When saving money is pitted against your spending habits, sometimes it takes some expert financial advice to snap you out of wasting your wealth, or worse yet, spiraling into debt. With ever-increasing interest rates, inflation and the general cost of living, it’s no wonder that all you have left in your savings account once bills are paid are hopes and dreams.
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However, there may be some more wiggle room to find if you can cut back on the money you’re wasting. Grant Cardone, author of “The 10X Rule,” recently listed a series of ways Americans waste their money every year. According to him, the biggest expense is taxes. “And if Americans used their money differently, taxes would go down,” Cardone wrote.
According to him, here are the top 10 ways Americans waste money.
Dining Out
- $80 billion a year
According to United States Now, Americans spend about $2,700 on eating out per year — with alcoholic beverages alone contributing almost $500 to that budget. The parental phrase of “there is food at home” has never made more sense than when you compare what you spend at a restaurant per meal to what you save when making dinner at home.
Alcohol
- $253 billion a year.
Americans spend over $37 billion annually solely on beer, according to Delphi Behavioral Health Group. As for entertainment, the average American spends $2,628 on it per year, according to Solitaire Bliss. The markup on beer, wine and spirits is exorbitant when paying for it at bars and restaurants, so keeping it for special occasions might be better for your budget.
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Entertainment
- $158 billion a year
You are entitled to have some fun, but that doesn’t mean money isn’t being wasted in certain areas. For example, instead of paying for all the service charges and fees of buying concert tickets online every time you want to see live music, visit your local library as it will often have a community board alerting you to free events.
Lottery
- $100 billion a year
Yes, winning millions of dollars would solve a lot of financial problems, but how much are you willing to spend on a long shot? Per Search Logistics, Americans spent a whopping $105.26 billion on lottery tickets last year, making it the most popular form of gambling in the U.S.
Credit Card Fees
- $120 billion a year
Credit cards may be a necessary part of your daily spending, but paying interest and high fees doesn’t have to be. Only spending what you can afford to pay for on time will save you from tunneling into debt. The Consumer Financial Protection Bureau estimates that Americans paid $120 billion per year in credit card interest and fees from 2018 to 2020.
Footwear
- $135 billion a year
As boots are only typically made for walking, there’s no need to invest in more pairs than you’ll have time to wear. Americans spend $750 a year on shoes, according to Billpin. If you invest in a few pairs of shoes that won’t fall apart and you can wear them for years, you can basically save the equivalent of a rent payment.
College
- $671 billion a year
This is not to say higher education is a waste of money, but some of the things you spend money on during your college years can be cut down to a more affordable price. The average cost of attendance for a student living on campus at a public 4-year in-state institution is $26,027 per year — or $104,108 over 4 years, according to the Education Data Initiative.
Wasted Food
- $400 billion a year
Feeding America’s data indicates Americans waste more than $408 billion each year on food, with the average family of four throwing out $1,600 a year in produce. Being more mindful of how much food you purchase and what you typically throw away at the end of the week can help you edit down your grocery list. It’s better to have to go back to the store than throw money in the trash.
Streaming
- $450 billion a year
In terms of streaming, on average, U.S. consumers pay $48 per month, according to a Deloitte survey. A great way to save is to go through your monthly streaming expenditures and cancel the ones you rarely or never use.
Taxes
- $2.33 trillion a year
For taxes, the Treasury Department said that in fiscal year 2023, the federal government has collected $3.69 trillion in revenue. This includes “individual income taxes, payroll taxes, corporate income taxes, and excise taxes.” Taxes may be inevitable, but how much you pay isn’t as set in stone as you think.
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This article originally appeared on GOBankingRates.com: Grant Cardone: Top 10 Ways Americans Waste Money
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