Stop Wasting Money! 15 Sneaky Fees You Can Ditch Today
Every year, Americans spend $12.4 billion on overdraft bank fees alone. ATMs (automated teller machines), credit cards, over-the-limit, and late fees steal even more money, well into the billions, from the wallets of hardworking citizens.
Saving for an emergency or retirement becomes even more difficult when you’re bleeding money out for unnecessary fees every month. They seem small on their own, but these fees can rack up into the thousands, hijacking the wealth potential of many Americans.
Learning to avoid and reduce the most common fees can put hundreds of dollars back in your bank account, allowing you to build that emergency fund or add to your retirement savings. We’ve picked out some of the trickiest fees you may not even know you’re paying.
1. Convenience Store Trips
We all love a summer stop for gas and a cold drink, but the markup at convenience stores for anything else is so high you might as well be throwing your money down the drain. Most stores will jack up soda prices, especially in the summer when their customer base dramatically increases. Packaged beverages alone increased by 18% from June to August, and overall, most convenience stores increase sales by 4.5%.
Stocking up on bottled water, soda, beer, and snacks before you take that summer trip or weekend getaway can significantly decrease the money you spend at convenience stores. It also helps you have exactly what you want on hand, as convenience stores may run out of the most popular soda or snack offerings.
2. Unused Subscriptions
While monthly spending on paid subscriptions has dropped since 2023, most Americans still pay $40.39. However, 85.7% of those subscriptions aren’t being used, costing Americans $32.84 monthly, an increase from $25.34 in 2023.
If you can trim your unused subscription spending and save that $32 every month, you’ll save $384 in one year. You can then turn around and add that to an emergency fund or a Roth IRA (Individual Retirement Account) to grow your investments.
3. Unused Gym Memberships
Sixty-seven percent of Americans have a gym membership they don’t use. The average cost is around $58 a month, and January is the peak month for membership activation or renewal.
If you’re in that 67%, consider canceling your gym membership and using the $696 to boost your high-yield savings account.
4. Overdraft Fees
Banks charge overdraft fees when customers use a debit card to pay for an item they can’t afford with the money in their bank account.
In a given year, the average person pays $250 in overdraft fees without knowing how much they’re losing, as the Truth in Lending Act hasn’t historically covered these types of fees.
5. Bank Maintenance Fees
Switching banks is a normal part of building financial freedom. Sometimes, you move your money because a particular bank offers a better rate on their money-market accounts or you like their CD (certificate of deposit) rates.
Whatever the reason, maintenance fees can haunt you if you forget to close your old bank accounts. Banks often have multiple choices of checking or savings accounts, and most require a minimum balance to avoid a monthly maintenance fee. The CFPB (Consumer Financial Protection Bureau) estimates that the aveerage American spends over $1000 each decade on banking fees.
6. Mobile Phone Fees
My husband left my last cellphone in the rain, and leaving it to drip out in a bowl of rice didn’t fix it. E-waste accounts for 400 iPhones’ worth of material and money for Americans annually. If we’re throwing out that much in resources, paying for useless fees is likely flying under the radar, too.
As a whole, Americans spend $423 billion on mobile phone fees. That works out to $139 a month per person. Large networks like Verizon, AT&T, and T-Mobile have increased their phone fees by 36% since 2013, and 36% of Americans say they couldn’t afford a 10% increase in their monthly bill. If your phone bill is causing you financial stress, try switching to an MVNO (Mobile Virtual Network Operator). Essentially, it’s a small mobile service that uses the same nationwide network without all the monthly fees. Think Mint Mobile, Metro by T-Mobile, or Boost.
7. Travel Fees
Travel arrangements might feel like a big headache when you’re preparing for that much-awaited vacation. Hotels, theaters, restaurants, airports, salons, and other service-related industries may charge a booking fee to set up your arrangements.
As of 2022, Americans spent $1.2 trillion on all travel arrangements nationwide. Airfare alone was up 14.1% in 2022 to $378 for a round-trip flight. If you plan on traveling in 2024, watch out for checked baggage, resort, and automatic gratuity fees.
8. Parking Fees
Whether you’re leaving your car at the airport for a business trip, visiting family in the hospital, or attending a swanky event, you’ll probably need a parking spot. Yet parking alone costs Americans $73 billion a year. If you’re flying, ask a friend or family member to drop you off and pick you up.
If you’re visiting, park a little further away and get a good walk in. If you’re showing up for a good time, you can call a cab to take you to a vehicle you left parked further from the event if you want to avoid walking or paying the hefty fare to ride home.
9. Paper Statements
Not all company policies are created equal. When paper statements started to go digital, many companies included a policy change in their terms of service agreements that began charging for sending out paper statements.
Switching to digital statements and learning how to navigate both online statements and bill pay can save you this accumulating fee.
10. Credit Monitoring Services
It’s a great idea to build healthy credit habits. Monitoring your credit score is part of that principle. However, paying for services you can get for free doesn’t make sense.
If you aren’t into working with credit monitoring companies or software to track your credit monthly, you can receive one free credit report once every 12 months from each of the three reporting agencies.
11. Shipping and Handling
The pandemic brought a wave of online purchases. Shipping and handling costs also increased for companies that couldn’t swing the “free shipping” offer.
Remember this: paying for shipping and handling is just like giving away your money. Yes, you get what you ordered, but in our digital era, there are ways to get what you need without paying someone to ship it to you. FedEx, DHL, and even the United States Postal Service all have base ground shipping fees. These add-on fees increase for flight delivery, overnight, and express packaging.
12. Cramming
Cramming is the practice of companies “cramming” your bill with unauthorized service charges. Mobile phone companies, electric power providers, and other major retailers have a bad habit of stuffing their bills with surcharges and other increases that leave millions paying fees they didn’t legally incur.
To avoid paying for these fees, pay regular attention to your service bills (especially your cellphone and electric bills), block third-party charges, and always pay with a credit card, as it’s easy to dispute the charges and ask for a refund of charges you don’t recognize.
13. Garbage
In some rural communities, garbage pickup can be extremely costly. The further a company has to travel to pick up your trash, the more they’re going to charge. Look for places to dispose of your garbage for free, or schedule a trip to your local garbage dump on your days off.
Paying for a couple of gallons of gas is much cheaper than overpaying a company for minimal services. The convenience factor isn’t worth the $25 to $100 Americans spend monthly for something you can do much cheaper.
14. Credit Card Fees
Americans blow $120 billion annually on credit card fees. Over-the-limit, late payment, cash advances, ATM (automated teller machine), and membership fees drain many Americans’ wealth potential.
If you don’t use credit cards wisely or struggle to make even your minimum payments, it’s best to forego credit cards altogether. Credit card use requires knowing which cards offer the best rates and benefits, how to use them to your advantage, and the ability to use them only in necessary circumstances when you can pay off the balance each month.
15. Fiduciary Fees
Hiring a financial advisor can become extremely expensive very quickly. If you don’t make at least a higher middle-class income, it’s probably not in your financial ballpark to hire an advisor on a retainer. Considering the average financial advisor is charging between $6,000 and $11,000 annually
You can find programs offering free or low-cost financial education, and apps for iOS and Android offer financial management help for a low-cost membership fee.
15 Things Broke People Seem to Continue to Buy Without Having Money
We’ve all been there – the end of the month rolls around, and our bank account looks a little worse for wear, yet we can’t resist that next purchase. It’s a common dilemma – we know we’re short on cash, but there are certain things we just can’t seem to stop buying.
15 Things Broke People Seem to Continue to Buy Without Having Money
18 “Penny-Pinching” Habits That Waste Your Time (and Sanity)
We all strive to save money, but not all frugal habits are created equal – some can cost you more in the long run, either in time, stress, or money. So before you start reusing that tin foil or driving across town for cheaper gas, let’s take a moment to reconsider. We’ve rounded up 18 frugal habits that, believe it or not, might not be worth your effort at all.
18 “Penny-Pinching” Habits That Waste Your Time (and Sanity)
10 Frugal Living Hacks That Can Help Save Thousands With a Few Lifestyle Changes
“A penny saved is a penny earned!” You may not realize it, but the little things we do daily can add substantial savings over time. It can be easy to focus on the big areas of life that we want to change, but frugal living is all about consistent, small changes over time. Here are ten things you can start doing today to create big savings in the future. Here are ten frugal life hacks that members of an online forum swear to save them money.
10 Frugal Living Hacks That Can Help Save Thousands With a Few Lifestyle Changes
