15 Hidden Ways You're Bleeding Money Every Month
There are some expenses you plan for every month — your rent or mortgage, utilities, your cellphone bill, etc. — but there are also a lot of hidden expenses you’re paying for regularly that you might not be aware of. These little costs could quickly add up, whittling away at your hard-earned money and paycheck.
Uncover the hidden ways you’re losing money every month, so you can start making moves to ease your money stress and stop the bleeding.
1. Paying Checking Account Fees
Some banks charge monthly fees or service charges for their checking accounts. Those fees could end up costing you over $100 a year — and you probably don’t even realize you’re being charged for them. Instead of paying these fees, switch to a free checking account.
2. Paying High Interest Rates on Your Credit Card Debt
Unfortunately, you can’t wave a magic wand and make your credit card debt go away, but you might not have to be paying such a high-interest rate on it. Consider consolidating your high-interest debt through a personal loan.
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3. Throwing Food Away
You might not think about it, but when you throw food away — whether you purchased it at a restaurant or at a grocery store — you are throwing money away. A 2012 study by the Natural Resources Defense Council found that the average American family of four ends up throwing away an equivalent of up to $2,275 in food every year, or about $190 every month.
4. Keeping Unused Appliances Plugged In
Any appliance that’s plugged in is using energy, even when it’s turned off. A 2015 study by the Natural Resources Defense Council found that “idle load electricity” accounts for 23% of power consumption in the average household — and about 25% of your electricity bill. Cut down on these hidden costs by unplugging appliances when not in use.
5. Keeping Your Home Too Cold (or Too Warm) When You’re Not There
Leaving your air conditioning or heat blasting when you’re not home is a waste of money. According to the U.S. Department of Energy, you can save up to 10% a year on heating and cooling costs by turning your thermostat back 7-10 degrees from its normal setting for eight hours a day. This might be harder to do if you’re working from home, but consider utilizing open windows and ceiling fans when possible to cut down on cooling costs.
6. Ordering Out for Lunch Multiple Times a Week
It’s wasteful to buy lunch every day of the week. Try meal prepping your own lunch at least three times a week to save big for the month.
7. Buying Brand-Name Items
From groceries to medications, many generic items are equivalent in every way to the brand-name item — but they are significantly cheaper. If you’re only buying brand-name goods, you’re spending more than you need to be.
8. Living In a Drafty Home
Windows and doors that allow air to escape can add to your electricity bill. Caulking and weatherstripping doors and windows that leak air can cut down on your heating and cooling costs.
9. Missing Out on Your Employer Match
Even if you already have no- or low-fee funds in your investment account, there’s another way you could be losing money from your retirement account — missing out on your employer match. If your employer offers a matching contribution and you are not contributing at least the maximum matched amount, you are throwing away free money every paycheck.
10. Having Everything Delivered
There are some instances when having things delivered is more of a necessity than a luxury — say, when we’re in the middle of a global pandemic — but in other cases, it really is a waste of your money. Delivery fees for your dinner, clothes and other items can really add to your monthly expenses, even if they’re only a couple of dollars each time.
11. Paying Retirement Account Fees
You might be paying fees on mutual and exchange-traded funds that you’re unaware of, and these fees can take a big bite out of your potential investment returns. Look out for high expense ratios, mutual fund transaction fees, commission fees and administrative fees.
12. Subscribing To Cable Channels You Don’t Watch
Your cable bill can be a major monthly expense. If you’re not ready to fully cut the cord, you should at least make sure you’re using all the services you pay for. If there’s a channel package you’re not watching, cancel it. If you’re paying for an extra box in a room you never use, get rid of it. If you pay a monthly fee to rent a modem from your cable company, consider buying your own, as it will pay itself off over time.
13. Driving Around With Improperly Inflated Tires
Having improperly inflated tires can be adding to your monthly spending at the pump. You can improve your gas mileage by up to 3% by keeping your tires inflated to the proper pressure, according to the U.S. Department of Energy.
14. Not Taking Advantage of Your Local Library
You can lower the amount you’re spending monthly on entertainment by taking advantage of the resources at your local library. You can rent books in a variety of formats — including e-books and audiobooks — and movies too, all for free.
15. Keeping a Gym Membership or At-Home Workout Subscription You Never Use
If you have a gym membership, live in an area where gyms are open and actually go, great, but if you’re going once or twice a month — or never — it’s not worth the cost. The same goes for at-home workout subscriptions that you may have signed up for at the beginning of the pandemic but no longer utilize. If you put your membership on autopay, you might not realize that you’ve been paying monthly for a resource you never use.
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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