Expenses That Quietly Drain Your Wallet - Get Your Finances In Order
We all know how easy it is to spend a lot of money on something big. But it's also easy to slowly lose a lot of money. This is true no matter how much money you have or how little you have. Here are some expenses that quietly drain your wallet.
Author:Frazer PughReviewer:Emmanuella SheaFeb 13, 202361.8K Shares1.1M Views
You might be spending money without realizing it, which can hurt your health as a whole. Who did it? These are the expenses that quietly drain your wallet. It might not seem like a big deal to forget to renew a subscription or pay a bank fee.
But getting your finances under control can make you feel happier. Improving your money habits, like making a budget and saving more, can help you in a lot of different ways, not just with your finances.
If you figure out what you value most and plan your spending around that (also called "values-based budgeting"), you might be eager to get rid of these hidden costs so you can live the life you want.
10 Expenses That Quietly Drain Your Wallet
12 Common Habits That Are Draining Your Wallet
Millions of Americans and their families are taking a second look at how they spend money because of the coronavirus pandemic. It's more important than ever to figure out where you can cut back and save money.
One easy place to start is by looking at how you spend your money and figuring out when you don't need to. You could add this money to your emergency fund or save it for holiday shopping, which always seems to come up at the last minute.
Subscriptions
Some examples of subscriptions are apps that you pay for but no longer use, gym memberships, magazines, and digital website subscriptions. And with the rise of subscription boxes, you could regularly pay for boxes of anything from clothes to toys for your pet.
These are the hidden costs you should look at first because they will keep coming back to you every month, quarter, or year.
Look at those subscriptions and ask yourself, I know I signed up for that because I was really excited about it, but does it still excite me? Have I been using it? Do I still think it's important?Anything you pay for every month that you don't use or only use because you have to pay for it should be cut.
You might be forgetting to pay for software, fitness or diet apps, music apps, gym memberships, streaming services, or fees for storing data.
Eating Outside Food Too Often
Going out to eat is one of the sneakiest ways to lose money. Even worse is if you spend hundreds of dollars each month at the grocery store but end up eating out more than you cook.
Office lunch dates can cost you more money, especially if they become a regular part of your schedule. So, go out to eat once in a while.
Buying The ‘Latest And Greatest’ Of Anything
Are you a gadget junkie? You might feel like you have to have the newest iPhone or tablet. These kinds of spending sprees are bad for your money. Many times, you'd be better off buying something used or fixed up.
This is true even for big purchases like homes. Older homes are often better built than new ones. But if something old makes you nervous, you might want to buy something almost new:
If you like the idea of building something new, keep in mind that a home that already exists doesn't have to be 50 years old. If you're willing to be the second or third owner, you might be able to find an energy-efficient home with new features for less money.
Phone Bill
Look at your phone bill and compare how much you use your phone to how much you pay. For example, maybe you pay for unlimited data but rarely use more than 1GB per month. Now is a good time to call your cell phone company and make sure you aren't paying for anything you don't need.
And in addition to making sure you're getting the best deal from your current company, you might want to call around to compare plans from other companies.
Either you'll be able to switch to a company that gives you a better deal, or your current company will be willing to match a price you found elsewhere.
Doing Groceries Without A Plan
A grocery list helps you remember what you need to buy and makes sure you don't spend more than you need to. With so many things to choose from, it's easy to get carried away at the grocery store. You can also check out what you already have at home before you go to the store.
Impulse Purchases
Impulse Buying: Why You Buy Stuff You Don't Need
That magazine was at the cash register. The online ad seems to know exactly which shoes you've been looking at. Shopping for food when you're hungry. A last-minute buy is something you didn't plan to buy. Even though they may not seem like much, they can add up over time and may not be in line with your core values.
Ask yourself: Does this meet a real need of mine? When we shop online, we need to be careful. We need to remember how easy it is to buy things with just one click or swipe. Make sure we have time to ask ourselves, "Do I really value that?"
Be careful not to buy something just because it's on sale, buy groceries that aren't on your list, go out on a whim, have food delivered, or buy something in a video game. If you buy things on a whim all the time, it can get in the way of your goals, but every once in a while, it can make you happier.
Owning A Lot Of Stuff
Whether you know it or not, having a lot of things can cost you a lot of money. First, the more stuff you have, the more likely it is that you'll rent or buy a bigger home. You'll need the extra space to store everything.
Second, if you have too much stuff to fit in your house, you'll need to buy a storage unit to keep your extra things. When you have a lot of things, you might also have to pay more for more furniture to store them.
You can save a lot of money on storage if you get rid of some of your things. You can also sell the things you don't need to make some extra cash.
Fees
You probably know that you'll have to pay fees if you're late with a credit card payment or if a check you wrote bounces. But other hidden costs, like those from your cable or internet provider, could be taking money away from you.
Pay attention to both small fees, like the cost of food delivery, and big fees, like those that come with buying a house. Also, keep an eye out for hidden fees like annual account fees or transfer fees that some credit cards have.
The good news is that you can negotiate many of these fees, like cable, car insurance, credit card interest rates, and cellphone fees. Look around for services with the lowest fees, or even better, services with no fees at all.
ATM fees, bank, and credit card fees, fees related to home and car purchases, internet, phone, and cable fees, and concert or movie ticket fees are some fees you might not be aware of.
Everyday Indulgences
You might think that those small, everyday pleasures are just that small, meaningless pleasures. But if you added up all of these purchases in one month, they would add up to a lot.
You can safely cut out things like your morning coffee, a quick bite to eat for lunch, high-end foods at the grocery store, and getting your car washed to save a good chunk of money every month.
Utilities And Gas
Most of the time, we don't think about how much we spend on utilities because we never see the money change hands. We use the water and electricity we want and pay for them at the end of the month.
But if you tried to use less water and turn off your heater and air conditioner more often, you would probably notice a difference in your bills.
The same goes for gas; you'd be surprised at how much difference it can make to plan how you use gas. Plan to do all of your errands in one trip, walk or ride your bike to the store, and carpool to work if you can. If you do these things, you'll use less gas, and you'll probably save a lot of money every month.
People Also Ask
What Is Money Wasters?
It's easy to waste money by shopping at convenience stores, spending money on magazines, and paying high credit card and bank fees. It might be worth your time to take a look at how you spend your money.
What Are Wasteful Spending Habits?
Most people agreed that paying too much for certain fees, paying a higher interest rate on items that were financed, forgetting to return things that don't fit or can't be used, and even using too much energy were all examples.
How Do I Put Money Aside For Expenses?
The rule is to split your income after taxes into three parts: 50% for needs like rent and food, 30% for wants like entertainment or luxuries, and 20% for savings. So, you should try to save 20% of your paycheck each month after taxes.
Conclusion
By looking at your bank and credit card statements, you can see where your money is going when you make a budget. This can help you keep track of hidden expenses that quietly drain your wallet. You might find out that you've been spending money on things you didn't know about.
One thing to keep in mind: these costs aren't always a total waste. Sometimes, they add to what you believe in. Maybe that streaming service pays for some really great shows that you and your family watch together. You have to decide for yourself if something is really worth the money you're paying for it.
Frazer Pugh
Author
Frazer Pugh is a distinguished expert in finance and business, boasting over 6 years of experience. Holding an MBA in Finance from Stanford University, Frazer's credentials underscore his authority and expertise in the field.
With a successful track record in executive roles and as a published author of influential articles on financial strategy, his insights are both deep and practical.
Beyond his professional life, Frazer is an avid traveler and culinary enthusiast, drawing inspiration from diverse cultures and cuisines.
His commitment in delivering trustworthy analysis and actionable advice reflects his dedication to shaping the world of finance and business, making a significant impact through his work.
Emmanuella Shea
Reviewer
Emmanuella Shea is a distinguished finance and economics expert with over a decade of experience. She holds a Master's degree in Finance and Economics from Harvard University, specializing in financial analysis, investment management, and economic forecasting.
Her authoritative insights and trustworthy advice have made her a highly sought-after advisor in the business world.
Outside of her professional life, she enjoys exploring diverse cuisines, reading non-fiction literature, and embarking on invigorating hikes.
Her passion for insightful analysis and reliable guidance is matched by her dedication to continuous learning and personal growth.
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