7 things you’re wasting your money on
However, over time, even the most budget-conscious consumers can find themselves spending more than they need on certain expenses.
1. Bank fees
Reduce waste: Change banks. According to Bankrate, nearly half of checking accounts have no monthly maintenance fees. The cost of the monthly fees, if you can’t avoid them with your current bank, will likely be higher than any interest you’re receiving on that account.
2. Sell items you don’t need
There’s no denying the thrill you get when you buy an item for less than its usual price. But spending money on things you don’t need just because it’s on sale can quickly lead to overspending.
Reduce waste: Next time you’re lured into buying something on sale, wait 24 hours before making a purchase. Often the initial excitement of receiving a deal wears off and you’ll be able to walk away from the deal.
3. Subscriptions you do not use
“These things go into autopay, and then people don’t even realize they’re paying for something they don’t even use,” Ramhold added. “It’s an easy way to make money from windows.”
Reduce waste: Even if your credit card is set to autopay (this is a smart way to avoid late fees), review your statement carefully each month and cancel any charges for items or services you do not use.
Cut down the costs: Take a look at your fridge before you head out to the supermarket. Then, plan your meals (and your shopping list) around the ones you already have. That way, you’ll not only be sure to use those items before they go bad, but you’ll also be less likely to buy new groceries that go to waste.
5. Extended Warranty
According to Ramhold, while extended warranties on your car, home appliance or other electronic device can cover the cost of future repairs, they don’t always provide benefits. big for consumers. Sometimes the cost of the plan will exceed the potential repair cost, or it won’t cover the problem you’re having, Ramhold says. Additionally, many credit cards include extended warranties on some purchases, so you may be paying for the coverage you already have.
Reduce waste: Instead of paying for an extended warranty, consider moving your extra money into an emergency account that you can use to cover repair costs, should they arise. If you already have a fully funded emergency account, you can skip this expense altogether.
6. Overpaying for insurance
Like most services, the cost of auto and home insurance usually adds up over time, but if you’ve been using the same provider for several years, you might want to shop around to see if Can I find a better price?
“New customers get deals with new customers,” says consumer savings expert Andrea Woroch. “You may be able to find a policy that offers the same or better coverage for a lower fee.”
Reduce waste: Check online sites like TheZebra.com or Policygenius for insurance quotes. If you’re happy with your current coverage and providers, you can use those quotes as ammunition in negotiations for a better price.
Other ways to cut your bills: Bundle home and auto insurance with the same provider, or increase your deductible. By doing those two things, Woroch said she was recently able to cut her insurance bill by $1,100 a year.
7. Credit card interest rates
Reduce waste: If you’re in debt, focus on paying off your existing balance and order your card now.
“If you’re having problems with credit card debt, maybe this is the right time to put your card away and use cash or a debit card instead,” advises Ramhold.
An earlier version of this story misrepresented the insurance website TheZebra.com.