This is a guest post written by Scott Todd
I’m sure many of you can empathise with this author regarding my pay cheque woes. It seems that every month without fail, no matter how hard I try, that delicious lump of cash gets sucked away into oblivion faster than a sugar cube in a cup of coffee. I see this post as an opportunity to vent my frustration, but I also view it as an analysis into how to to properly understand and subsequently address some common financial sink holes to help you maintain more of your pay cheque as a savings account. I hope you get at least get a cheap laugh out of some of the traps I have thrown money into in the past, but I also hope the information legitimately helps a few people save some cash by dodging these areas themselves.
My mobile phone contract.
I have a mobile phone, just like every human being in the free world who has aged into double digits. And like most of these human beings I am a sucker for new, shiny phone technology. So blind is my devotion to these little devices that every 24 months, like clockwork, I happily abandon my old phone that I have paid off in full in favour of attaining a new (and usually more expensive) contract. I convince myself that I need the new phone, and that I use the phone enough to justify the extortionate monthly payment. The sad reality is that simply that I’ve engineered my existence to use this technology even though I don’t need to. I’ve trained myself to become so dependent upon it that I don’t mind shelling out hundreds and hundreds of pounds for it every year!
My personal loan installment repayments.
To be fair this one should have been avoidable if I had been more careful with my financial arrangements. Long story short I ended up having to visit these guys to arrange some short term cover or I’d have been kicked out of my apartment! While the loan did help me keep a roof over my head, it didn’t stop the burning sensation in my soul when I was paying back the money plus a good chunk of interest only a few short weeks later. I still feel frustrated about it now, though that’s the nature of their business isn’t it? Supply and demand.
My Government Tax payments.
I feel like I must put in writing that contrary to my introduction paragraph – I do not advocate trying to dodge your tax payment obligations! I’ve simply included in the list because it’s the universal destroyer of people’s precious wages so I felt like it just had to be on this list. Nothing boils my blood more than thinking about my hard earned cash going towards those in our society who are too lazy to seek employment, or my money being used to feed and heat the prisoners in our jails who decided to operate outside the law. Now I know that taxes are a good and necessary thing – but every time I see the garnish from my wages I can’t help but view it in this negative way. Having said that the occasional tax rebate does help heal the wounds slightly.