We’ve all been there—standing at the end of the month, scratching our heads, wondering where all our hard-earned money went.
It’s like we’re watching our finances slip away right before our eyes.
After my younger dog got sick, I had to become serious about my finances because a huge portion of my earnings was going towards her treatment and care.
This forced me to scrutinize my monthly bills and stop all the unnecessary spending.
I’ve been guilty of these money-wasting habits, and if you’re reading this, I bet you have too.
The good news?
Awareness is the first step to change.
Let’s dive into the 21 things that are secretly draining our bank accounts and how we can plug those leaks for good.
1. Subscriptions You Forgot About
Remember that free trial you signed up for last year?
Yeah, it’s still charging you.
With so many streaming services, fitness apps, cloud storage, and even obscure magazine subscriptions, it’s easy to lose track.
I realized I had so many subscriptions that I wasn’t even using – I had a subscription to a few drawing courses that I’ve been renewing every year (promising myself that I’d watch them this year) and never making the time to do so.
These tiny monthly charges might not seem like much, but over time, they add up to hundreds or even thousands of dollars.
Take a few minutes to review your bank statements and cancel the ones you’re not using.
If you really want to keep some of them, see if you can switch to a lower-tier plan or share accounts with family members to split costs.
I currently split my Amazon Prime, Duolingo, and Netflix with my dad and partner and it’s totally worth it!
2. Unused Gym Memberships
Ah, the gym membership.
A symbol of our best intentions and our worst follow-through.
Many people sign up for the gym with full enthusiasm, thinking they’ll go every day.
Then life gets in the way, and before you know it, months have passed without a single visit.
If you’re not going regularly, consider working out at home, jogging outside, or finding free workout videos online.
I do have a gym membership but I pay monthly instead of yearly. Until I’ve actually built the habit, I don’t want to commit to an annual charge.
Not only will you save money, but you’ll also remove the guilt of paying for something you don’t use.
If you’re set on keeping it, look into flexible membership plans that let you pause or adjust your subscription.
3. Coffee Shop Runs
I get it—there’s nothing like a fresh cup of coffee made by someone else.
The aroma, the creamy foam, the convenience of grabbing one on the go.
But those daily $5 lattes are costing you over $1,200 a year!
And let’s be honest, for many of us, it’s not just coffee; it’s a pastry or an impulse snack added to the order.
Investing in a quality coffee maker or an espresso machine can be a game-changer! I’m not even kidding.
You can experiment with flavors, save a ton of money, and still enjoy a great cup every morning.
If you can’t resist the coffee shop experience, try limiting your visits to once or twice a week.
4. Bottled Water
Buying bottled water is like pouring money down the drain.
It’s one of those expenses that doesn’t seem like much in the moment, but over time, it drains your wallet.
Not to mention, it’s terrible for the environment.
Instead, get a good-quality reusable water bottle and a water filter for your home.
Not only will you save money, but you’ll also reduce plastic waste.
If you frequently forget to bring a bottle with you, try leaving one in your bag or car so you’re always prepared.
5. Impulse Online Shopping
Online shopping makes it too easy to splurge on things we don’t need.
Everytime I am feeling low, my first impulse is to open Amazon and add random items to my cart. I love stationery, mugs and books and it had become an addictive habit.
I know reading is something I’ll never quit, so I switched to kindle membership that gives me unlimited books every month.
Those flash sales, one-click purchases, and “limited-time offers” are designed to make us spend impulsively.
Marketers are experts at creating a sense of urgency, making you think you’ll miss out if you don’t buy now.
Before clicking ‘buy’, ask yourself: Do I actually need this?
Will I still want it a week from now?
A great trick is to add items to your cart and wait at least 3 days before checking out.
Many times, the urge will pass, and you’ll save yourself from unnecessary purchases.
Also, unsubscribe from promotional emails and turn off app notifications – trust me it will help you spend way less money.
6. Eating Out Frequently
We all love a good meal out, and sometimes, we justify it as a reward after a long day.
Because my work is very intense, I often used food as a reward.
And I used to love takeout.
But I noticed that takeout really took a toll on my finances every month.
Even fast food adds up quickly when you’re grabbing something every day.
So, I started cutting down to 2-3 times a week.
Try meal prepping for the week (during the weekend) so you have something ready to eat at home.
You don’t have to give up dining out entirely—just set a budget for it and stick to it.
Cooking at home is not only cheaper but often healthier and more satisfying.
I like looking at YouTube and searching for easy-to-make 15-30-minute recipes – trust me, they’re a game-changers.
7. Brand-Name Products
From clothes to groceries, brand-name items can be significantly more expensive than generic alternatives.
The funny thing is, many store-brand products are made by the same manufacturers as the pricier name brands!
When shopping, compare ingredients and quality—chances are, you won’t notice a difference. F
or big-ticket items like electronics, cars, or furniture, always research whether the brand name is truly worth the premium price.
8. Paying for Convenience
Convenience fees, delivery charges, and surcharges sneak up on us.
Food delivery apps, convenience store purchases, and pre-cut produce are all examples of paying extra just to save a little time.
While sometimes convenience is worth it, be mindful of how often you’re opting for it.
Cooking your own meals, walking instead of taking a short Uber ride, or planning ahead can save you hundreds in a year.
I’m not asking you to quit everything – but reducing makes a big, big difference!
9. Neglecting to Negotiate Bills
Cable, internet, insurance—these bills are often negotiable.
A quick phone call can save you hundreds each year.
Companies want to keep your business, and many will offer discounts if you ask. Some even give you a good discount if you pay for 2-3 years at a stretch.
Internet and electricity is something that we seriously can’t live without – so why not try to get a good bargain?
10. Letting Food Go to Waste
How often do you throw away spoiled food?
Plan your meals, use leftovers creatively, and avoid grocery shopping on an empty stomach to prevent overbuying.
It sounds small but this particular expense adds up so much at the end of the year.
11. ATM Fees
Paying to access your own money is a frustrating expense.
Use in-network ATMs or withdraw extra cash to avoid those pesky fees.
If possible, manage all your expenses with a credit card.
I put everything on my credit card because it gives me so many points. I pay my bills on time so I never have any extra charges.
12. Overdraft Charges
Accidentally overdrawing your account can lead to hefty fees.
Set up alerts or keep a buffer in your checking account to avoid this costly mistake.
13. Extended Warranties
Retailers love to upsell extended warranties, but they’re usually not worth the cost.
Many products come with a manufacturer warranty, or your credit card may offer protection.
Skip these unless you really, really want it.
14. Buying Items Just Because They’re On Sale
A deal isn’t a deal if you don’t need it.
Avoid the trap of buying things just because they’re discounted.
15. Not Shopping Around for Insurance
Loyalty doesn’t always pay when it comes to insurance.
Compare rates regularly to ensure you’re getting the best deal. It’s a bit of hard work but keeping 2-3 days at the beginning of the month just to organize your monthly finances is really helpful!
16. Not Maintaining Your Car
Ignoring routine maintenance can lead to costly repairs down the road.
Regular oil changes and tire rotations can save you thousands in the long run.
So, make sure you’re on top of things.
Or use public transport and avoid the car expenses completely if you’re single and staying alone.
17. Buying New Instead of Used
From cars to clothes, buying new is almost always more expensive.
My partner needed a snow coat and snow shoes, he got such good ones (hardly used) at a Thrift shop and he hardly spent $25.
Consider thrift stores, consignment shops, and certified pre-owned items especially if you need something big for a special event.
18. Forgetting to Return Items
How many times have you bought something, decided you didn’t want it, and then forgot to return it?
Set a reminder to return unwanted items before the return window closes.
19. Not Using Public Transportation
If you live in an area with reliable public transportation, skipping it in favor of driving everywhere can be a money pit.
Between gas, parking fees, and maintenance, using a car for every trip adds up fast.
Try incorporating buses, trains, or biking into your routine where possible—you’ll save money and reduce wear on your vehicle.
My partner got rid of his car this year and he’s been riding his cycle to the local swimming pool – he’s been having so much fun doing this.
20. Overpaying for Cell Phone Plans
Many people pay far more than they need to for their cell phone plans.
If you’re on an expensive unlimited plan but barely use data, consider switching to a cheaper plan that better fits your needs.
I realized I didn’t need such a big data plan because I use Wifi when I’m at home and since I work from home, there was no need to spend so much on my mobile plan.
Look into discount carriers that use the same networks as the big providers but offer lower prices.
21. Not Setting Financial Goals
Without financial goals, it’s easy to let money slip through your fingers without purpose.
Whether it’s saving for a house, investing, or planning a vacation, having clear financial goals can help you stay motivated and avoid wasteful spending.
Take time to outline your short- and long-term financial priorities to ensure your money is working for you.
Final Thoughts
Cutting out these money-wasting habits won’t make you a millionaire overnight, but it will definitely help you keep more of your hard-earned cash.
Remember, small changes can lead to big savings.
Start by tackling one or two of these habits, and before you know it, you’ll see a significant difference in your financial health.
What are some of the money-wasting habits you’re trying to break? Let me know in the comments below!
