Money wasters are those expenses that are fairly small but over time they can add up to a significant number. They hide in the shadows of our expenses, hoping that we don’t notice them. Because they are not large amounts, we tend to discount them, allowing them to slowly affect our financial health.
When you review your spending, check if there are any money wasters on your list.
Here are a few money wasters to look out for.
1. Bank Fees
There are so many banks that offer no-fee banking, so why pay fees? Contact your bank and ask what their requirements are for no-fee banking. If they do not have an option for you, then shop around. If you are paying $5 per month in fees, that is $60 per year. That may not sound like much, but it adds up.
Also, check the transaction fees you are charged for investments.
2. Late Fees
Late fees can be avoided when you pay on time. Set up your bills to be paid automatically to avoid late fees. For your credit card, you can set two auto payments per month. One with the min balance paid on time and one with an additional principal payment. This way, you are sure to avoid the late fee.
3. Unnecessary Insurance
Review all of your insurance policies once per year to determine if adjustments are required. Insurance is necessary but it needs to be accurate. Are you overinsured? Doing this work can save you hundreds of dollars per year.
4. Subscriptions
Take a look at all of your subscriptions and opt out of those you don’t use. Can you get the information from another source? Subscriptions generally are small amounts, but again these can add up.
5. Interest
If you have credit card debt, you are likely paying interest. This could be a large chunk of money. Work toward paying down your debt and adopt a debt-free mindset so you can build the habit of paying your cards off in full each month.
6 Food Waste
There is no doubt that food prices have soared in recent times. Take stock of how much food you are tossing out and convert that to dollars. You might be shocked. Buying only the food you need, meal prepping and proper food storage can help combat this.
Final Words about money wasters
Deep dive into all of your expenses over the last year and pull out all of those small recurring expenses that you just pay without thought.
These little things add up. Try not to waive them off with the “It’s only $10 per month” reasoning. If it’s $10 per month and it brings great value to you, then it’s okay. However, if it’s $10 per month and you really don’t use it, or you actually even forgot you were paying it, then it’s just a vampire sucking money out of your bank account.