These 5 Everyday Big Purchases Could Be Sabotaging Your Savings
Sometimes, the key to saving money is simply cutting out stuff that quietly drains your budget. Frugal people are known to hold onto things well beyond their expiration date, especially if they cost a pretty penny initially, but that habit can come with a higher price tag than you think.
Some goods require more energy or cause more trouble than they're worth. With that in mind, here are five big-ticket items you should get rid of now if you really want to save money.
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1. Old Appliances
Old appliances, particularly refrigerators and air conditioners manufactured before 2001, are prominent energy vampires, according to Abid Salahi, co-founder of FinlyWealth. "A 20-year-old fridge can consume up to 1,700 kWh annually, costing around $200 per year in electricity," he said.
Replacing with Energy Star-certified models can significantly reduce energy use, saving hundreds over the appliance's lifetime. Simply put, older appliances and electronics drive up your utility bills. Replacing with energy-efficient models saves money in more ways than one.
2. Rarely Used Vehicles
"Rarely used vehicles in the driveway aren't just depreciating assets; they're money pits," Salahi added. Even when unused, he noted that cars require insurance, registration fees and periodic maintenance.
"Selling an extra vehicle can save [thousands] annually in ownership costs, not to mention the potential cash influx from the sale."
3. Unused Gym Equipment (or Memberships)
"Unused gym equipment takes up valuable space and represents a sunk cost that could be recouped," said Salahi. He added that high-end treadmills or elliptical machines often fetch hundreds on the resale market.
Eliminating these energy-hungry devices can also save upwards of $100 annually on your electric bill. In addition, gym memberships, fitness apps or any other unused subscriptions can add up fast. Review your monthly charges and cancel anything you haven't used in the last 30 days.
4. Timeshares
"Timeshares are notorious money drains, with average annual maintenance fees exceeding $1,000, not including special assessments or travel costs," Salahi explained.
While selling a timeshare can be challenging, eliminating this financial burden can save thousands over the years and remove a source of stress and obligation from your life.
5. Oversized Homes
Oversized homes often lead to inflated utility bills, higher property taxes and increased maintenance costs. Downsizing to a more appropriately sized living space can slash these expenses dramatically.
"For instance, moving from a 2,500 sq ft home to a 1,500 sq ft home could save upwards of $10,000 annually when reducing utility costs, property taxes, and maintenance expenses," Salahi said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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