Which Unnecessary Expenses are Hurting Your Wallet?

We hear the term “unnecessary expenses” often when talking about how to save money and while we all deserve to enjoy the money we earn, there are some spending habits that can quietly chip away at your financial goals. Usually, these spending habits are things we can do without as the items or services purchased are not necessarily things we need.

If you’re looking to cut back, build savings, or improve your budgeting skills, identifying where your money is slipping away is a great first step. Here are ten common unnecessary expenses that may be draining your bank account.

1. Unused Subscriptions

Streaming services, gym memberships, online news subscriptions—if you’re not using them regularly, you’re tossing your hard-earned money away. Review your subscriptions every few months and cancel anything you don’t truly need. If you come across some subscriptions you use less often than others, see if you can pause or temporarily cancel the subscription until you’re ready to use it again.

For example, if you have one streaming service because it contains one show you like, cancel that subscription after you’ve watched that show, then sign up again when the next season is released. It’s also not uncommon for subscriptions to offer you a discount to come back upon cancelation.

2. Daily Coffee Runs

That $7 latte may seem harmless, but five days a week adds up to over $1,800 a year. Making your coffee at home is the way to go when it comes to trying to save money, but if you’re set on getting coffee at your favorite local café, opt for black coffee or coffee with cream and sugar. Many times, ordering a regular coffee instead of a latte can lower your cost by a couple bucks, reducing some of that unnecessary spending.

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3. Impulse Purchases

Buying something just because it’s on sale or because you’re bored and decide to go to the store? These unplanned expenses add up quickly. Making a shopping list helps you stick to only the items you truly need. It can also be helpful to create a 72-hour rule: wait just three days before buying anything non-essential to ensure you really want to spend the money for that item.

4. Name-Brand Products

Generic brands often offer the same quality as name-brand items for a fraction of the cost—especially with groceries, cleaning supplies, and over-the-counter medications. When it comes to clothing, thrifting can be a fun way to find great deals on name-brand garments. For the fancier occasions where you may only wear something once, look into clothing rental services that can not only save you money, but closet space as well.

5. Frequent Takeout or Food Delivery

Ordering food is convenient but comes with delivery fees, tips, and higher menu prices. Meal planning and cooking at home can significantly reduce your monthly food expenses. While cooking at home can be time consuming, there are ways to make it fun. Challenge yourself to recreate your favorite restaurant meals or include the family to double down with quality time with your loved ones.

6. Extended Warranties

Retailers often push warranties on electronics or appliances, but many items already come with a manufacturer warranty. Not only can these extended plans not offer the value they promise, but they can be a waste of money. Do your research before making your purchase to see what kind of warranties are already in place.

7. Overpriced Cell Phone Plans

Many people overpay for data or features they don’t use. Review your plan annually and consider switching to a more budget-friendly provider or trimming your package. It can also be beneficial to look into and compare prices of different service providers. These days, there are numerous providers that provide a wide range of coverage, giving you multiple options to choose from.

8. ATM and Banking Fees

Out-of-network ATM fees, overdraft charges, and account maintenance fees are avoidable. Choose a bank with no-fee options, like by being a part of the Allpoint ATM network, or be strategic about how and where you access your money.

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9. Trendy Gadgets and Tech Upgrades

New doesn’t always mean necessary. If your phone or device still works well, don’t feel pressured to upgrade the moment something new hits the market. Many times, cellular salespeople will reach out to increase the urgency of upgrading your phones and tablets. Avoid the pressure by stating you appreciate the offer but are happy with your current device. Remember the saying, “If it’s not broken, don’t fix it”.

10. Buying New When Used Will Do

From cars to books to furniture, gently used items can cost a lot less and function just as well as brand-new ones. With technology at our fingertips, social media sites have many options like “swap & sell” pages and online yard sales that can be combed through to find the items we’re looking to purchase. Consider these secondhand options before splurging and paying full price.

Cutting back doesn’t mean cutting out all fun—it means making smarter choices so you can focus your money where it matters most. Take a closer look at your monthly spending habits, and you may find hundreds—or even thousands—of dollars in savings potential.

Need help building a budget that works for your lifestyle? Check out these tips for better budgeting.

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