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If you’re looking for new ways to save, you might not notice the money leaks costing you every month. Maybe you’re paying for unused gym memberships, streaming subscriptions, or that landline that never rings — but now’s the time to stop.
You’re probably so used to these costs that you don’t clock them eating into your monthly budget. However, you could save hundreds of dollars a year by plugging these money leaks right now.
We’ve uncovered and are sharing the most common money leaks you can easily plug for instant savings.
1. Unused Memberships and Subscriptions
Hands up if you have a streaming subscription you never use or a membership to a gym you haven’t visited in years. That’s a sea of hands across the nation. Almost everybody has a subscription or membership they don’t use.
Check your monthly direct debits or recurring payments to see what you don’t need. You could save over $50 a month by simply canceling a gym membership and a Netflix or Hulu subscription. You may find you can rotate streaming services according to what series you’re binging that month.
2. High-Interest Debt
If you have any high-interest debt, you’re losing money every month. Interest racks up, and your debt grows, meaning you can hand over the minimum monthly payments and barely chip away at the debt.
Prioritize paying off high-interest debt first. Use any savings you have to pay off your debt. It might seem scary to have little or no savings left. However, being debt-free without savings won’t cost you anything. Having savings and high-interest debt will.
3. Banking Fees
Simply using your bank account can come with fees. Some bank accounts have monthly maintenance fees. Others charge you for making wire transfers, stopping payments, or even using an ATM. Each fee might be small, but they soon add up.
A Bankrate survey shows that 27% of Americans pay monthly banking fees. And, on average, these fees cost $24 a month. However, you can avoid most of these fees. For starters, switch to a fee-free checking account. Look for accounts that offer reimbursement for out-of-network ATM usage. Avoid going into your overdraft, as this is often costly.
4. Overpriced Cell Phone Plans
AT&T, T-Mobile, and Verizon are the main cell phone service providers in the U.S. However, you might save by switching to a smaller provider, like Mint Mobile or Google Fi.
Other money-saving options include choosing family plans or looking for discounts, such as military or senior discounts—factor in perks that come with some cell plans, such as free Spotify or Apple TV subscriptions.
5. Unnecessary Services
Are you paying for unnecessary services like yard work, simple car maintenance tasks, or manicures? If you could do these yourself, it’s an easy way to save money.
But, even if you don’t want to go fully DIY, you should shop around to see if you can get a better price on your must-have services.
6. Landline Phone Costs
It used to be that when you said “phone,” you meant a landline telephone. But today, the word phone is synonymous with cell phones. So, why are you still paying for a landline?
Most broadband no longer needs a landline to work. Instead, use your cell phone for all your calls and save hundreds of dollars a year in line rental and call packages.
7. Credit Card Late Fees
Paying late fees for credit cards costs you money and is avoidable. Are you getting late fees simply because you forget to pay on time? Set up automatic payments or put a reminder in your calendar each month.
Alternatively, if you’re struggling to pay, talk to your credit card provider. Many will waive fees or give you a temporary payment break to help you improve your finances.
8. Food Waste
Food waste statistics vary, but it’s believed that American households throw out about $1,866 of food every year. Keeping control of food waste could plug a serious money leak you might have overlooked.
Avoid doing large weekly or monthly shops for all your groceries. Instead, do a big shop for non-perishables, but pick up fresh produce a few times a week. This helps avoid buying too much and wasting it. Also, consider freezing any leftovers you’re unlikely to eat within 3 to 5 days.
9. High Insurance Rates
You’re probably overpaying for at least one of these insurance coverages: car, health, home, and life insurance. It’s common to take out an insurance premium and just let it roll, never looking for better deals.
So, use comparison sites to see if you could pay less for insurance. Often, you can save money by buying more than one type of insurance from the same provider and receiving a package deal.
10. Low-Interest or No-Interest Bank Accounts
Interest rates have risen recently, but many bank accounts are lagging — especially for existing customers. You might find you’re getting less than 1% interest. Or no interest at all. If so, you’re losing money you could earn for free.
You can find checking and savings accounts offering interest rates over 5%. Switching accounts to a higher interest option will stop you from missing out.
11. High-Interest Mortgages
While you want high interest on your savings, the opposite is true for mortgages. The higher the interest on your mortgage, the larger your monthly repayments — and the more you ultimately pay for your home.
Mortgage interest rates have shot up recently, but it now seems like they’ve peaked and are slowly decreasing. As such, you should start to find some lower-interest mortgage deals than you might have found in the last year or two.
12. Impulse Buying
Impulse buying can be a serious money leak. Often, these impulse buys are small—$5 on coffee here and $2 on candy there—but they all add up. Spending $10 a week on unintended impulse buys is $520 yearly.
One way to combat this is to write yourself shopping lists and stick to them. Next time you reach for something you didn’t intend to buy, ask yourself if you really need it.
13. Excessive Energy Bills
You’re stuck with your energy supplier in some areas, so whatever rates they offer are your only option. However, in some states, there’s a thing called retail choice. In short, this means you have a choice over who supplies your utilities. Some providers will have cheaper rates, so you may be able to switch suppliers and save money.
If this isn’t possible, you could still avoid excessive energy bills by being frugal with your energy use. Switch to energy-efficient appliances and LED light bulbs. Avoid leaving your heating or air conditioning on unnecessarily.
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Do you want a new perspective on saving money? If you think this is another article telling you to skip your morning coffee or give up dining out, then let us tell you—it’s not! This blog post discusses 18 innovative and painless ways to save cash without sacrificing what makes you happy. We believe that a good life isn’t about cutting back on everything you love but about making smarter decisions with what you have. So, if you’re ready to start saving without compromising your lifestyle or happiness, dive right in!
