Common Money Wasters

0:00 Ralph: Ever find yourself halfway through the month and wondering where all your money disappeared to. You're not alone folks I've been there and I've done that. Did you know that one little daily habit could be sabotaging your savings plans? Ready to turn news leaks in your budget into a waterfall savings. well get ready to slay those money, wasting habits and reach your financial dreams.

0:50 Hey there, friends and welcome back to the Ask Ralph podcast where we're on our wacky Wednesday. Your one-stop shop for financial wisdom, with a healthy dose of faith. Let me tell you today's episode is all about saving your hard earned cash. From those sneaky money monsters lurking in the shadows of your budget. Now listen, before I forget. Subscribe to our show and join our email list at askralphpodcast.com. So you don't miss tomorrow's show when we discuss simpler IRS notices. That's one you don't want to miss folks. So we were talking about money wasters, and I said, Don't be afraid of the monster lurking in the shadows of your budget. These monsters, aren't going to jump out of your closet and steal your wallet. Of course with teenagers in your house. Sometimes it may feel that way.

1:31 We're talking about the everyday expenses that seem harmless. But slowly drain your bank account, like a leaky faucet. Except instead of dripping water, it's dripping lattes. And costing you money. So before you find yourself saying adios to your financial goals because of a surprise subscription box addiction. Let's dive into the top money wasters and how to stop them in their tracks. Grab a pen and paper or fire up your favorite note taking app. You don't want to miss this because we're about to become financial ninjas. I told you today's wacky Wednesday. So bear with me. All right. Money, monster. Number one, impulse purchases. We all onew the drill. You're strolling through the store.

2:12 Minding your own business when suddenly a sparkly unicorn pool float with a built in margarita holder catches your eye. Next thing, you know, you're justifying why you need. This inflatable masterpiece. Even though your backyard pool situation is a plastic wading pool for the toddlers. It's kind of funny if you think about it. Well, here's the antidote folks. The 24 hour rule. I live by this myself. Before you swipe that plastic. Fantastic. Take a whole day to mull it over. Will you still love that sequin through pillow tomorrow? Chances are the unicorn pool. Float will lose its luster by then. And you'll be thankful you saved your money for something more practical. Or maybe a real vacation instead of a staycation with a blowup unicorn.

2:57 Let's move on to money. Waster. Number two, subscriptions gone. Wild. truth is folks. We live in a subscription for everything world. Streaming services. Meal kits, meal planning that monthly box of beard, all your certificate, other needs. they all add up. I've had clients tell me that they were paying for the same subscription two times over maybe husband and wife. Well, how do you fix that? You do what I call I've ruthless audit of your subscriptions. Are you actually using all of them? Can you consolidate some services? You know what I found I was paying for Netflix. And I don't remember one or the other services, but when I went on to my Verizon wireless bill, I found that I could get those things for free.

3:37 Remember, you can always cancel and resubscribe later, if something truly sparks joy. Speaking of joy. Let's not forget money. Monster number three. Keeping up with the Joneses. Social media paints a picture of everyone living their best, most expensive lives. Hey, if you're scrolling through Tik TOK. Or scrolling through. Facebook or Instagram. you'll see, everybody's got something you got to have. Well, don't fall prey to that comparison trap. You have to focus on your own financial goals and what truly brings you fulfillment, not the latest gadget, your neighbor just flaunted online. Speaking of phones, money, monster number four, unnecessary fees.

4:18 We've all been there. Late payment, penalties, bank, overdraft charges, those mysterious fees on your phone bill, you can't quite decipher. These add up folks, be proactive, set up automatic payments for your bills. Monitor your account activity regularly, and don't be afraid to call service providers and negotiate those pesky fees. If you don't ask for a reduction in fees, you're never going to get it. You might be surprised at what you can save with a little phone call. I mentioned this a couple of days ago. I think. We have Sirius XM in one of our vehicles. I just let the thing expire because now I know when I call in, I'll be able to negotiate a fantastic deal. Now here's when it might hit close to home for all of you coffee aficionados.

5:02 Money monster number five, that daily latte habit. Now I'm not a coffee drinker. So this one is difficult for me. I get to my office in the morning before I do my recording. And I have a hot tea, but I've never been one to, frequent the latte places. Now, listen, there's nothing wrong with treating yourself occasionally. But that $5 latte every single morning can put a series dent in your budget. Think about that. It adds up. Try brewing coffee at home and bring a thermos to work. You'll save money. And maybe even impress your coworkers with your barista skills. Or at least your commitment to financial responsibility. You don't have to have that Starbucks cup sitting on your desk. Finally, let's talk about money. Monster number six. Emotional spending.

5:43 And I think we've all been guilty of this. There've been times in my life. When I've been going through a tough time and I pop onto Amazon or Walmart or target, or one of those places and, do some retail therapy. And it may feel good in the moment. But it's not a sustainable way to manage your finances. If you're feeling stressed. Anxious or bored. Find healthy coping mechanisms that don't involve swiping your credit card. Well, what are those Ralph? We'll take a walk. Call a friend. Call your mom or dad, call an aunt, her sister, brother. Or channel your inner artists with some free adult coloring pages. My wife loves to do with adult coloring books. Because let's face it. Adulting is stressful.

6:25 I remember being a kid, you know, I couldn't wait to become an adult, man. I would love to go back and be a kid again. Didn't have a care in the world. all right, friends, let's turn this financial knowledge into action. I would like to give you action steps in some practical things you can do. So here's some practical steps you can take right now. to slay those money monsters and become a financial ninja. It's got a cool ring to it. Doesn't it. Number one. I mentioned this in my book, mastering your finances, which you can find on. askralphpodcast.com/store. It's a 47 page. Life changing financial book. Track your spending. Awareness is the key. For a month or 45 days track where every single penny goes.

7:06 There are plenty of free budgeting apps available, or you can create a simple spreadsheet. seeing your spending habits laid bare can be eyeopening can be scary. It can be difficult. It's, you're opening it up. you might be surprised how much you're spending on seemingly insignificant things like daily snacks or eating out for lunch. Listen. I had a client a few years ago. They came in for financial counseling that's something I do offer clients. If you're interested you can book a session with me anyway. They came in, they sat down with me and they said, Ralph, we don't understand where our money goes. Now, these two people were making well over $300,000 between the two of them. So they were by no means, just scraping by the top, but they said, listen, we never have any money at the end of the month. I said, well, here's the easy thing that you can do.

7:47 For the next 30 days, I want each of you to write down every single dollar you spend. And he looked at me like, oh, well, that's going to be pretty easy Ralph. That sounds great. So I encouraged them to write it down, you know? Every single dollar. Well, they came back about 45 days later. We had our followup meeting. And they had made all kinds of lists and, you know, here's what we spent on this and here's what we spend on that. I got to the bottom and I saw ATM withdrawals. And I said, okay, well, what's this. And they say, oh, that's the ATM. We know we go there. We need money for certain things. I said, okay, well, it looks like you spent $3,000 at the ATM machine in the last 30 days. Dead silence. And I said to him, okay, well, where did that money go?

8:27 Well, that's our fun money. I said, what do you mean at your fun money? Oh, well, you know, that's kind of, you know, if I need to get something, you know, I hit the ATM machine or, you know, I can't remember the couple's name to be honest. Well, let's say Joe, Joe hits the ATM machine. I said, oh, where, where does that money go? Well, you know, I might by this by this. I might buy that. And I said, do you understand what you just told me? You deduct $3,000 from your monthly budget in ATM transactions. That's $36,000 in a year of unaccountable spending. Where does that money go? Well, you know, that's none of your business, Ralph. I said, that's fine. It doesn't need to be my business, but it needs to be your business.

9:08 If you want to fix your financial situation, you got to start being honest with yourself. And the truth is I never saw those people again. So my, my goal was to track their spending and make them aware, but they didn't want to know about that awareness. So let's move on to the second action item and that's embrace the power of no. This one might sound simple. But it's surprisingly difficult. You need to learn to politely decline impulse purchase. You remember a polite? No, thank you. Is way cheaper than buyer's remorse or that credit card balance, it keeps going up or the interest that you're going to pay. So you got to embrace the power of no. Another action item become a savvy shopper. it's so easy to just click on buy when you're doing your online shopping or when you're in the store.

9:51 But have you done any research? Are there any coupons or promo codes available? Could you find a similar item for less at a discount store? Is there a used version available in the marketplace app? You know, if you're not taking the time, you know, this goes along with a 24 hour rule as well. Become savvy, do some research. do you really need it? Or at least, look online or there com coupon code. one of the things that I use is a product. called Vista print. they do business cards and all that sort of thing. Well, it doesn't take, but about two minutes to find out that Vista print constantly has coupon codes. Some of them as much as $25 off 25% off. And I'm not promoting Vista print, but Hey. Look around and see if there are any coupon codes out there.

10:32 Another action. Step embrace the. Do it yourself. Life. Now, listen, I have said many times I am not mechanically inclined, so be very cautious on this one. But if you are mechanically inclined or you can find ways to do things yourself, by all means, do them yourself. Instead of paying someone to mow your lawn, wash your car, or fix a leaky faucet. Consider tackling these tasks yourself. You might be surprised by your hidden talents. And the extra cash you'll have in your pocket. Another action item is entertainment on a budget. You don't have to be a hermit to save money on entertainment. Check your local library or your local town for free events, movie nights in the park or museum days of free admission. plan potluck dinners with friends instead of expensive night outs.

11:14 Remember it's all about the experience. Quality time with loved ones. Doesn't have to come with a hefty price tag. And another action item embrace the power of free financial resources. There's a wealth of free financial advice available online and at your local library. Check out reputable financial websites. Listen to my podcast. Now that's a shameless plug, but the truth is I give free financial advice that if you listen to it and put it into action. will change the dynamic. you can also attend free financial workshops offered by your bank or community center. The truth is this knowledge is power. And financial knowledge can empower you to make smarter money decisions.

11:57 And don't, we all want to make those. Another action item is to review your bills regularly. Don't be a passive consumer when it comes to your bills, look at them. Review them. Look for hidden fees or outdated plans, negotiate your cable package. Remember. The threat of cancellation can be a powerful tool. they have those. People that are in retention to try to save you. Well, guess what? They've got tools in their arsenal to do that. Shop around, one of the big things that people don't talk about is shop for better insurance rates. Don't be afraid to switch providers. If you find a better deal. Another action item is embrace the envelope system. Now, my grandparents used to do this. If you're a tactile person who struggles with digital budgeting, look, everything doesn't have to be digital.

12:39 I'm a digital guy. I'm a techno nerd. Everything I do is digital. It doesn't have to be that way. You can use what's called the classic envelope system. Well, how does that work? Will you allocate specific amounts of cash for different categories? You have an envelope for groceries? You have an envelope for gas, you have an envelope for it. Entertainment. And you store them in separate envelopes. And it's really simple folks. Once the cash in an envelope runs out, you know, you've reached your spending limit for that category you're done for the month. Or you're done for the week. It might sound old-fashioned. But for some people, the physical presence of cash can be a powerful motivator. And listen, this is another action item. And this one is huge. Set financial goals for yourself. I say this all the time, what gets measured.

13:20 Gets done. Having a clear vision for your financial future can be a powerful motivator. Do you dream of a debt free future? A dream vacation. Retirement on a beach somewhere. Write down your goals and create a plan to achieve them. Knowing what you're working towards can help you stay focused and avoid impulse spending. It's the same thing with your finances again. I'm going to shamelessly plug my book. They're mastering your finances available at askralphpodcast.com/store. It all starts with a budget. It all starts with measurement or starts with setting a course to where you want to go. And finally, and I can't stress this one enough. Celebrate your wins.

14:00 Financial fitness is a marathon, not a sprint folks. Acknowledge your progress. You know, did you pay off a credit card? Did you stick to your budget for the month? Treat yourself to a smaller reward for your accomplishments. If you really liked that latte, do it once a week. You know, do it every other week, do it every other Friday. Do something, treat yourself to a small reward for your accomplishment. Just remember. Keep the rewards proportionate to your accomplishments. A celebratory cupcake, not a weekend getaway, you know, it's gotta be small, but measurable. Now, before we wrap up on remind our listeners, I haven't told you already to visit our podcast page askralphpodcast.com. There you can leave us a review, share your thoughts, or even send us a message with questions for future episodes.

14:43 Maybe you've got some great ideas for people to save money, record those for me, send them in an email. I'd love to share those with other people. And while you're there, make sure you join our email list every week, we're doing a $25 Amazon gift card drawing. And if you're not a member list, you have no chance of winning. So sign up yourself and tell others. And like I said, you can also schedule a consultation with me right there on the website. Well, folks, I hope you're inspired to take on those sneaky money wasters and turn them into financial wins. Remember this. Mastering your money. Isn't about deprivation. It's about giving yourself the freedom to live the way you want. So just to recap. Today, we talked about tracking your spending to see where those hard-earned dollars are really going.

15:25 Learning the potent power of saying no to impulse purchases. Embracing savvy shopping habits at comparison, shopping and coupons. Discovering the joy money saving magic of do it yourself. And finding fun and creative ways to enjoy budget-friendly entertainment. That's a lot. But if you put these things in action, you will see huge results. Remember. Small changes today can have a big impact on your financial future. Keep being financially savvy friends. And as always say, God bless you abundantly.