Lisa O
If you’re like a lot of people, you might be feeling the pinch more each month. With inflation on the rise, tracking where your money is going is more important than ever. While some costs are beyond your control—like rising prices, you can still keep a closer eye on your spending and make some changes. Here are ten sneaky things that might be quietly draining your bank account.
Subscription Services
Monthly subscriptions have become as common as morning coffee. Streaming services, digital magazines, and even meal kits often sneakily munch away at your budget. According to a 2023 report, the average American spends around $273 monthly on these services. That’s more than $3,000 a year! It’s easy to sign up for a free trial and forget about it. Make it a habit to review your subscriptions regularly and cancel any that you rarely use.
Unnecessary Fees
Bank fees and ATM charges might look tiny, but they can really stack up. In 2023, Americans shelled out nearly $33 billion just in overdraft fees! These charges often come from overdrafts, using out-of-network ATMs, or monthly account maintenance fees. Take a good look at your bank statements—you might be paying for things you didn’t even realize. Switching to a bank that doesn’t hit you with these fees can save you a lot of money.
Unused Memberships
How many memberships are you paying for that you rarely use? Gym memberships, club dues, or even those fancy online communities can quietly drain your wallet. If you’ve got a gym membership but haven’t stepped inside in months, you’re essentially throwing money away. Consider whether you’re really using these services or if you’d be better off with a more flexible, pay-as-you-go option.
Impulse Purchases
Those little impulse buys might not seem like much, but they can add up fast. Studies show that the average person spends about $5,400 yearly on impulse purchases. This could be anything from grabbing a coffee on your way to work to picking up a gadget you didn’t plan for. To fight this—try sticking to a shopping list and giving yourself a 24-hour cooling-off period before purchasing any non-essential item.
Energy Wastage
Your energy bill can sneakily drain your wallet if you’re not paying attention. Leaving lights on, using old appliances, or cranking up the heater can hike up your costs. The U.S. Department of Energy says upgrading to energy-efficient appliances can save you up to $500 a year. Even small tweaks, like swapping to LED light bulbs and unplugging devices when you’re not using them, can make a big difference.
Late Fees
Missing a payment deadline can really cost you. The average credit card late fee is about $30, and that’s not counting any interest rate hikes that might come your way. The Consumer Financial Protection Bureau warns that late fees can pile up fast and hurt your credit score. To dodge these fees, set up automatic payments or use calendar reminders to keep track of due dates.
Dining Out
Eating out is a nice treat, but it adds up way quicker than you might realize. On average, Americans spend over $3,000 a year dining out. It’s convenient—but that convenience costs a pretty penny. Cooking at home can save you a lot of cash. Plan your meals, get things ready in advance, and pack lunches for work or school to cut down on the urge to grab food on the go.
Extended Warranties
Retailers love to sell extended warranties on electronics and appliances, but many of these warranties end up sitting unused. Research shows that many people never actually use these extra protections and could save money by skipping them. Think about whether the warranty is really worth it or if the manufacturer’s standard warranty will do the job just fine.
Bank Interest Charges
Carrying a balance on your credit cards can rack up some serious interest charges. You could end up paying a lot in interest if you don’t clear your balance each month. To dodge this—pay off your credit card balance in full every month. If that’s not doable, consider finding cards with lower interest rates or transferring your balance to one with a 0% APR offer.
Convenience Fees
Opting for quick payment methods often means paying extra fees. For example, some services charge fees for processing payments over the phone or using certain online platforms. These fees might seem minor on their own—but they can accumulate over time. Look for free payment options or services that don’t tack on extra charges to save money.