8 ways Canadians waste money on less important purchases – Avoid these at all cost

It has never been easier to waste your hard-earned money. Think of how convenient online shopping is, with speedy one-day delivery, one-click shopping – you can get your hands on a brand new jeans or a gadget in a matter of hours.

An occasional indulgence surely won’t break the bank but if you are getting into the habit of “small purchases” of things that you do not truly require, you may end up wasting more money than you can imagine. This will make it harder for you to save for your future or for bigger purchases, like a mortgage.

Let’s take a quick look at some of the most common ways Canadians waste their hard-earned money.

  1. Not shopping around

The fastest way to purchase an item is to head to the first website or store and buy it from there. It may save you some precious minutes of your life but it may not be the inexpensive way. You can very easily spend more money that you need to.

You never know you can easily find another online store who is selling the product at a lower price. Even when purchasing life insurance, you should always shop around so you get the highest return on your investment. A life insurance broker can easily help you out by shopping around at no additional cost.

  1. Purchasing branded items

Another easy way to waste money is to buy branded products. You might think that this does not apply to you because you do not waste money on brand name products like Ray Ban or Gucci.

But then, you probably are buying brand name products in the form of Kleenex, Band-aids, and Tylenol – and you do not even realize it.

These brand name products might not seem expensive, but you can almost guarantee they will be more expensive than their generic counterparts.

  1. Eating out regularly

Before COVID-19, eating out regularly was the norm. It is undoubtedly convenient to place an order or go out to eat, especially after a long day at work or trying to balance everything at home. But it can also add up quickly as far as the bills are concerned.

Once a week is okay, but doing it regularly signifies huge trouble as far as physical and financial health are concerned.

  1. Neglecting house and car maintenance

It is true that regular car and home maintenance costs money, but avoiding it can be even more expensive. You could end up with a leaking roof or a broken car engine. It will cost much more to repair or replace.

  1. Paying for services you do not even use

While signing up for services like a virtual gym membership, you may have had the best intentions. Maybe you even thought that committing to the monthly payments would give you the boost you needed to work out regularly. But if you don’t use any of these online courses, it’s a huge way to waste money.

  1. Overpaying for Life Insurance

Life insurance is a necessity unless you are sitting on loads of cash. It is worth the investment because it is the best way to protect the financial future of your family even when you are not there.

But when it comes to life insurance plan, more is not always better. Most Canadians overpay for coverage because they think the more the coverage, the better it is. They do not shop around to find the right price.

Over insuring is just a wastage of money. This is why we strongly recommend that you connect with an experienced life insurance advisor to get the right amount of coverage for your family.

Avoid wasting money

You might be an expert at financial planning, but it is still very easy to waste money here and there without even realizing it. Knowing what to look for puts you a step ahead to spot these traps and avoid. The benefits may look too petty on the hindsight but over time these add up way more than you can imagine.