Managing your finances can sometimes feel like going up a creek without a paddle. It’s hard. However, with the cost of seemingly everything on the rise, it’s now more important than ever to properly manage our budgets so that we can pay for our everyday expenses and still save money.
If you’re looking for ways to save money every month, here are some expenses that could be silently draining your budget.
1. Daily Coffee Shop Visits
No matter how much you enjoy your cup of coffee, visiting a coffee shop every day is money wasted. For example, paying $5 or more for a cup of coffee may seem cheap upfront, but it’s costing you $140 monthly or $1,680 annually. Even if you don’t go to coffee shops daily, consider buying your coffee in bulk and making it at home. You’ll pay less than $1 per cup of coffee doing so.
2. Eating Out Frequently
Who doesn’t love having good steak or pasta served to them? However, those plates add up. For example, Americans spend over $150 per month dining out. Although a $10 or $20 meal may appear cheap upfront, regularly eating out can cost you $1,800 annually. If you’ve been wondering why you’re constantly missing your budget goals, check your calendar’s dinner dates.
3. Unused Gym Memberships
January tends to be a popular time for many to join the gym. Eventually, however, many stop going and continue paying without showing up. Even if your gym membership is just $10, it’s money wasted if you never use it. Most gyms also have annual fees on top of monthly fees. If you want to invest in fitness, try getting some basic equipment to use at home, like dumbells or resistance bands.
4. High Cable TV Bills
If you’re still paying for cable, consider yourself a loyal customer. With many streaming options, the value of cable doesn’t stack up. Most cable subscribers pay over $60 a month, assuming they don’t have additional packages. If you have a favorite show on cable, consider finding an alternative streaming service that offers it.
5. Expensive Cell Phone Plans
If you spend over $100 monthly on your cell phone for a single line, you’re most likely overspending. A quick hack to save a few dollars per month is to call your cell phone provider and ask them for a discount for being a loyal customer. They are more likely to offer you a discount to keep your service than risk losing you as a customer.
Don’t fall into the trap of good marketing. Do your research, test out different brands, and find one that delivers the best bang for your buck.
6. Impulse Buys
Did you know that Americans spend an average of $150 per month on impulse purchases? Whether it’s a TikTok video showing you a cool gadget or a good ad on the web, we’re now targeted more than ever to purchase different products or services.
Instead, try to use the 30-day rule: No matter how badly you want an item, leave it in your online cart for 30 days or write it down somewhere on your phone. If you still want it a month later, purchase it if it’s within your budget.
7. Premium Gasoline
Not too long ago, regular gasoline was $2 per gallon. Many car owners would occasionally fill their tanks with premium gas believing it was smart. Although there’s no harm in putting premium gas in most cars, it’s no longer wise to do so if not necessary. Nowadays, gas prices are more than $4 for premium. Putting premium gas on a car that doesn’t require it will quickly drain your budget.
8. Bottled Water
Stop buying individual bottles of water. Paying $2 or $3 or more for water is money poorly spent. Instead, purchase a 48-pack of bottled water for less than $6 at your local Costco. For a more eco-friendly option, get a reusable water bottle. Tap water is safe to drink in most places in the U.S. If you don’t like the taste, you can get a filter or flavoring to make it more appetizing.
9. ATM Fees
Paying $2 or $3 for ATM fees might seem small, but it adds up. Also, if you’re using a credit union ATM to withdraw your money from Chase Bank, both the credit union and Chase will charge you fees, running the total to $5 or more. If you’re constantly using ATMs from other banks, consider switching ATMs or opening a checking account with the bank that sources the ATM you frequently use.
10. Late Payment Fees
Despite our best efforts, at one time or another, we’ve all been hit with a late payment fee. Instead of paying it, dispute it with your merchant. Most are understanding and will waive this fee, assuming you’ve disputed within a reasonable time frame and normally make your payments on time. If you’re constantly late with your payments, consider changing the bill due date or downgrading your service.
11. Credit Card Interest
Avoid paying with credit as much as possible. Consider closing all your credit cards except for one. Don’t be fooled into believing that closing a credit card will jeopardize your credit score. Although it will drop a few points, it will recover in just a few weeks.
According to Experian, the average consumer credit card debt is over $6,000. If you carry a large credit card balance, you’re most likely paying interest each month. If you have a credit score over 600, consider opening a new credit card with a 12–18 month no-interest promotion. Then, transfer all your balances to this card.
12. Extended Warranties
Most warranties are a waste of money. This will vary for everyone, but if you work from home and are careful with your items, why pay an extra $10 or $15 monthly for phone insurance? Instead, save this money and use it to purchase a new phone.
13. High Electricity Bills
On average, most households spend $100 monthly on electricity. If you’re spending more than this, take the time to do an electric audit for your home. List all old appliances that may be due for an upgrade and habits that can be changed. Although it may feel hopeless trying to lower your electric bill, for the amount you’re spending, it’s worth a try.
14. Brand-Name Groceries
It’s no secret that groceries are getting more expensive. This is also a reason why many restaurants are driving up their prices. If you’re paying for brand-name groceries with little thought, you’re overspending.
Consider opting for a lesser-known brand. The ingredients may be just as good but cheaper than even brand-name grocery items that are on sale.
15. In-App Purchases
If you have an iPhone, navigate to your Apple ID settings and go into “Subscriptions.” Here, you’ll see all the active subscriptions you’re currently paying for. The process is similar on Android. In-app phone purchases tend to sneak past many since they’re usually small. However, if you haven’t used an in-app purchase in the last few weeks, it’s safe to assume they’re draining your budget.