly, they often don’t realize they are doing it. Things like overdrafting your bank account can seriously cost you. You may not always be aware of these expenses until you realize you don’t have the money for this month’s bills.
So read on to find some of the most common ways people waste their money even when they have no money to waste. You may find you’re guilty of some of these indiscretions. You can look at these as places to improve your budgeting practices. In the end, you may notice that you are altogether happier and find that the most essential things in life are not necessarily the most expensive.
25. Brand Names Over Generics
Whether you’re buying toilet paper, canned goods, or even toys, be aware that brand names tend to cost much more but have little payoff. There are some instances in which the brand names are significantly better quality. But these are the exception, not the rule. Generic products tend to be just as good if not better than their brand-name counterparts at a significantly lower price.
If you wonder why brand names are so much more expensive if they’re not truly better quality, the answer usually comes down to marketing. The store’s cereal brand does not get the commercials and advertisements that you see for something like Fruit Loops. The extra dollars you may be putting down for name brands are ultimately paying for marketing expenses, not solely for better quality. If you want to be sure, check the labels and compare the ingredients.