What Are the Top Money Pit Items in Your Life and What to Do About Them?
Most people are familiar with the term “money pit” in that it is an item that you are constantly pouring money into with no end in sight. This constant drain on your finances can lead to a lot of stress and unnecessary expenses in your life. Unfortunately, it’s not always clear what the money pit items are in your life, which makes dealing with them a bit tricky.
Here, we’ll take a look at some of the most common items that people have that tend to put a serious drain on their finances, and that they are most likely better off without.
One of the top offenders when it comes to the money pit terminology is your car. When you purchase a brand new car, there are no issues, it runs great, and repair bills aren’t something you deal with. Over time, as the warranty expires and the car ages, suddenly it can start costing you money just to maintain its basic level of operation and safety.
Typically, the best way to figure out if your car is a money pit is to add up your monthly/yearly repair bills and compare that to the price of investing in a new car. If the cost is pretty close, or more to maintain your current car, then you’ve got a money pit on your hands.
So, what can you do with your car? The Scrap Car Network is an excellent solution for anyone looking to get rid of their current vehicle and make a little money in the process. The way it works is that you visit the Scrap Car Network website, key in your number plate and postcode, and you’ll receive a quote for what you would be paid for your car. If you are happy with the quote, then you can set up an appointment to have it picked up. Scrap Car Network will pick up scrap cars for free in the UK.
Major Household Appliances
While not quite the same level as a car, your household appliances can also be a money pit. Once they start to age, they become less energy efficient, and less efficient all around. This means they don’t do as good of a job as they used to, yet they are costing you more to operate. You also run into the same problem as the warranty expires but repairs and replacement parts are needed.
Again, you can use that same model of looking at how much you are shelling out to keep the appliance running versus the price of a new appliance. Typically, you can expect to get anywhere from 5-10 years out of each major appliance. This, of course, depends on many factors such as how often the appliance is used, how well you care for it, if regular maintenance and cleaning have been done, and the quality of the appliance.
Your TV Channels
Here’s a money pit that isn’t as clear as some of the others on the list but can still be a financial drain. Take a look at what you’re paying each month for SKY or another package and look at the channels you have. How many do you actually watch? A survey was done in the United States that showed the average home viewer only used 17 channels in their cable package. Chances are high that you’re paying for a lot more than 17 channels. Why not look for a way to cut back on the number of channels and then pay attention to how much you actually miss them. You may not notice it at all, which means that SKY bill was nothing but a money pit.
As for the biggest money pit of all, many will give that title to their home. This can be a hard pill to swallow because it’s your home, it’s where you have set down roots. No-one wants to think of their home as a financial burden, but sometimes that’s exactly what it is. The problem is that if you choose to sell your home because it is a money pit, that will reflect in the price you list it for, so you can’t expect to get top dollar. Instead, it’s about whether or not you want to continue to deal with the headaches, work, and constant expenses that it is generating.
Not looking after hour house is like wearing a rain jacket for a beach holiday! It does not make sense.
Identifying and Eliminating Money Pits is Key
At the end of the day, it’s all about identifying and then eliminating the money pits in your life. Money pits truly put an undue financial drain on your resources, and by getting rid of them or replacing them with newer more efficient items, you’ll be able to enjoy a little extra cash in your wallet rather than constantly shelling it out.