5 Things You're Wasting Money On Without Realizing It

Allie Runnion illustration for Just Us Gals

You wouldn’t pull a $50 bill out of your pocket and rip it to shreds before dumping it on the sidewalk, right?

Of course not! That sounds downright crazy and a total waste of a lot of money… and yet, you’re probably wasting cash in other ways at this very moment. They’re just not so dramatic, and therefore, you might not notice.

And considering the recent situation we’ve all found ourselves in with a pandemic-induced economic slowdown, now is not the time to waste your hard-earned dollars. Here are common ways and places in which holes in your budget can spring up — and how to plug the leaks.

Almost Any Kind of Fee

Fees show up everywhere, and they’re a top culprit of financial waste because you probably don’t need to pay them!

Let’s start with bank fees. There are way too many options for you to justify staying with a bank that charges you a fee for something like account maintenance or minimum balance requirement. Switch to a bank that does not charge service or maintenance fees and won’t penalize you for having a smaller balance.

Other fees you shouldn’t be paying are late fees. That doesn’t mean miss a payment and not have to pay… it means don’t miss those payments in the first place! Set calendar reminders, alerts on your phone, or email and text messages so you don’t forget the due date for bills.

If you’re paying other kinds of fees, inspect them closely and compare your current options to a company’s competitors. Are there similar solutions that won’t charge fees? Can you make a switch to a better provider? Question everything! Make sure you’re not paying more than you have to.

And while not exactly a fee, I’d argue that paying for a subscription or recurring service you no longer use or value is kind of along the same lines. As long as you’re auditing your accounts and transactions for fees you shouldn’t be paying, go ahead and look for recurring payments that have outstayed their welcome.

That might include old magazine subscriptions, monthly payments to subscription box companies that you don’t really need, or membership dues to organizations you don’t participate in any longer. 

Splurging on Luxury Goods for Everyday Items

This might sound a little counterintuitive, but spending big bucks on luxury goods when it’s something you use every day can be a big waste of money.

Why? Because as humans, we’re highly adaptable. It’s part of what makes us so successful as a species. But when it comes to how we spend, that adaptability is detrimental to our happiness and satisfaction with what we buy. 

The more we use or interact or experience something, the more normal it becomes. What started as a novelty quickly becomes something you don’t even notice (and therefore, don’t appreciate) because it’s just part of your routine, everyday life.

That’s why in her book Happy Money: The Science of Happier Spending, Dr. Elizabeth Dunn recommends splurging on luxury goods only when you rarely use the item — because it’s more likely to retain its novelty and sense of being special that way.

The Food You Buy, But Let Go to Waste

The way Americans waste food is criminal. A 2017 report found that we throw away a full half of all the produce we grow! If you’re throwing away food, you might as well be shredding you hard-earned dollar bills while you’re at it (not to mention the negative environmental and social impact this has, too).

I’m sure you don’t mean to do this, but if you find yourself constantly throwing out food you bought but didn’t eat, it’s time to make some changes to eliminate that waste and save some money.

Here are my favorite ways to cut back on food waste:

• Start simply buying less at the store (and make a list to take with you when you go shopping… then stick to the list!). It might take some trial and error to figure out how much is the right amount to buy for your habits.

• Freeze things ASAP! You can freeze fruits, veggies, fish, and meat — or even things like shredded cheese, bread, and butter. If you’re not sure you’ll get to something while it’s fresh, freeze it now so you don’t have to worry about it going bad.

• Organize your fridge and pantry; know what you have and how much you have.

• Plan your meals on a weekly basis and cook things in order of how long they’ll stay fresh. Prepare and eat the ingredients you know will go bad fastest, first. (So if you have a ton of veggies, use those now — and save the chili recipe that relies almost entirely on canned goods for later).

If you feel like it’s a struggle to figure out how to prepare or plan your meals, you might want to follow some food bloggers on Instagram for ideas, inspiration, recipes, and tips on organization and prepping.

Interest on Debt

As much as you’d probably like to, you can’t just snap your fingers and make your debts go away. But you could be paying more than you need to on the interest rate — especially if you carry credit card balances.

If you have credit card debt, consider getting a balance transfer card with a introductory 0% APR offer for a period of time (usually that period lasts from 12 to 18 months, depending on the card). This will save you on interest… so long as you have a plan to repay the balance in full before the zero-rate period expires.

For loans, you might want to look into refinancing to a lower rate. This might not be an option if you already have a very low interest rate or are almost done paying off your balances, but it’s worth researching to understand the choices available to you.

Just don’t think that refinancing is always a good decision, especially if you have federal student loans. It’s an option, but not the right one for everyone 100% of the time. Do your research that considers your specific situation before making any decisions here.

Tying Your Social Life to Expensive Activities

Sharing a cocktail or glass of wine with your friends for a happy hour isn’t necessarily wasteful… unless you start doing that multiple nights a week (and also ordering apps, and dessert, and then going to another bar for another round…), and doing brunch on the weekends, every single time you want to be social.

There is nothing wrong with any of these things on their own or when you do them occasionally. But when it becomes your habit to go out and spend $50 to $100 every time you hang with other people, that’s a lot of money wasted.

You can better stick to your budget — without whittling away at your social life — by making a few simple switches. Opt for more nights in, for example.

Pick up a $15 bottle of wine and have a potluck. Maybe you can host a Netflix watch party and have everyone bring their favorite snack. Start a book club. Or instead of going to a $35 workout class, ask a friend to join you for a $4 coffee and a long walk.

Get creative, and know that you don’t have to spend a ton of money to spend quality time with your friends. 

Kali Roberge is a personal finance writer who contributes to JUGs to explain how freelancers and entrepreneurs can make the most of their money, and writes about mindful living through intentional spending through her email series, LETTERS. You can find her @KaliRoberge

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