One common money mistake is to confuse necessities with luxuries. Often people grew up with these items, and cannot seem to fathom life without them. Even though they struggle with paying the monthly bills, they do not think of cutting back on the luxuries, because they mistake them for necessities. Others may think that the bill isn’t that big, so it really doesn’t matter. It is surprising how much the little things add up. Here are five common luxuries that many people consider necessities.
1) The most common luxury that people seem unable to part with is cable or satellite TV. This really is not a necessity. There are other forms of entertainment that are available for much less money. If this seems too extreme, you can start by cutting back your package. You will be surprised at how much money you can each month by doing this.
2) Another luxury is a cell phone. This can vary according to circumstances. Some professions may require a cell phone. If you feel that you need a cell phone for safety reasons you can purchase a pay as you go phone for significantly less money a year, and still have the protection that a cell phone provides.
3) Eating out and convenience foods are another luxury that many people cannot imagine doing without. You will be surprised how much money you can save by simply switching to making food from scratch at home. If you eat out quite a bit, trying cutting back. You may want to limit eating out to once a week or once a month. You can also save money by choosing less expensive restaurants to eat at.
4) A new car is another luxury that many people believe is a necessity. You can save thousands of dollars by buying a used car. You may also want all the upgrades on your car, but these are not necessary either.
5) Many people believe that you need a new wardrobe every year or every season. This is not a necessity but a luxury. You can save money by simply limiting yourself to one or two new pieces or outfits a season or a year.
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