3 Things That People Spend Way Too Much Money On and How to Stop Doing It*

If your goal is to achieve financial independence and retire early, you will need to be proactive. Achieving financial freedom requires a purposeful effort to achieve your goals. While many people seek ways to make their fortune, it is equally important to take care of the money you already have. Saving money might not sound like fun, but it is possible to maintain your lifestyle while spending less. Interested to know how? Here are some of the things that may be draining your bank account and how to stop:

• Fashion

Do you have a taste for branded fashion and looking good? If so, the chances are that your passion for fashion eats pretty heavily into your monthly budget. If you are dedicated to buying labels, then this isn’t something that you need to give up altogether. Instead, you need to shop smart. If you wear designer eyeglasses, then check out websites such as Eyeglasses.com that offer a selection of designer frames at lower prices. For clothing and accessories, you can pick up plenty of bargains online from designer outlet stores; just check that they are reputable and selling genuine goods before you make a purchase.

Another way to save money is by using a discount code on your purchase. I remember being a student and wanting an outfit for every big event. I would have loved a designated site with codes for websites such as asos where I could quickly pick up something to wear before the big night out.

• Skincare

If you are a beauty obsessive that is always searching for the next miracle cream, you probably find that these coveted products come with a high price tag. But, did you know that there are many highly effective products that you can buy for a mere fraction of the price of those brand name must-have creams?

Instead of automatically buying heavily advertised products, you may want to go a little more low-key to make some significant savings. Cult beauty brands have never been as popular as they are right now. Instead of buying an expensive cream that features many different active ingredients, consumers are looking to buy these active ingredients separately to save money. As many of these products use basic packaging and do not use paid advertising, they can keep costs low. Buying the ingredients separately enables you to have complete control over the ingredients at a fraction of a traditional skincare product’s cost.

• Cars

Buying a brand new car and driving in a car with that feeling of ”newness” is exciting. But buying new is also extremely costly. New cars cost big but often depreciate fast. However, many people do not consider the rate of depreciation when they buy a brand new vehicle.

Forget about buying gas and other running costs; depreciation is the biggest expense you will face as a motorist, even if you don’t realize it. Research shows that new cars lose an average of 50.2 percent of their value in their first five years, which represents a significant cost for car owners.

To prevent depreciation from eating into your retirement fund, you have two options. Firstly, buy a used car that is a few years old and benefit from paying a reduced price for the car, or you could choose a vehicle that holds its value well.