If you're planning to save money for your home purchase, watch out for the hidden money drains. A huge drain on the budget is that “little” coffee habit. If you spend $5 per day at Starbucks, did you know that is $1,825 per year? Over 10 years, that adds up to $18,250. Over the life of your 40 working years, spending merely $5 per day adds up to $73,000. So look at what you are spending on coffee, snacks, alcohol, and fast food. It can add up to a staggering amount of money, which should be going back into your household bank account.
Other examples of “hidden” money drains are credit card late fees, returned check overdraft charges (NSF, “not sufficient funds”) from your bank, and cell phone charges for over-minutes-usage. If you add it up, you may be shocked how much you waste on needless fees every year. It is like taking your hard-earned paycheck and flushing it down the drain.
Lastly, I do not have to remind you that if you still have any secret “vices” or addictions, stop them immediately! Stop your discretionary costly habits so you can put that money right into your pocket. You will save money instantly, you will feel better about yourself, and your family will thank you, too.
Read more in our book, "Buy Your First Home", http://tinyurl.com/nrvmgc7.
Image courtesy of Chris Sharp at FreeDigitalPhotos.net
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