5 Things You’re Probably Spending Too Much Money On (Without Even Realizing It)

Last updated on June 21st, 2024 at 09:13 am

According to a recent study, Americans spend a whopping $18,000 yearly on non-essential items. Granted, spending money on things like date nights and vacations can be very worthwhile, but sometimes impulse buying and poor financial habits can strain your budget. 

This is why it’s important to know exactly where you’re spending your money so you can make better financial decisions. For most people, there are at least a few expenses that have the potential to get out of control before you even realize it.

In this article, we’ll take a look at five things you could be spending too much money on. 

1. Groceries

While spending money on groceries is a necessity, many Americans don’t even think about creating a grocery budget. As a result, they’re spending too much on foods they either can’t afford or that may wind up going to waste. Many people aren’t even sure just how much of their money goes toward groceries.

So, to help you get a handle on your food spending, here are some tips:

Before your next grocery shopping trip, make a list complete with corresponding prices. You can check the website of your favorite grocery store to find up-to-date pricing. This way, you know how much the items on your list will cost.

Speaking of lists, a list is essential. It will keep you from wandering the store aisles picking up things you really don’t need.

It’s also smart to use online coupons and rebate apps. These apps allow you to scan and submit receipts for cash back and use digital coupons. It’s a simple way to reduce your spending!

2. Unused Subscriptions and Memberships

While many of us have “cut the cord” on cable in favor of subscription services, these can add up quickly too. With the huge number of options available, from Netflix to Hulu to Disney+, you might have several subscriptions. 

It’s all too easy to lose track of the subscriptions you’re paying for, and you could be wasting money every month on ones you don’t even use. This is especially true if your subscriptions are set to autopay, which most of them require. 

Take a look at all of the subscription services you’re paying for each month. If you no longer use a service, deactivate your account or pause your membership. 

3. Insurance

Car, life, and home insurance are necessities, but other types of insurance may be completely optional, or downright unnecessary. For example, you may not need identity theft insurance if your credit card also has fraud protections. 

Another way to save–if you have multiple types of insurance with the same provider, you can probably receive a discounted rate. 

And, don’t forget to shop around periodically to compare insurance rates. It may be worth switching providers.

From time to time, you’ll also want to review your deductibles and check for any discounts you might be eligible for–like good student discounts for your teens or discounts for a certain number of accident-free years.

4. Credit Card Interest

The average American household owes $7,951 in credit card debt. One of the fastest ways to rack up potentially overwhelming debt is by making only the minimum payments on your credit cards.

To avoid credit card debt, spend only what you can afford each month. Then, pay your balance off completely before the due date to avoid being charged interest. 

You can even use rewards credit cards to earn money back on all of your purchases. Again, just make sure you don’t carry a balance. 

5. Gasoline

With unpredictable gas prices, many of us are looking for ways to save money at the pump too. Here are some ideas:

• Drive less by making use of public transportation when possible, or by walking or biking.
• Carpool to work or to children’s sports and activities
• Group errands together to avoid having to make multiple trips
• When it’s time for a new or used car, keep fuel efficiency in mind

Endnote

Ultimately, we all have different expenses and will have our own unique ways to cut back. However, everyone can benefit from eliminating unnecessary purchases.

Whether you’re trying to set aside money for a rainy day or just want to reduce some financial stress, these tips can help you get started. Take a moment to think about your spending habits and see where you might be able to make some money-saving changes.

Also read:
75 Ways To Lower Your Monthly Expenses Starting Today
How to Save for a Rainy Day: Try These 5 Smart Saving Strategies
Free Printable Debt Payoff Worksheet (Debt Snowball Method)

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