9 Money Wasters to Avoid in 2012

Impulsive Crafting

Remember all the stuff you bought because you were going to bedazzle everything in sight? Or how about the entire scrapbooking outfit you hauled home but never took out of the bag? It’s way too easy for those of us who share the impulsive gene to make snap decisions. This year, instead of jumping in with both feet, sign up for a class to check out a new hobby. A few sessions will tell you how committed you are to the craft. If you decide it’s a go, look on eBay. You’ll be amazed what you’ll find for sale by others who got a bit too anxious and bought the whole caboodle. When you consider that enough yarn to knit a sweater can cost $75 or more, or that a beginning scrapbook kit comes in at about $115, looking before you leap will keep hundreds in your wallet. Annual savings: $150

Brand Loyalty

Sure, we all have our brand favorites, but opting to pay double for things that don’t really matter adds up to a lot of wasted money. If you’re a bit hesitant to jump into the store brand scene all at once, start out easy by opting for the store or generic brand whenever it makes absolutely no difference: flour, sugar, salt, spices, milk, eggs, meat, pain relievers—all must adhere to the same federal standards regardless of brand. Once you’re feeling comfortable, start testing things like spaghetti sauce, salad dressings and peanut butter. If you are dissatisfied, return it for a refund. You’ll soon discover that many store-branded items are the name brand version with a different label. Generic or store brand clones are at least 25 percent cheaper than their name-brand equivalents. Always check and compare.

Sloppy Bill Paying

Sloppy bill paying. If you’re a late-payer, you know we’re not talking about chump change here. Late fees on credit-card accounts, mortgages, car loans, automobile registrations and property taxes are breathtakingly high. Instead of waiting for bills to arrive, anticipate the due dates. Better yet, set up for auto bill pay directly with the service provider or use your bank’s online bill paying service. If you do incur a late fee, call immediately. Most creditors will waive the fee if you have a good payment record. So what’s the financial damage you an avert this year by becoming diligent to pay on time? Many credit card companies are charging a $39 flat fee for paying late. The typical late fee on a mortgage is 15 percent of the amount due. Ouch! Make this the year you achieve 100 percent on-time arrivals and enjoy the savings.

Extended Warranties

Statistically, if an item is going to fail, it will do so early on and the manufacturer’s warranty will cover it. Extended warranties are mostly profit for the retailer, which goes to show just how rarely a claim is made during the extended period. If you can’t imagine life without an extended warranty, do this: Open a special account and deposit the money there instead of in a salesperson’s pocket. If the item fails (it probably won’t), you have the money to cover repairs. And if all is well, you get to keep the money. I kept the $495 they wanted for an extended warranty when I bought a big screen television 10 years ago. It’s still working perfectly and I’ve got the $495, too.

Failure To Grab Discounts

Got a youthful driver in the family who also is a good student? You may qualify for a good student discount. Did you recently install a home protection system? Does your car have anti-lock brakes, side airbags or other safety equipment that is more than the basics? Most insurance companies give premium discounts for these and many other situations. Call your insurance agent and ask for a quick review to determine which you qualify. As you experience life changes, call again. Then call once each year for an annual “tune up.” You may find yourself qualifying for even more discounts. By way of example, you can expect a 25-percent discount if you have a full-time registered student who maintains at least a 3.0 grade point average.