Lost in transactions: where you lose money

There are many ways in which we can and do waste money and especially for those of us who enjoy a very privileged lifestyle as guests in the UAE where we enjoy a high standard of living coupled with, for many, a steady supply of disposable income.

Being cash affluent often leads us to squander money and forget the real value of it. For many, they often enjoy more disposable income than they have had in their lives before!
With no offence to anyone, or any business, I would like to consider just some of the ways in which we can easily waste money.

Energy: Let us first consider where we live and look at a couple of things we waste there. How often for example, is the air conditioning left on to the point that you need a coat to survive or lights are left on when there is no one in the room? A real waste of electricity!

Food: Wasting food through purchasing more than is necessary or serving too much food which gets wasted costs us money. Eating too much food is also bad for our health!
Why not save money by preparing food at home instead of wasting money by regularly eating out? Why waste money at a coffee shop when you can make great coffee at home or in the office? Save money by entertaining more at home and trying out the new recipes that you were always going to try?

Gardening: Watering the garden is costly and more so when excessive water is used often killing plants with the perceived kindness of over watering or turning the lawn into a swamp. Do we also waste money by leaving the tap running when our teeth are being cleaned?

Cleaning supplies: Why do we spend money on disposable cleaning supplies when we can economize with reusable mops, brushes and dusters made of cloth? Paper towels can waste your money, a cloth that can be washed and used many times and can save you money.

Exercise: How many people use a powered walking machine, burning electricity when a walk in the park can achieve the same result? While on the subject of exercise, why do people pay for a gym membership for a full year and then manage to use the facility for just a couple of months at most. Good money for the gym owner, less money for you!

Leisure: Why waste money for a beach club membership when the UAE Government provides us with such fantastic public beaches, or do you like letting your money flow through your hands like grains of sand! You can spend a lot of money on a cinema ticket or hire the DVD of the same in a few months time for a fraction of the price of the ticket!

Kid's birthday: A children's birthday party does not have to be a major social event which can be a costly production using a bouncy castle etc. or a cinema trip with candy, popcorn, food and of course the cinema seat making it an expensive viewing and of course the transport to get there. Why not organize yourself a great party in your home?

Transport: Transport is an interesting money consuming subject. Consider first how you can waste money on a new vehicle. Why not save money by purchasing a vehicle between one and three years old. You will not have to take the big chunk of deprecation on initial purchase and in most cases you can get the same warranty.

We are all aware of the heavy traffic we experience, especially in Dubai. I find my small car very comfortable for sitting in the morning and evening commuter traffic. Why do some people need a four by four with a gas guzzling engine to sit in the traffic? Are the seats more comfortable or do they enjoy seeing their money go down the drain?

Also, when you fill up with petrol why do some people use expensive high grade when standard grade is more than adequate for their vehicle and saves them money?
Always remember to get competent advice from a reputable insurance broker before you insure your vehicle or otherwise, you could be wasting your money by spending more than you need to.

Credit Card: It is also easy to waste money on using high interest credit cards for your credit needs when it may be less expensive to use a loan for your requirements. Manage your money carefully and ensure that you keep a minimum balance in your account, if possible, so that you do not waste money by incurring bank charges.

Finances: People often waste money by not conducting a regular review of the finances. Save money by regularly meeting with an Independent Financial Adviser and ensuring that all your financial needs are taken care of and you are getting the maximum return on your investments.

The writer is Business Services Manager, Nexus Group of Companies, Dubai