You try to be good and save money where you can. However, at the end of the month, you’re not seeing any more money in your account. What’s happening?
You are most likely overspending on things without even knowing it. It may be a case of several little charges adding up to “missing money,” or you could be overspending on big-ticket items.
To help you pull the reigns in on your spending, here are some of the most infamous money-wasters that silently bleed us dry.
1. Eating Out/ Fast Food
Most people are aware they eat out too much. However, they may not realize how much damage they’re doing to their finances. In fact, almost 3 out of 4 young people admit to overspending on dining out and fast food.
Part of the issue has been the growth of brunch over the last decade or so. We’ve basically added another meal that we spoil ourselves with, and a nice brunch can easily be more expensive than many dinners out.
2. Mattresses and Beds
We now live in an age where you don’t have to drop a thousand dollars on a quality mattress from a department store. More and more people are discovering the benefits of a mattress-in-a-box and saving a fortune in the process.
Skip the trip to the store and buy online directly from the manufacturer. You can save a few hundred dollars by buying a high-quality memory foam mattress and getting it delivered right to your front door.
3. Online Subscriptions
How much money do you think you’re spending every month on online subscriptions? It can’t be that much right? There’s $11.99 for Netflix and another $9.99 for Google Play Music. Oh, yeah and Amazon Prime too.
It turns out the average person is spending more than they think. When asked to add up all their monthly subscriptions in their head, the average person thought they were paying $79.74. However, once they had more time to add it all up properly, the average total was actually $237.33.
That adds up to almost $160.00 in “missing” money every single month.
4. Extended Warranties
This is basically a tax on being “better safe than sorry.” A lot of people are still paying an extra $39.99 at checkout for an extended warranty on electronics. Statistically speaking, that extra coverage rarely helps people.
This is particularly wasteful when you learn that the odds are pretty good that your credit card offers you a free extended warranty on these items anyway.
5. Rental Car Insurance
Some people will tell you that you’re crazy for doubling the price of your car rental for such a low probability of an accident. Others will say you’re crazy not to, as this is a $20,000 automobile.
However, this could be another case where your credit card will give you free coverage, you simply have to ask. Also, your own car insurance policy could be extended to rentals. You should always look into it.
Of course, budgeting and keeping an eye on your spending is always the best way to save money. However, when you’re doing so, keep an eye out for those five expenses and you can save your money a lot quicker.