If you have ever heard a leaking bathroom faucet in the middle of the night, then you know the literal and figurative sound of money dripping away. Similarly, without careful planning, the drops of losing nickels and dimes in time can add up to an ocean of lost money. Take a financial wrench to these three common leaks:
1) Review your auto insurance coverage: Many people continue with the same insurance policy year after year without looking into the competition. If you keep doing what you have been doing, then you will keep getting what you have been getting, which could be a larger bill than required. The needs for families change every year, and changing a plan or even switching could reduce the monthly outlay.
2) Use a digital, programmable thermostat: If you do not currently have a programmable thermostat in your home, think about getting one. If you already have one, make sure you are taking full advantage of its features, especially those that allow you to program a different temperature for different days of the week. On average, every degree you raise your thermostat in the summer or lower it in the winter saves 2% on your energy bill, according to the U.S. Department of Energy.
3) Make a grocery shopping list: American families throw out an incredible 25% of the food and beverages they buy each year, according to the Natural Resources Defense Council. Considering that the average family of four spends more than $1,000 each month on groceries, that is a huge waste of money. You can prevent overbuying if you write a shopping list before you go to the market and plan your weekly meals ahead of time. Once dinner is over, freeze your leftovers for future enjoyment.
Did you know? Fixing money leaks may not be hard, but it does require research, discipline, and attention to detail. You can always find new ways to reign in your spending, and push yourself to change those pricier personal habits.