If you’re here because the title caught your attention, I’m assuming you’re interested in saving money and not because you’re trying to maintain your current standard of living or upgrade your lifestyle.
I know we all live differently, and what I think is a waste of money might be an important expense for you.
I get that. But, I think there are some things everyone can do to save money better.
After some research and thinking, I made a list of 12 things that might be costing you more money than you need to spend. I hope this helps you save more money and possibly reconsider your spending priorities.
You don’t have to cut every expense I’ve listed below. Focus on the ones that are consuming the most of your money. Also, watch out for expenses that don’t align with your goals.
If you notice that you’re spending more than you’d like on a specific expense that you don’t want to get rid of entirely, think about cutting back on the amount you pay.
So, without further ado, let’s get into it.
Eating out excessively
Let’s face it, dining out can be convenient and enjoyable, but it can also be a major drain on your finances if you do it often.
Those daily lunches at your favorite café or those frequent dinners out with friends can really add up. Before you know it, you’ve spent a small fortune on restaurant bills.
When you go to a restaurant or order takeout, you’re not just paying for the food; you’re also paying for the service, the convenience, and sometimes even the ambiance.
Think about it: when you cook at home, you buy groceries, and you can make multiple meals out of those ingredients. But when you eat out, you’re paying for each individual dish, and those costs can add up quickly.
Here is a great article that breaks down how much more expensive eating out is compared to cooking at home. According to CNET, you can approximately save up to 50% if you cook the same meal at home rather than eating out or having it delivered to your house.
Coffee Shop Habits
While treating yourself to a coffee shop beverage every now and then is perfectly fine, making it a daily ritual can put a serious dent in your budget.
Those $5 lattes may seem harmless at the moment, but they can quickly accumulate into a significant expense over time.
If you are a coffee snob, invest in a good quality coffee maker and start brewing your favorite coffee at home. Not only will you save money, but you’ll also have the convenience of enjoying your caffeine fix in the comfort of your own home.
Subscription services
From streaming platforms to meal delivery kits, there seems to be a subscription for everything under the sun.
They promise convenience, variety, and sometimes even exclusivity. Who wouldn’t want freshly roasted coffee beans delivered to their doorstep every month or access to every movie and TV show?
And once you sign up for a subscription, it’s easy to forget about them.
Sure, that gym membership seemed like a great idea in January when you were all gung-ho about your New Year’s resolutions, but fast forward to June, and you’re wondering why you’re still paying for something you haven’t used since Valentine’s Day.
Most of the time it starts innocently enough with one or two subscriptions, but before you know it, you’re paying hundreds of dollars every year for services you could probably live without.
According to this article by CNBC, 1/3 of customers underestimate how much they spend on subscriptions by $100 to $199 EACH MONTH!
And 42% have forgotten that they’re still paying for a subscription they no longer use. That’s an insane waste of money if you ask me.
So, what’s the solution?
Start by taking inventory of your subscriptions.
This includes everything from streaming services like Netflix and Spotify to meal delivery kits, gym memberships, magazine subscriptions, and software services.
Once you’ve compiled your list, it’s time to assess each subscription’s value and utility. Ask yourself: Am I getting my money’s worth from this service? How often do I actually use it? Does it align with my current needs and priorities?
Take a good look at your list of subscriptions and identify any that no longer serve you or that you can live without.
Maybe you signed up for a meal delivery service during a particularly hectic time in your life, but now that things have calmed down, you find yourself cooking more often at home. Or perhaps you’re paying for multiple streaming services but rarely watch any of them.
So don’t procrastinate to take those steps— monthly charges will add up even if you don’t actively use a subscription.
Credit Card Interest
Many of us have been there – that moment when we receive our credit card statement, and the interest charges make us do a double-take. But have you ever stopped to think why credit card interests are such a waste of money?
One of the main culprits draining our hard-earned cash is the minimum payment trap.
Credit card companies lure us in with the promise of low monthly payments, making it tempting to only pay the bare minimum.
What they don’t tell you is that the bulk of that payment goes straight into their pockets as interest, leaving your actual debt almost untouched. It’s like trying to fill a leaky bucket – you keep pouring in, but it never seems to be enough.
The longer you carry a balance, the more interest accrues, creating a cycle that’s tough to break. What might have started as a small debt can quickly balloon into a financial burden that feels impossible to escape
As of February 2024, The average credit card interest rate is 27.91%, according to Forbes Advisor’s weekly credit card rates report
So you might want to consider paying off your balance in full each month, to avoid accruing interest charges altogether.
Brand Loyalty
Now, don’t get me wrong. Brand loyalty isn’t inherently evil. There’s something comforting about sticking to what you know, like that trusty old pair of sneakers you’ve had for years.
Think about it this way: brands thrive on your loyalty. They spend millions (yes, millions!) on marketing campaigns, catchy jingles, and flashy ads, all aimed at keeping you coming back for more.
But here’s the thing: just because you’ve been buying from a brand for years doesn’t mean you’re getting the best deal.
Brand loyalty can blind you to better deals and superior products. By sticking to one brand religiously, you might be missing out on savings, quality, and variety.
Become a smart shopper. Keep an open mind, explore your options, and don’t be afraid to try something new. You might just be pleasantly surprised.
Here is a great video on brand loyalty: How Brands Manipulate You To Be Loyal
Branded Goods
First off, let’s talk about what you’re really paying for when you shell buy something from a big brand name.
Spoiler alert: it’s not just the product itself.
Nope, you’re also paying for all that fancy marketing, celebrity endorsements, and sleek packaging. In other words, you’re paying for the name on the label more than the actual substance inside the bottle or box.
(If you are curious about this topic, you can learn more about it over here: How Designer Brands Keep You Poor)
When you buy from a big brand you feel like you are a part of an exclusive club.
And sometimes, they do deliver on their promises of quality and reliability. But you can often find the same quality – or even better – in generic or lesser-known brands.
Brand names can be tempting, sure, but they’re not always worth the hype – or the hefty price tag. In the end, it’s not about the name on the label, but the value it brings to your life.
Fast Fashion
Fast fashion is all about producing trendy clothes quickly and cheaply, often at the expense of ethical labor practices and environmental sustainability.
When you buy a cheap shirt or pair of jeans, you’re essentially investing in something that’s designed to be disposable.
These clothes are made to fall apart after a few washes or go out of style within a season. So, while you might save a few bucks upfront, you’ll end up spending more in the long run as you constantly replace these items.
Instead of chasing after trends, consider investing in timeless pieces that are made to last.
Look for brands that prioritize ethical production methods and use eco-friendly materials.
While these items might come with a higher price tag, they’ll ultimately save you money in the long term and reduce your carbon footprint.
Another option is to embrace the concept of slow fashion. This means being more mindful of your purchases, choosing quality over quantity, and taking good care of clothes you already own.
Excessive Gifts
Excessive gifts, while given with good intentions, often end up being a waste of money for both the giver and the recipient.
We live in a consumer-driven society where the pressure to buy extravagant gifts can feel overwhelming, especially during holidays and special occasions
But do we really need to spend lots of money on gifts to express our love and appreciation for one another?
Excessive gift-giving can also strain relationships. When we feel obligated to reciprocate extravagant gestures, it can create unnecessary stress and financial burdens.
Next time when you are buying a gift for someone consider the practicality and utility of the item. It’s the thought and effort behind the gift that truly counts.
By shifting our focus from excess to intentionality, we can have deeper connections and meaningful relationships with people we love.
Upgrading your phone every year
Phones these days come with a high price tag, especially the latest models.
Sure, it’s exciting to get your hands on the newest technology, but is it really necessary to spend hundreds, if not thousands, of dollars every year just to stay up to date?
I mean, what’s the real difference between last year’s model and the latest one?
There might be some minor upgrades here and there—a slightly better camera, a faster processor, or a slightly larger screen. But will that new model do something that your phone can’t already do?
Chances are your smartphone is still a perfectly capable device that meets your needs. Take the time to explore its features, customize it to your liking, and make it work for you.
Of course, there may come a time when your phone starts to show its age and you genuinely need an upgrade. But even then, consider your options carefully. Do you really need the latest flagship model, or would a slightly older model be enough? You might be surprised at how much money you can save by purchasing a slightly older device.
Purchasing specialty cleaning products when basic ones are enough
Why spend extra cash on a separate cleaner for your countertops, floors, windows, and mirrors when one good can handle them all?
Basic cleaners, when used correctly and consistently, are more than capable of keeping your living space hygienic without the need for an overkill of chemical firepower
Sometimes specialty cleaning products can come in handy, like tackling tough grease or dealing with stubborn mold. But for your everyday cleaning needs, sticking to the basics is not only budget-friendly but also practical.
Impulse purchases
Impulse purchases are when you buy something without really thinking about it beforehand. You see something and decide to buy it right away, often because it seems fun or exciting at the moment.
If you keep making impulse buys, it can mess up your budget. You might end up spending money you should have saved or used for something more important.
To avoid wasting money on impulse purchases, it’s a good idea to think before you buy, stick to a budget, and only buy things you truly need or will enjoy for a long time.
Food waste
Food waste is a waste of money because when we throw away food, we’re throwing away the money we spent to buy it.
Imagine if you bought a sandwich but only ate half of it before throwing the rest away.
That’s like throwing away half of your money! Food costs money to produce, transport, and sell, so when it gets wasted, all that money goes down the drain.
Plus, when we waste food, we also waste the resources used to make it, like water, energy, and land. So, it’s not just about losing money; it’s also about being responsible with the resources we have.
