There are few (if any) legitimate get-rich-quick schemes. Do not believe whatever “Emily Ratajkowski” is saying in your DMs.

There are, however, plenty of get-poor-quick pitfalls you should avoid. Here are five of the biggest ones.

1. Paying for insurance you don’t need

Many people assume more insurance is better, but some types are a big waste of money.

• Identify theft insurance: Most credit cards already include fraud protection, so buying extra insurance is redundant.

• Children’s life insurance: Unless your kid is a toy-influencer, they probably don’t have assets or income to protect. These policies also usually have high fees and poor returns. Instead, open a 529 college savings plan or build an emergency fund.

• Rental car insurance: Your existing car insurance usually covers rental cars, so drive that thing into the ground.

• Travel insurance: Many credit cards include trip cancellation and lost luggage coverage, so check before you buy separate insurance!

2. Refinancing your home too often

Refinancing your mortgage can save money when interest rates drop, but doing it too frequently can backfire. Refinancing involves fees that can cancel out savings if you don’t keep the loan long enough. So…

• Only refinance if you have good credit, can afford payments, and have home equity.

• Calculate the break-even point by dividing refinance fees by monthly savings. If it takes 3-5 years to break even, refinancing again before then is usually not worth it.

• Don’t refinance if you plan to move before recouping costs.

3. Just making minimum credit card payments if you could do more

Paying only the minimum on credit cards leads to high interest charges and growing debt.

• Pay more than the minimum if possible, especially on cards with high interest rates.

• Prioritize paying off the highest-interest debt first.

• If you can’t pay more, at least pay the minimum on time to avoid penalties.

4. Giving in to emotional spending

Listen, I get it. I’m an emotional guy. I’m actually getting a little choked up just writing this! But spending based on your emotions (stress, happiness, boredom - whatever) can quickly drain your bank account! To control it:

• Budget for small treats rather than impulsive splurges.

• Remove shopping apps and unsubscribe from marketing emails.

• Write down potential purchases and wait 48 hours before buying to see if you still want them.

5. Keeping up with the Joneses

This is maybe the easiest way to waste money, and perfectly explained here by the leading journalist, Borat:

“Lifestyle creep”, as it’s also known, is a major problem. So instead,

• Focus on your own financial goals and budget.

• Remember everyone’s financial journey is unique.

• Avoid comparing yourself to others, especially on social media.

• Prioritize what fits your lifestyle and needs, not what impresses others.

Win by not losing

Cutting these common money-wasting habits will help you can improve your financial health, reduce stress, and save for what truly matters.

Don’t let your spending control you, it should be the other way around.

Whether it’s avoiding unnecessary insurance, managing credit card payments, or not buying that life-sized statue of Jar Jar Binks because your heart tells you to, these small changes add up!