6 Ways You Are Wasting Your Money


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Prices of the goods and services in Malaysia have been on the rise in the recent months. In order to cope with the soaring expenses, Malaysians are searching high and low for useful tips to save money to get through difficult times. Instead of focusing on money-saving tips, placing emphasis on your spending habits can effectively help you manage your finances better.

Below are examples of how you are mindlessly wasting your money:

1. You buy for the sake of buying

Nothing beats the pleasure of running your fingers down a brand new leather bag. The feeling of walking in a new pair of heels? Satisfying. Nevertheless, not being able to suppress the desire to buy anything and everything which appeals to you might result in unnecessary spending and this in turn will lower the possibility to set aside sufficient money for savings.

Unless you are diagnosed with Compulsive Buying Disorder (CBD) or Oniomania, which are actual mental illnesses characterized by the obsession with shopping, it is advisable to start investing your money in something that is actually useful and that will bring a return instead.

2. You buy things you do not actually need

Your wardrobe is filled to the brim with clothes you did not even know existed. You have five bottles of body lotions, four still sealed and unused. Three out of six bottles of fruit jams that you bought are expiring in less than thirty days. You buy everything in excess, without the intention of actually consuming them. Fret not, because you are not alone. There are so many people out there who practice similar habits – so much so that author and expert Pamela N. Danziger has written an entire book about it called Why People Buy Things They Don’t Need. According to researches conducted by other experts, it is concluded that people buy things they do not need because this satisfies them emotionally or brings higher status to their lives.

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3. You would rather eat out than to cook your own meal, even if it’s Maggi Goreng

You have a big, spacious kitchen at home but you still prefer the comfort of indulging in someone else’s cooking. The idea of having to get all the ingredients together, chop them up, and have them stirred around in a frying pan leaves you terrified. And don’t forget about the unavoidable cleaning process that comes with it later on!

Cooking may seem like a chore, but it is perhaps the most effective way to save up. Thanks to the rapid development in our country (along with the recent implementation of GST), price levels have been on the rise. One single meal at a decent restaurant (with roof and air-conditioning) in Kuala Lumpur usually start at around RM15, while RM15 worth of fresh foodstuffs would be able to keep you well-fed for a day or two.

4. You buy because you want to keep up with trends

It sure feels great to own the latest iPhone or Samsung devices, but that would mean having to change your gadgets every six months. You would either end up having more than ten perfectly functional phones by the time you reach 35, or you would be forced to sell your perfectly functional phones away just to give way to newer, more popular ones. Trends are ever-changing, and having to keep up honestly takes a lot of effort (and money).

5. You buy things just because they are on sales

Sales in Malaysia take place during every festival – Hari Raya, Chinese New Year, Deepavali, Christmas, New Year’s, Valentine’s Day, and the list goes on. Sometimes, there are even pre-festive and post-festive sales, not forgetting the famous Year End Sales (YES!). Hence, it is not a big deal if you refrain yourself from shopping this coming sale. If there is something you really need to buy, chances are that it will be on sale just a few weeks from now.

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6. You have been shopping at Tesco for 5 years… without a loyalty card

Shopping for foodstuffs and essential household items is inevitable. The total money spent on grocery shopping every month will add up to a large amount. Almost every supermarket and hypermarket in Malaysia offer a loyalty card which entitles you to seasonal promotions, daily member discounts, and reward programs based on the amount of points collected. It is advisable to sign up for a member card the next time you are shopping at your favorite grocery store to ensure that you are able to make the most out of all the benefits offered.

As Benjamin Franklin once put it: “A penny saved is a penny earned”
Take charge of how you manage your money today in order to make the most out of tomorrow. Browse through CompareHero.my’s free credit card comparison tool  to discover the best credit cards for cashback on shopping, dining, petrol and more.