Most of us waste at least some money. Whether it's throwing out unused food or overspending on gadgets, we all could conserve more. To figure out how, focus on these five R's.
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Personal finance blog Budgets Are Sexy explains the five R's of wasting money (adapted from a similar set of rules aiming to reduce physical waste in the home). The simple guidelines aim to ensure that if you're spending money, you're at least spending it effectively. The five R's are:
- Refuse: You don't have to say yes to every single event or costly service.
- Reduce: You can probably save money on some existing bills. Possibly by just asking.
- Reuse: Your old smartphone is still good for something. Use it for a new purpose rather than buying new gadgets.
- Resell: If you have to get rid of old stuff, at least make it worth your while.
- (Don't) Rot: Saving money doesn't mean much if you're not growing your financial future. Make good investments and think long-term about the sustainability of your finances.
Of course, a good deal of financial advice already falls into these categories, but it's a handy way to help think about how to approach your financial life.