If you ask a foreigner to describe an American person that they know, they will most likely say something along the lines of materialistic, arrogant, and wasteful. Not just this, but on several occasions, you can see why America is well-known for being a consumerist society. As Americans, we have the freedom to object to these insulting words, and we do so, as we should!
We do, however, leave a substantial sum of money on the table in a variety of ways. Whatever you like to buy or indulge in, learning to control your spending is essential. By developing healthier money habits, such as limiting your wasteful spending habits, you can put money aside for emergencies, save for a vacation, or pay off debt.
What Are Some of the Most Wasteful Spending Habits of American People?
The majority of Americans are lucky to live in a country where their fundamental necessities are addressed. However, is it reasonable to spend money on name-brand items when there are less expensive options available?
If we consider what the majority of people deemed wasteful, then a number of expenditures come to the fore. Among these, paying a lot of money for a certain subscription or fee, paying a higher interest rate on borrowed products, failing to return items that do not fit or cannot be utilized, and even using too much energy were among the most commonly agreed-upon examples.
That’s not all there is to it, though. Let’s take a look at some of the most common wasteful spending habits that we could do without:
The Morning Lattes
Before coffee shops popped up on every corner, people used to prepare their own coffee. As a culture, we appear to have moved away from it. You won’t need the caffeine to get your heart racing if you look at how much money you spend on that sugary concoction over the course of a month or two.
While picking up an aromatic and flavorful cup of coffee in the morning every day may feel like a great refreshing routine before going to work, it is not so good for your bank account. You will end up spending about a hundred bucks per month, which makes it up to over a thousand dollars per year if you buy one cup of coffee every morning. If you order more than that every day, this amount can quickly add up.
You do not have to give up your morning cup of coffee to save money. Making coffee by yourself will probably cost you about a tenth of the total amount. So, do you think you should be indulging in such wasteful spending habits? Start off by brewing your cup of coffee at home with an insulated bottle that keeps your coffee hot or cold just the way you want it.
Endless Mobile or Internet Shopping
Speaking of wasteful spending habits, do you ever browse online shopping sites while waiting in line at the store, in the doctor’s office, or on public transportation? If you buy something every time you are waiting or trying to get somewhere, then even if it is modest, you can end up with a hefty bill at the end of the month.
Express Shipping Options
Have you ever found yourself feeling desperate to buy that cool top that you saw online? We urge you not to pay extra to get your online item delivered overnight. Allow four to fourteen days for processing, it is not as if the top will not fit if it arrives a week later.
Opting for express shipping for the sake of getting your hands on your newest purchase as soon as possible is a natural impulse. However, it is one of the wasteful spending habits that might deplete your cash account.
If you are looking to get your items as quickly as possible then look at Amazon Prime which not only gives you express shipping but many other perks.
Gym Memberships that You Almost Never Use
People sign up for health club subscriptions at the start of the year, but by the end of the month, the treadmills are deserted. When you consider how much the average monthly membership costs, you realize that it is a big investment with minimal benefits if you only go once in a while.
So, if you do not use your gym, cancel your membership and the automatic draft that comes with it. Instead, you can go for a jog around the block or do some push-ups when you feel the desire to exercise.
Tobacco, Nicotine, and Alcohol
Tobacco products are already expensive, especially after you add the amount of tax you pay on them. In New York State, where tobacco taxes are high, low-income smokers spend around a fifth of their income on cigarettes.
Studies also suggest that cigarettes account for up to a whopping twenty percent of Americans’ wages, or roughly one-seventh of their total earnings.
Another one of the wasteful spending habits among Americans, which is alcohol. The average American spends around two to three percent of their income on alcohol which is around three out of every hundred dollars earned.
Eating or Dining Out
There is absolutely nothing wrong with getting out with friends for a bite to eat once in a while. However, if you are eating out every day or ordering a meal several times a week, you might want to reconsider.
An average American spends little more than three thousand dollars per year on restaurants and takeout. That’s enough money to go on a trip or get some house renovations done! We recommend that you only prepare your own lunch and only dine out on Fridays, with meal nights limited to once or twice a month.
The Final Word
Consumer spending is directly related to the US economy and there are several wasteful spending habits that play a huge role. What people buy and how much money they spend on non-essentials indicates their tastes, habits, and vices. As a result, what America buys is a self-portrait of the average American shopper in terms of economics.
