Don't trash your cash

As the recession continues to batter many parts of the world, now's the perfect time to look at the specific money wasters in our life.

The embarrassing truth is that every month, many individuals face the daunting prospect of desperately trying to make ends meet just before payday. The reason? Mindlessly spending money on purchases we frankly do not need, such as takeaways and branded items, for example.

Emirates Business has come up with its top 10 money wasters, and how to avoid them. But we also want to hear from you. Email your savvy saver tips and ideas to money@business24-7.ae.

1 Coffee

This one is a no-brainer, but we're all guilty of doing it: grabbing a coffee from a high-end chain on the way to work.

Let's do the math. If the average takeaway cup of café latte measures 470ml and costs Dh15, then you're paying approximately 3 fils per millilitre.

If you opt for the homemade version, a 100g container of coffee starts from Dh16 – 32 fils per 2g spoonful – and a litre of milk averages at Dh5 – less than a fil per millilitre. So a 470ml cup of homemade coffee costs 32 fils. For fairness sake, we'll add an additional 10 fils for water and the electricity it takes to operate a kettle, bringing it to 42 fils.

That's 0.06 of a fil per millilitre, meaning your high-end cup of coffee is marked up by an approximate 4,900 per cent.

Saver solution: Invest in a flask and spend the time it takes to get to the coffee house at home preparing a coffee to go. You'll be saving on a lot of calories too.

2 Cigarettes

According to the World Health Organisation, approximately 5.5 trillion cigarettes are produced globally each year and are smoked by over 1.1 billion people.

Aside from the fact that they're a complete detriment to your health, smoking 20 a day will also burn a very big hole in your pocket.

With an average 20-pack of international brand cigarettes costing, arround Dh7, you could be wasting Dh2,352 on tobacco per year.

Wouldn't you rather use that on your children, contribute to a charity, and most importantly, maintain good health?

Saver solution: Yes, it's easier to say you'll quit than actually do it, but there are plenty of ways to cut down from using nicotine patches to visiting a hypnotherapist. Plus, why not set aside a moneybox and add Dh7 to it every time you're tempted to buy a pack? You'll see your money grow in no time.

3 Interest

With today's fast-paced life, not living within your means is the biggest reason you land in even more debt. Interest is a fee paid on borrowed assets, including loans, shares, consumer goods through hire purchase and even credit cards.

Reader Maha Ibrahim, 31, a Dubai-based engineer, admits that she only started to save some money when she settled her loans and credit card bills.

"Paying interest is the worst waste of money you can have," she says. "That's why banks are always offering loans and unlimited credit cards. But there's no such thing as a free lunch – banks make more than their fair share."

Saver solution: Stop spending more than you can afford. If you feel you can't hit the mall without spending hundreds of dirhams on pointless purchases, then leave your credit card in your car unless for real emergencies.

4 Energy resources

Earth Hour (www.earthhour.org) wouldn't exist if it didn't make a difference. During Earth Hour 2008, for example, external lighting on several landmarks in Dubai were turned off and street lighting dimmed by 50 per cent. The Dubai Electricity and Water Authority (Dewa) reported savings of 100 megawatt-hours of electricity. But not only is saving energy great for the planet, it can save you loads in bill payments too.

Saver solution: Dewa's website, Dewa.gov.ae, offers numerous tips on conserving energy.

5 Brand names

According to psychologist Ernest Dichter's motivation research, brands unconsciously advocate that buying them can improve your chance at meeting physiological needs. But the hard, cold truth is that most of the time, it's the same product in fancy packaging. An Abu Dhabi-based supermarket manager, who spoke to us on condition of anonymity, said: "Marketing and advertising a food or drink item doesn't make the product taste or work better. It just adds to the price of the product."

Saver solution: Next time you're out shopping, consider swapping branded products for the supermarket's own or buy unbranded products instead of the expensive fancy stuff. Also, do your weekly shop at the local co-operative store instead of a posh supermarket. And visiting at non-peak times – such as midnight – means you'll get done quicker and you get fresh produce that's just in.

6 Designer labels

Similarly to brand names, it can be easy to fall into the designerwear trap, especially in this region. However, during these economic times, more people are reconsidering spending Dh5,000 on a shirt, when they could probably get 10 shirts for that price at a high street chain, often in the same mall.

Saver solution: Don't let trends influence your shopping principles. No matter how much magazines try to promote a certain item; if it doesn't fit your needs, don't buy it. If you need an item for a special occasion, why not visit Mapochette.com, which is the UAE's version of the popular Bagborroworsteal.com.

7 Duplicate spending

Have you ever bought something, only to find out that you already had whatever it was you just bought? According to 45-year-old David Baker, he does that all the time.

"I discovered how bad I was when I moved house," he says. "I found audio cables from 20 different places stored. I had enough of them to open my own Sharaf DG."

Saver solution: Spring clean! Assign a drawer for each type of item (tools, cables, etc…) and make a list of everything extra that you have. If you have a lot of duplicate items, it may be worth selling them at Souq.com.

8 VIP club and concert tickets

So you bought that Dh695 VIP ticket to see your favourite rock star live, but rather than stand right at the front of the stage and be treated to complimentary beverages, you found yourself having to battle for seats at the end with not even a free bottle of water thrown in.

Your friends, meanwhile, had the same experience with regular standing tickets for Dh295 each. Truth is, most VIP deals aren't VIP at all – they just end up making the promoters a lot more money. In fact, these should be called VEP: Very Expensive Purchase.

Saver solution: As soon as a club or concert event is announced, buy your tickets. Cheaper tickets tend to go more quickly, you don't want to be forced to buy the expensive alternative.