It’s good to say no to big purchases like an expensive house or car, but that doesn’t mean you have great spending habits. It’s the insignificant habits and expenses that determine your financial status. Although it’s hard to notice, here are 20 daily ridiculous expenditures that pile into a heap of debt.
Everyday Bottled Water and Coffee
How do you explain waking up daily to toss $3 and $5 bills into the trash? That’s what happens when you buy bottled water or coffee daily. The $4 cup of coffee or water might seem small, but it’s $20 weekly and over $1,000 yearly. Buy a reusable water bottle and start brewing coffee at home.
Using Overpriced Phone Plans
Many people spend over $100 monthly on phone plans with features they don’t need. Unlimited data sounds good, but you’re better off using smaller plans or prepaid options. Check your usage—you might only use 25GB of data but pay for 50GB. The $600 you end up saving can be put to better use.
Subscribing to Automatic Renewals
We’ve all been there. Almost everyone who signed up for auto-renewal or free trials forgot to cancel at some point. These renewals can chip away at your money. You can set reminders to review them monthly or use apps to identify and cancel unused services.
Unnecessary Extended Warranties
Retailers love selling extended warranties because they’re pure profit. Unless it’s for expensive stuff like a car or equipment, the manufacturer’s warranty that covers defects and the additional protection from your credit card are okay.
Excessive Gift Giving
Hello, Santa! Giving gifts is kind, but going overboard will wreck your budget. Even Santa waits till Christmas, but here you are, Santa’s Little Helper. Rather than the often unplanned spending that drains your wallet, choose thoughtful, handmade, or inexpensive gifts like framed photos or letters.
Impulse Buying, Especially Groceries
Remember the last time you went to the store to buy milk and bread? You ended up with chips, chocolate, and a magazine. These impulse buys can easily add $50 or more to your grocery bill monthly. Instead of falling for the colorful displays and snack aisles, please make a list and stick to it.
Always Buying Lunch
Let’s start with the numbers. The meager $12 you spend daily buying meals is $240 monthly. In contrast, a homemade lunch costs about $2 to $3 per meal. That’s $200 saved. Prep meals ahead, pack lunch, and go for sandwiches and salads.
Unused Subscriptions and Memberships
Most people can only maximize that streaming service, fitness app, or membership offer when on vacation or on work leave. It’s okay if you’re busy, but you need to stop losing money paying for services you don’t use. Review your bank statements and choose free alternatives or pay-as-you-go options.
Saving and Not Investing
This good habit can backfire if you leave money idle in a basic savings account. Since most savings accounts have interest rates below inflation, your money loses value over time. For example, $1,000 in a savings account with 0.5% interest won’t keep up with 3% inflation. Learn how to invest.
ATM Fees from Excessive Use of Cards
The convenience of slipping a card into an ATM feels like a luxury until you discover how much you’re paying for it. That $3 fee looks tiny, but using an out-of-network machine only twice weekly is a $300 annual loss. You can use digital payments or make plans to withdraw enough from your bank’s ATMs.
Not Using Public Transportation
Unless you’re wealthy, you should consider public transit to save more money. Car owners agree it’s less expensive than gas, parking fees, and car maintenance. Public transportation, on the other hand, often costs less than $100 monthly. If your city has reliable public transport, take advantage of them.
Failing or Forgetting to Use Coupons, Discounts, or Gift Cards
In 2022, Credit Cards published a report stating Americans have $21 billion in unclaimed discounts yearly, and 47% of adults have at least one unused gift card, voucher, or store credit. Of course, these freebies can’t buy you a car, but you should grab those deals online.
Buying the Latest of Anything
Always wanting the latest stuff is a bad financial habit. Marketing convinces us we need “new,” but it’s rarely true, so you shouldn’t chase the new shiny. Stick with what you have until it’s truly worn out or obsolete. Buying used or last year’s models can save hundreds.
Expensive Dining and Drinks Out Too Often
It’s okay to unwind and relax occasionally, but when the fancy meals become too much too often, be prepared for a dip in your finances. $50 dinner and drinks every weekend is $2,600 yearly. You can learn a few signature dishes and host friends at home at a fraction of that.
Paying Bills Late
Late payments have penalties that can damage your credit score. Missing a $100 bill might mean a $15 late fee, and repeated issues could lead to higher interest rates on loans. You can automate your payments to ensure you’re never late or set calendar reminders to stay on track.
Leaving the Lights On and Ignoring Energy Efficiency
A single incandescent bulb left on for eight hours daily costs $8 monthly. If we multiply that by several rooms, that’s a lot of waste. Switch to energy-efficient LED bulbs, turn off unused lights, and manage them with timers or smart home systems.
Premium Gas (When You Don’t Need It)
Regular gas works fine in most engines; the price difference can add up to $2,000 yearly. Check your car’s manual to confirm the recommended fuel type. Unless your vehicle requires it, you’re wasting money. Stick to regular gas, and don’t let flashy labels at the pump trick you into overspending.
Skipping Homemade Meals for Fast Food and Snacks
Quick stops for snacks or fast food look cheap, but they almost always ruin your budget. The $5 snack or meal here and there quickly adds up to $150 or more monthly [that you didn’t budget for]. Besides the money you’re losing, regular junk food’s health “benefits” should scare you into homemade meals.
Buying Subscription Boxes and Collecting Clutter
These enticing boxes are lovely in the first few months but soon become cluttered and lost cash. Unfortunately, many people don’t realize that the $40 monthly box of items you didn’t choose becomes about $500 yearly. If you love the concept, stick to one box you truly enjoy and cancel others.
Ignoring Financial Education
“Knowledge is power” is true across all areas of life, including personal finance. The easiest way to overspend is to ignore budgeting, investing, or credit management. You can learn about financial literacy and better money habits from free resources like books, podcasts, and online courses.
