19 Ways You’re Unknowingly Bleeding Money Each Month
Are you the type of person who doesn’t count the small, everyday expenses? Well, you’re not alone. I was also guilty of this until I found out how these expenses add up significantly over time.
When I decided to look into my credit card transactions, I saw how many rarely-used subscriptions I paid each month. These “little costs” can drain your money without you noticing it.
To help you avoid this situation, here are some ways you’re unknowingly bleeding money each month.
1. Unused Gym Memberships and Subscriptions
Unused gym memberships and subscriptions are a waste of money. If you go to the gym just once or twice, the cost is not worth it. The average gym membership costs $50 a month, which is $600 annually.
If you put this on autopay, you might not notice the monthly charges piling up on your bill. If you put this money into savings or investments instead, you can earn interest and build wealth. This is why it’s important to cancel these subscriptions if you don’t use them and put your money to good use.
2. High Credit Card Interest
Credit cards are very convenient — I know this because I’ve used them a lot. However, you should know that credit cards have high interest rates (currently at 21.51%). This can quickly spiral into debt that is difficult to pay off completely.
If you can help it, don’t rack up credit card debt in the first place, but sometimes you have no choice. Like me, you might feel stuck when you get into more and more debt. However, if you find lower-rate options, like consolidating your debt as a personal loan, you can pay off the money you owe faster.
3. No Automatic Savings
Not automating savings costs you money. I say this because of my own experience; before, my entire paycheck went to my checking account.
I used to spend most of my salary, leaving only a few dollars in my account for a few years. Once I realized what was happening, I opened a new account and made an automatic deposit to save and invest my earnings before I could spend it.
4. Expensive Coffee
It doesn’t seem like much when you spend $3 at a coffee shop. However, if you buy a cup daily, it adds up to over $1,000 a year. And, let’s be real, more often than not, we spend north of $7. That means that the total money spent on coffee in a year can get to more than $2,500.
No, skipping the coffee will not mean you’ll magically have enough money to buy a home. But brewing your own coffee is a smart way to save money. Experiment a little with recipes, and I assure you that you can make a Starbucks-quality coffee at home for a fraction of the price.
5. Wasting Food
Food waste is equivalent to money flushed down the toilet. The average family wastes $1,500 worth of food every year. That’s a lot of money if we consider the number of families per state.
As much as possible, utilize leftovers when preparing meals. This helps you save money and minimizes food waste. Keep track of all the ingredients you have in your fridge, so you can use them all before they go bad.
6. Unplugging Appliances
Appliances still use power when plugged into an outlet. Standby power can mean you still use 10% of your home’s total energy usage, even when all the appliances are turned off. With that, slash your electricity bill by unplugging things you don’t use frequently.
Make sure to monitor your energy use and unplug when not needed. I use a powerstrip for points in our house where we have a lot of power usage, and turn those off before we go to sleep at night. This effortless habit will save you money over time.
7. Ordering Dessert
Desserts are tempting after each meal — especially cheesecake is my weak spot. I love its creamy texture that melts in my mouth, along with its subtle sweetness, hints of vanilla, and the buttery graham cracker crust.
However, if you’re tight on money or want to save, don’t be like my past self. If you’re too full after a meal, forcing yourself to eat dessert is a waste of money. You can do this from time to time, not after every meal.
8. Heating or Cooling When Away
Leaving your heat or air conditioning running when you are away from home wastes money. Adjust your thermostat while away to save 10% more each year in bills.
Especially if you live in an area where it can get really cold or warm during specific times of the year, this can save you a lot of money. Pay attention to your heating and cooling settings to save a lot on your utilities. Sometimes, small changes can make all the difference.
9. Missing Cash Back on Credit Cards
If you use a typical credit card, you risk losing cashback and other rewards. With a rewards credit card, you can save money on things you already spend.
This way, you get money back when you spend, turning daily expenses into savings. However, note that it can tempt you to overspend, so use your card responsibly.
10. Overpriced Alcohol
You’ll spend a fortune if you buy drinks from restaurants as they have high markups. For example, some wines are 400% more expensive than in stores.
Why not drink alcohol at home and save money? You’ll get to enjoy quality drinks and you pay for an entire bottle what you’d normally pay for a glass. I personally enjoy the relaxed atmosphere of having a drink at home just as much.
11. Eating Out Often
When you eat out often, the amount can add up quickly. An average American typically spends over $2,500 a year eating out. This is a decent amount of money that could have gone to your savings or investments instead.
You might want to consider cooking your own meals. Doing so saves you a lot of money and lets you choose your menu, which if often a big healthier as well.
12. Brand-Name Items
Don’t be swayed by celebrity endorsements of brand-name items. I have a lot of friends who want to same couch as that specific celebrity, which often costs tens of thousands of dollars. But if you really want to buy them, make sure you can afford to pay in cash and don’t put it on your credit card.
If you want to keep up with the Joneses, make sure you have the money to do so. There are generic items that are just as good as brand-name items but cost significantly less.
13. Drafty Homes
When you use a home heater or an air cooler, there’s a chance that air will escape from your windows or doors, which raises your energy bills. You must seal these leaks to reduce your energy usage.
You can caulk leaks to keep your home comfortable and save 10 to 20% a year on heating and cooling bills. On top of that, weatherstrip your windows for another 5 to 10% annual savings. These small fixes can help you save big time on your utility bills.
14. Paying Full Price
I don’t know if it’s just me, but I always find ways to not pay full price. I try to look for discounted items, coupons, and special offers before making a purchase.
This way, you can save money, like me. This habit has helped me keep more money in my pocket for better things later on.
15. Missing Your 401k Match
If your employer offers matching contributions to your 401k, you should never miss it. This is an extra boost for your retirement account, so you should take advantage of it.
This money can help increase your retirement savings, so make sure you contribute enough. If not, you’re basically missing out on free money.
16. Bottled Water
I know buying bottled water is convenient. I used to do this a lot, too. However, if you are trying to save money, this is not the way to go.
Did you know that the average American can save around $1,350 yearly by using a reusable water bottle? That’s a good amount of money to save, and besides that, you are also helping the environment by reducing plastic waste.
17. Delivery Fees
Having everything delivered to your doorstep is very convenient. However, this is not always for free and this adds to your overall expenses.
Remember, even a small amount can add up quickly over time. That said, do your pocket a favor and consider picking up your items. You can do this along with your other chores, like grocery shopping, so you can save on gas.
18. Prepped or Pre-Cut Foods
If you want to save money, avoid buying pre-cut foods. Though they are convenient, they can also be more expensive and more likely to be contaminated with bacteria.
So, buy the uncut versions of vegetables and cut them up yourself to save money. This way, you can enjoy fresh and healthy foods without paying extra. This is a great way to stretch your budget.
19. Shopping Without a List
I don’t buy grocery items without a list. Every time I go to the grocery store without one before, I end up going way beyond my budget. If I’m hungry, it gets even worse.
That’s why you should make a list and stick to it. This way, you save time and money by avoiding impulse purchases.
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You can try to keep them up for as long as possible, which can become hard after a while. You experience a slip and you decide to throw in the towel. That’s okay, nobody is or should be perfect. However, there are ways to improve in areas that will stick. Sometimes you need to take it easy and start with the small steps.
So I did when I had my no-spend November.
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