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Did you know you’re likely wasting your money without even realizing it? With the higher cost of living and rising food prices, you’ll want to stretch your paycheck as far as possible. Surprisingly, some people discover ridiculous ways to cut costs that actually work. Saving your money—even through these unconventional methods—is a smart way to stay ahead.
With prices increasing everywhere, how do we know if we’re overspending or wasting money? Do I have to give up the things I like to save a buck or two? First, let’s identify ways you’re likely throwing money down the drain on things you want but don’t necessarily need. That seems like the best place to start.
Check out this list of ways you’re likely wasting money on things that could save you a bundle if eliminated or you chose less expensive options.
Impulse Buying
Impulse buying is one of the top ways you’re wasting money, and it’s not like you’re doing it on purpose, hence the name. In 2023, the average person spent over $300 monthly on impulse buys. So, how do you prevent this? Making a strict budget is a good idea, and avoiding shopping when you’re hungry or emotional.
Subscription Services
When was the last time you actually took a look at what you’re subscribed to? Most of us are guilty of subscribing to apps or streaming platforms we rarely use. One good way to see which app you hardly use is by looking at your app usage on your smartphone. Apps that you haven’t used in a month or barely use can be canceled.
Brand Loyalty
Sure, branded products are a great way to show off that you have money, but if you’re not careful, these brands can leave you without any money. Also, just because something is branded doesn’t mean the quality is better. Of course, we’re not saying you need to cut off your favorite brands completely but rather choose non-brands when you can save some bucks.
Buying Bottled Water
It’s easy to grab a bottle of water while you’re out shopping, but this adds up after a while, and it’s not so eco-friendly. Our suggestion? Switch to a reusable water bottle, which is also popular now, with brands coming out with fashionable and durable options.
Keeping up With Fashion Trends
It’s no secret that the fashion world is constantly evolving, and like Heidi Klum once said on Project Runway, “One day you’re in. The next you’re out.” Keeping up with fashion trends is an expensive hobby. To save money, try some basic wardrobe staples and then add some latest fashion pieces to those staples.
Gambling Your Money Away
According to Quit Gamble, recreational gamblers lose an average of $500 per year, and Forbes revealed that in 2023, Americans gambled a record high of $66.5 billion. Buying a weekly lottery ticket can quickly add up before you know it, so if you want to save money, limit how many tickets you purchase.
Expensive Car Payments
Is your monthly car payment eating into your paycheck more than you’d like? Personal finance expert Dave Ramsey has some advice for you. “I guarantee you’ll be broke your whole life as long as you stay in car payments because it’s the most expensive thing you buy that goes down in value.” The average car payment in America now is $499.” He adds, “If you take $500 a month and invest it from age 30 to age 70, you’re going to have $5 million, and you scratch your head and wonder why you’re freaking broke.” Instead of buying a new one, choose a second-hand car.
Expensive Cell Phones
The same advice goes for cell phones. If you cannot afford the latest iPhone model and need to take out an expensive contract, you shouldn’t be buying the phone in the first place. Shop for a phone in your actual price range and ask yourself if you’re really going to use all the extra accessories marketed with expensive phones.
Rent to Own
Rent-to-own has become very popular recently as it is a more affordable way to purchase things. But it’s not actually that good of an idea. Why? Monthly rental is often much more expensive, with high interest rates. The problem with these types of deals is that if you default on one payment, you risk losing the product despite what you’ve already paid. Just avoid it.
Shipping
Let’s face it: shopping online is much more convenient than getting up and physically going to the store. But the shipping costs can really start digging into your back pocket without you even realizing it. You shouldn’t waste your money on shipping items that you get from your local store.
Smoking Cigarettes
Cigarettes burn a hole through your money, and they’re a nasty habit to kick. According to CNN, Americans spend around $80 billion a year just on cigarettes. That works out to around $70 a week or $280 a month for a habit damaging your health. If those statistics haven’t convinced you, the Centers for Disease Control and Prevention revealed that smoking cigarettes kills more than 480,000 Americans per year.
Dining Out
One of the biggest ways you’re wasting your money on dumb things is eating out too often. We’re not saying you can’t ever eat out because sometimes when you get home late from a long day at work, the last thing you want to do is think about cooking. Instead, limit how many times per week or month you eat out.
Crypto
While cryptocurrency has gained a lot of traction in the markets, it comes with many risks and extreme fluctuations in value that make investing in this a dumb way. You’re wasting money. Also, a lot of people often lose money because they’re investing in something that they don’t understand.
ATM Fees
ATM fees may not seem like a lot, but if you’re constantly withdrawing, these fees add up over time. You can reduce how much you spend on ATM fees by using ATMs from your bank provider, or you can sign up at a bank that offers ATM reimbursement benefits.
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The primary purpose of a budget is to track your income and expenses. A budget also ensures your bills are paid on time, helps you plan for the future, helps identify any bad spending habits or areas where you could reduce your spending, and ensures that your spending reflects your priorities. By creating a budget and sticking to it, you can ensure your needs are met, your bills are paid on time, you get out of debt, and you meet your financial goals.
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