Let’s face it: Certain items drain your wallet without adding much value. You might not even realize you’re still paying for them because you use them so little.
Without them, you might just be able to wake up and not worry about how much money you have in your bank account. Ditch these items, and you can be one step closer to financial freedom.
1. Cable TV Subscription
Unless you’re a sports fan, paying for cable is most likely unnecessary. Even then, most sporting events have streaming options. Paying $80 every month adds up to $960 annually. Instead, figure out which channels are important to you and research which online streaming options have your shows available. If you’re not tech-savvy, many smart TVs and external devices make it even easier to use streaming apps on your TV.
2. Gym Membership
Most of the time, paying over $25 a month for a gym membership is unnecessary. If you go to the gym multiple times per week and are one of the rare few who use the pool, basketball court, and other gym amenities, you may be getting your money’s worth.
However, most people with gym memberships barely go two or three times a week, if at all. On top of that, they mostly just use the weights when they do go. Be honest with how you use your gym membership, and if you’re overpaying, ditch this expense.
3. Gourmet Coffee Purchases
Coffee connoisseurs will most likely agree that there is a point where coffee just gets too expensive. Popular coffee shops are notorious for overcharging you for a cup of coffee. If you tend to purchase your coffee before heading to work, consider brewing your own at home. Additionally, many places offer monthly subscriptions for unlimited coffee. Brewing your coffee at home is cheaper, but evaluate which option works best for you.
4. Frequent Dining Out
Many dream of eating good pizza, burgers, or steak every night. However, frequently eating out is a quick way to drain your budget. On average, Americans spend hundreds annually. Eating out frequently can cost you hundreds of dollars a month if you don’t pay attention. With rising prices at restaurants, you’re better off eating at home. You and your wallet will be better satiated.
5. Excessive Snack Buying
If you frequently purchase a certain snack, buy it in bulk instead. Spending $5 a day on your favorite snacks adds up. Places like Costco make purchasing nuts, chips, and chocolate more cost-effective.
6. Impulse Shopping
When was the last time you purchased something out of impulse? Whether it was a TikTok video or an ad you saw online, impulsive purchases will constantly derail you from your budget. Instead, use the 30-day rule. The next time you get an impulse to purchase something, hold off for 30 days. If you still want it after, buy it if you have the budget.
7. High-Interest Credit Cards
Did you know that paying the minimum amount on your credit card can take years and can double the balance? Credit cards are convenient, but if you’re not careful, you can quickly dig yourself into debt. It’s best to use only one credit card and pay it off each month in full.
8. Unused App Subscriptions
If you’re unsure which app subscriptions you’re paying for, go under Settings and Subscriptions on your smartphone. If you haven’t used some of your subscriptions in the past few weeks, you’re better off canceling them. Don’t fall into the trap of paying subscriptions “just in case.” Whether paying $1 or $10, unused subscriptions drain your wallet.
9. Brand-Name Groceries
Limit brand-name grocery purchases to save money. Consider making them yourself, too. For example, cookies and other types of snacks are fairly easy to make. Regardless of whether brand-name items taste better, check their ingredients. You may be paying more for food items that aren’t healthy for you.
10. Luxury Brand Clothing
What’s the difference between a white T-shirt from a no-name brand and one from a popular brand? Some would argue that the quality justifies the cost, but you’re likely overpaying for the brand itself.
This doesn’t mean your entire wardrobe should be basic. However, it’s smart to limit branded clothing whenever possible. If you know where to look, you can find quality T-shirts for less than $10.
11. Daily Commuting
Many businesses have shifted more toward work-from-home since the pandemic. During the lockdown period, many saw how productive people can be working from home. This is good news for you since finding a remote job is now easier than ever.
Most job boards, externally and internally, now have the “remote” option, which makes finding remote work a bit easier. If you currently work at an office and have the capability to work from home, ask your employer. You’ll save money by avoiding refilling your gas tank or mass transit costs.
12. Expensive Hobbies
Hobbies are great. They provide a sense of purpose and distract you from mundane tasks. However, they can pose a problem if they’re slowly draining your wallet, like collecting expensive items and purchasing them on credit cards when you can’t afford them.
If you have an expensive hobby, you don’t need to stop it completely. But you may need to get creative with different ways to fund it. Consider driving Uber or flipping things on eBay for extra cash each month.
13. Overpriced Phone Plans
Although you’re limited to the cell phone companies you can choose from, make it a habit to shop regularly. If you find that one carrier offers a plan that can save you 50% of your monthly cost, it may be worth making the switch.
The problem is that many people pay for cell phone bills because they don’t believe they have other options. Shop regularly and get into the habit of monitoring your cell phone bill a few times per year so you’re not overpaying.
14. Extended Warranties
If you purchase an expensive item from a reputable brand, odds are it will last a few years. Additionally, your credit card may offer an additional warranty for some items, making extended warranties unnecessary. Also, extended warranties may not fully reimburse you for the item. Think twice before committing to extended warranties for all your purchases.
15. Luxury Vehicle Maintenance
Purchasing a sports car or a car with luxury features will cost you a pretty penny. Some sports cars cost you $200 to $400 for an oil change. Unless you’re mechanically inclined, you’ll be forced to pay this amount. Do your research beforehand and opt for more economical cars that fit your budget.
16. High-Priced Beauty Treatments
Cosmetic services are increasing in popularity, and this may not be a good thing. Although they make people feel better and are, in some cases, necessary, they can also cost you thousands of dollars. Unless truly necessary, avoid these high-priced beauty treatments.
17. Seasonal Decorations
Purchasing decor items each year can hurt your budget and delay your saving goals. Instead, opt for affordable decor items from the dollar store or ones you only need to purchase once. For example, you can purchase an artificial Christmas tree to reuse each year.
18. Unnecessary Home Upgrades
Kitchens, bathrooms, and roofing may be necessary upgrades. However, if you’re only upgrading your home because you want it to look better, think again. You may spend hundreds or thousands of dollars unnecessarily. Unless you’re selling your home, it’s best to hold off on unnecessary home upgrades.