The Monthly ‘Convenience’ Costs That Are Secretly Wrecking Your Budget
Let’s face it: Life is hard. When given the opportunity to make things easier, most people take it. So it’s no surprise Americans are willing to fork over extra cash to avoid inconvenience. Unfortunately, all those “small” convenience costs can quietly add up — and take a serious toll on your budget.
So which ones are the worst offenders?
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Here are a few convenience costs that may be draining your wallet — and lower-cost alternatives to consider instead.
Food Delivery Apps
Want Chipotle delivered right to your door? Just click a button! Unfortunately, food delivery apps are the worst offenders, wrecking your budget. Cody Schuiteboer, president and CEO of Best Interest Financial, said his clients find themselves spending anywhere from $400 to $700 per month on services like DoorDash and Uber Eats without realizing it.
Hayley Dickson, certified financial planner and founder at RIPPL Wealth Management, explained that an $18 bottle of organic olive oil at Costco increases to $24 via food delivery apps because of the 15% app markup, app service fee, app delivery fee and tip. As an alternative, just bite the bullet and go pick up your food from the store. Or, better yet, cook at home.
Provider Loyalty
When it comes to internet and mobile services, most people tend to stick with one of “the big 3” providers. This is because, as a smart shopping expert at TrueTrae.com, Trae Bodge, pointed out, better the devil you know than the devil you don’t. Translation? It’s a lot of hassle to research, switch to and trust a different carrier rather than keep using the one you already have — even if it’s more expensive.
However, smaller, lesser-known providers like Mint Mobile have 5G plans for as low as $15 per month. By contrast, T-Mobile’s lowest 5G plan starts at $35 per month. Consider doing your research and perhaps spending a couple of hours transferring service.
Autopay
Schuiteboer stated the average American spends about $219 per month on subscription services. If that number seems high, Schuiteboer explained it’s because it starts with someone signing up for a mere $12 monthly service … then mindlessly putting it on autopay, forgetting about it and signing up for 17 more.
Schuiteboer advised conducting a quarterly audit of your finances. This means pulling up three months of bank statements to physically see all your charges and then cancelling any services you aren’t actively using.
ATM Fees
It’s annoying when ATM’s charge you to take out money that is already yours. But if an ATM is not your specific bank’s ATM, that’s exactly what happens. And, when you’re in a crunch, paying a few extra dollars is more convenient than locating and driving to your own bank’s ATM.
Schuiteboer stated that transaction fees from different banks average $4.77 apiece. That means if you take out money once a week from an ATM that does not belong to your bank, there’s $19.08 per month down the drain. He recommended switching to another bank that reimburses these ATM transactions or only withdrawing cash from ATM’s that belong to your bank.
Expedited Shipping
Why wait ten days to have Cher’s memoir delivered when you can pay extra and receive it the next day? Well, because if you do it enough times, it messes up your budget. While fees for expedited shipping range from $5 to $15, they add up. Schuiteboer said his clients spend $200 to $400 annually on expedited shipping alone. That breaks down to anywhere between $17 and $33 per month. And, for some, $30 is enough for a few days of meal prep.
The obvious alternative is to be patient. But, if that seems unrealistic, Schuiteboer advised placing an item in your cart and then just leaving it there for two days. There’s a good chance you’ll receive an email from the retailer with a discount code or the option of free shipping in order to encourage you to complete the purchase. Hey, two days is still less than ten.
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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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