6 Things People Spend Too Much Money On
Everyone knows they should probably be saving more money. And while it might seem savvy to skip the occasional impulse buy, don't be too quick to pat yourself on the back when you refrain from buying yet another pair of ripped blue jeans. In times like these — when the recession is here and a carton of eggs feels like an investment purchase — we have to step it up a bit more to actually pad our savings accounts.
For many, the reason they can’t save money is they’re too afraid to face their finances. We worry that we’ll never be good savers and live in fear of our bank balances. There’s a culture of shame surrounding what “they” label “stupid” money decisions. Not to mention the constant anxiety about not saving enough. All this creates a negative feedback loop that inhibits people from learning about their money habits.
This shame is the prevailing narrative surrounding money advice. Far too many money experts are older white males — wagging their fingers at pesky Millennials and self-centered Gen Zers, making idiotic decisions and not buying houses.
Yet younger generations are saddled with outrageous debt. As inflation rates and housing markets rise — that outdated American dream of the Colonial house and picket fence becomes absolutely unattainable. So, when it feels like there’s no goal in sight, it’s tempting to take the nihilistic approach and spend-spend-spend rather than save. Don’t forget, these generations are coming of age in the “YOLO” era.
In authors Emma Pattee and Stefanie O'Connell’s CNBC article “Personal finance advice relies on shame; what if we tried empathy?” They say: “From the over-simplified math of David Bach’s “The Latte Factor,” to Dave Ramsey’s condemnation of nearly all debt, to the media’s obsession with extreme frugality and early retirement, the message is clear: If you’re struggling financially, you only have yourself to blame. In this mythology, only once an individual takes full responsibility for their situation, will they be able to make the so-called right choices in order to achieve financial prosperity.”
You can’t simply put on a Joe Rogan podcast and magically change your life. Let’s just get to the point and actually speak about the main thing keeping people down: capitalism. So until we get rid of that, inequality will persist and the small-minded powers that be will blame the people suffering from it and for it.
However, it’s not all revolution or Rogan. There is a middle ground. By overcoming your fears you’ll be better equipped to take a peek at your finances and address the issues that are buried there. Rather than restricting yourself by a word like budget, try the term spending plan. It combines the thrill of spending with the intelligence of a plan. With this new term and ideology to hand, perhaps you’ll be able to set aside your money to save.
A spending plan isn’t intimidating — especially with the help of apps like Meet Cleo, which keep it real and keep you on track. By doing what a good friend would, theMeet Cleofinance app will help you to face the numbers and actually do something with them. You don’t have to make a mortgage your goal, but socking the money away can’t hurt.
Here are 6 ways you can shave down those numbers on your spreadsheet and cut costs:
No, I won’t be plugging the house hacking trend here — wannabe millionaire landlords exploiting the lack of affordable housing is not a fun investment strategy for me. However, rent is usually people’s biggest expense. If you can reduce this, it goes a long way to helping you save.
A lot of people don’t know that you can negotiate your rent. Instead of meekly accepting the price offered, you can present your landlord with a figure that works better for you. In a competitive housing market, this will be less effective. But some buildings offer incentives like a few months free. See if you can snag one of these deals. If your lease is almost up, try to renegotiate your rent. It costs landlords a lot to move you out and identify a replacement tenant when it would be cheaper to keep you. Give it a try. What do you have to lose but a couple of hundred dollars shaved off your living expenses.
After rent, food is our second-largest expense. Between groceries and eating out — we’ll get to that — what we eat plays a huge factor in how we spend. While many people will tell you to head to Costco or Walmart to shop in bulk, take a breath and consider your shopping needs. Bigger isn’t always better when you buy more than you can eat because you think you’re getting a deal. It’s clear that bulk shopping isn't the answer for everyone. Shop smarter, not bigger. Go to the grocery store with a list and stick to it. To keep it interesting, maybe allow yourself one spontaneous buy, but trust me. Lists are law.
Like with grocery shopping, the key to curbing impulse shopping is allowing room in your spending plan for small indulgences. Allow for dinner out or delivery once or twice a week, then no more. That way, you’ll eat all the weekly groceries and truly savor those meals out. Two birds, one stone.
You Guessed It … The Latte
Joe Rogan and Co. will tell you that the daily Starbucks run is ruining your life. However, if there’s room for it in your spending plan, go ahead and keep your Starbs if it really lifts your day. For some, taking a walk to their local coffee shop is all that kept them going during the pandemic — and even now. But if hitting your local cafe is a mindless habit that you don’t value, sure, replace it with coffee at home. The key is intentionality, not punishment. Keep your small indulgences within the parameters of your spending plan.
Do you have a wardrobe full of clothes but still feel like there’s nothing you can wear? That means your clothes aren’t following the rules of intentionality, as outlined above. Instead of hopping on microtrends and buying everything on the sale rack, take your time and consider how it will fit into your daily life before purchasing.
Challenge to you right now: list everything you think you’re subscribed to right now. Then go through your credit card statements and itemize all the actual subscriptions. I guarantee you’ll find some you’ve totally forgotten about. Unsubscribe to them immediately. Too often, we forget what we signed up for and end up paying for it months or even years after the free trial is over. Then check through what’s left. Do you need every single streaming service? Do you need every single app? Your screentime and your savings will thank you.
Looking for a job? In addition to encountering those annoying never-ending job interviews you may find yourself face-to-face with an artificial intelligence bot.
Companies worldwide increasingly use artificial intelligence tools and analytics in employment decision-making – from parsing through resumes and screening candidates to automated assessments and digital interviews. But recent studies claim that AI does more harm than good.
While AI screening tools were developed to save companies time and money, they’ve been criticized for placing women and people of color at a disadvantage. The problem is that many companies lack appreciable diversity in their data set, making it impossible for an algorithm to know how people from underrepresented groups have performed in the past. As a result, the algorithm will be biased toward the data available and compare future candidates to that archetype.
The City’s Automated Employment Decision Tools (AEDT) law is designed to offset the potential misuse of AI and protect job candidates against discrimination. It was enforced on July 5th, 2023 in New York City - with other cities and states expected to gradually follow suit. Employers must now inform applicants when and how they encounter AI. Furthermore, companies have to commission a third-party audit of the AI software used, and publish a summary of the results to prove that their systems aren’t racist or sexist. Job applicants are able to request information regarding what data is collected and analyzed by the AI. Violations of the law can result in fines of up to $1,500.
Replacing Human Hiring Decisions
However, should a job applicant want to opt-out of such impersonal judgement by a bot, the new law's scope is quite limited.
While the law specifies that instructions for requesting an alternative selection process must be included in the AI screening disclosure, companies aren't actually required to use other screening methods. Not to mention that the law only applies to AI in hiring and not any other employment decisions. It also wouldn't apply if the AI, for example, flags candidates with relevant experience, but a human then reviews all applications, making the ultimate hiring decision.
Some civil rights advocates and public interest groups argue that the law isn’t extensive enough and that it’s even unenforceable. On the other hand, businesses say that it’s impractical, costly, and burdensome, and that independent audits aren’t feasible.
Responsible use of AI in hiring
Although this law may be a good first attempt to assign more regulatory guardrails around AI, it remains to be seen if it ensures the responsible use of AI in hiring processes. At the end of the day, perhaps recruiting talent should remain a human-made decision.
The good news is that AI can help companies without harming potential job candidates in many ways – such as connecting new employees with internal organizational information and company benefits during onboarding. Or helping employees to do their jobs more effectively rather than replacing them.
There’s all this talk about solo travel. And for good reason — no wasting precious time waiting for others to get their act together, take the plans out of the group chat and actually buy the tickets. Going solo, you can be spontaneous. You can plan your trips according to your precise tastes. You can hop on any flight and fly awayyyyyy.
But what if each time you flew you’d get a free ticket? That’s what you get with the Southwest Companion Pass.
Award status, upgrades, lounge access — there are many perks in the frequent flier game. But one of the coveted holy grails is the Southwest Companion Pass.
What is the Southwest Companion Pass?
The Companion Pass is part of Southwest’s Rapid Rewards program. You get to choose one person to be your “companion,” and they fly with you for free (plus some taxes and fees) on every flight. That’s right. Two for the price of one. That’s half off each ticket if you split it! Whether you’re flying with a partner, family member, friend, or anyone else, they can tag along for free.
And it gets better: once you earn the pass, you can reap the rewards for that full calendar year … AND the next. That’s why people go mad trying to earn a companion pass during the early months of the year. The sooner you qualify, the longer you can use it.
There are also no blackout dates. There are no limits. And if you didn’t purchase the ticket (think: work travel, your companion, or a generous benefactor), there are no restrictions! As long as you’re the one on the plane, your companion can also … be on the plane.
You can also switch out your designated companion 3x a year. So, no need to stay in a relationship simply to get the most out of your companion pass! Ghost and fly away — with a whole new companion!
If this sounds too good to be true — it’s not. But there is one small catch. It’s kinda tough to earn this mega reward.
How to qualify for the Southwest Companion Pass?
You can qualify for the pass in one of two ways:
- Fly 100 qualifying one-way flights
- Earn 135,000 qualifying points in a calendar year.
Clearly, this is no small feat — especially if you’re trying to qualify ASAP.
So how do you actually earn the Southwest Companion Pass?
Don’t worry, there’s a path to earning this amazing reward without climbing on 100 flights or spending an exorbitant amount of money.
Earning 135K reward points may seem completely impossible, but it’s easier than it sounds. Simply sign up for a Southwest Credit Card and turn those spending habits into a rapid rewards account. Through the Rewards Priority Credit Card, earn points when using local transit and commuting, plus score major points and miles whenever you spend.
Stay with me here. This is not some scheme to get you into credit card debt. Many airline cards come with potential savings, giantic rewards, awarding you points, and cashback with every purchase you make that can be redeemed for travel. And often they can come with passive sign-up bonuses. If you spend a specific amount of money within a certain timeframe of opening the card, you can be in for a windfall of points.
Now that’s where the companion pass comes in:
- Southwest Rapid Rewards Premier
- Southwest Rapid Rewards Plus Credit Card
- Southwest Priority Credit Card
- Southwest Rapid Rewards Premier Business Credit Card
- Southwest Performance Business Credit Card
Southwest has three personal cards and a business card. Each of these cards offers rewards between 30K-80K points. In the past, people could open two cards and get a bonus that granted enough points to almost meet the minimum. However, with new restrictions on personal cards, you can only get one bonus every 24 months. Boo!
However, this doesn’t apply to business cards. If you’re eligible, have good credit, and not likely to spiral into insane credit card debt, you can open a business card and a personal card, and accrue 100K+ points. The Rapid Rewards Priority Credit Card will get you points after you spend money in no time.
Now to earn the rest of them.
The secret to gaining these credit card points is to plan your card sign-ups around big purchases. Just before a recent move, I opened a card . . . and the rewards came rolling in — a small balm to ease the pain of how exorbitant moving can be.
Put everyday spend — especially big purchases or bulk items — on your Southwest credit card and watch your award points quickly add up. Typically, you earn 1 point per $1 spent on your Southwest card and 2 points per $1 on actual Southwest purchases.
But there are other ways to earn points, including:
- Flying Southwest: Booking travel on Southwest earns more points. The cost of this travel will be worth it with your companion pass
- Shopping from Rapid Rewards Partners: Purchases with Southwest’s “Home & Lifestyle” and “Shop and Dine” Partners also earn Companion Pass qualifying points. While you shouldn’t make gratuitous purchases, browse Southwest’s partners to see if you could earn extra points for items you'd be purchasing anyway. All this, simply from enrolling in their Dining Program and shopping with their partners.
So there you have it! And since it’s almost Spring, get to earning and soon you’ll be flying two for the price of one!