As the cost of living continues to rise, many people are looking for effective strategies to cut down on their monthly spending. Often, unnecessary expenses can add up without us even noticing. This list explores various common areas where you might be unknowingly wasting money each month, offering insights into how you can better manage your finances and keep more cash in your pocket.
Gym Memberships
A significant portion of gym memberships go underutilized, with members either not attending at all or not enough to justify the monthly cost. Instead, opt for free or low-cost alternatives such as running, walking, or home workout videos. If you do take out a gym subscription, try to make sure you’re not tied in for too long.
Expensive Satellite TV Packages
Many satellite TV packages are no longer necessary due to the affordability of streaming services, where many of the same shows and movies can be found. Save money by ditching the satellite subscription and choosing one or two streaming services to subscribe to.
Gourmet Pet Food
Expensive pet food markets itself as superior to pet owners, but cheaper brands often offer comparable nutritional value. Do your research to save on your pet’s food without compromising on their health, as, unless prescribed by a vet, gourmet foods are largely unnecessary.
Diet Plans and Supplements
Many diet plans and supplements offer consumers little benefit and usually come with a high price tag. Supplements are less regulated than other food products, so you might not get the nutrients you think you will. Focusing on balanced, whole foods can be a more beneficial and cost-effective way to stay on track.
In-App Purchases
Small purchases and subscriptions within apps can add up to a significant monthly cost and often don’t offer long-term value or satisfaction. Finding free or one-time purchase apps can provide the functions and entertainment you need without incurring ongoing costs.
Premium Petrol
Most vehicles do not require premium gasoline, and using it provides little to no benefit in performance for cars designed for regular unleaded. So, stop wasting your money and just stick to unleaded 95 or regular diesel.
Bank Fees
Monthly account maintenance, ATM, and overdraft fees all add up and can become a significant expense without you noticing. Lots of banks offer free services and savings accounts, or you could look to switch to a digital bank to eliminate a lot of the traditional banking fees.
Late Payment Fees
Not paying bills, credit cards, or loans on time can result in some hefty fees, waste your money, and potentially affect your credit score. To avoid this, set up automatic payments or set reminders to make sure you don’t forget.
Overpriced Insurance Policies
While it seems sensible to be prepared for the worst, Become says that we’re often over-insuring our homes, cars, and belongings. “You’re better off tweaking your coverage so that it’s balanced between providing adequate protection and being suitable for your financial situation—rather than paying a high premium that you can’t afford, for a level of cover you don’t need.”
Energy Inefficiency
According to the Department of Energy, “of the ~£1,500 the average person spends paying for energy annually, £150 to £300 could be going to waste from drafts, air leaks around openings, and outdated heating and cooling systems.” Be sure to regularly evaluate areas where heat could be escaping and unplug appliances you’re not using to save money.
Overpriced Mobile Phone Plans
When buying a mobile phone plan, it can be tempting to opt for a more expensive plan that offers you more data allowance or other features you might want; however, it’s a good idea to monitor how much of this you are actually using and switch to a cheaper plan if you can.
Designer Baby and Kids’ Clothing
Children outgrow clothes and shoes quickly, so expensive purchases are impractical. They are also likely to end up stained or damaged, so if there’s an item you or your kids really want, check out marketplaces and thrift stores for the same item at a fraction of the cost.
Impulse Buys at Checkout
Impulse buys exploit a moment of weakness or a temporary want and are often significantly marked up due to their convenient placement. Even small purchases add up to a significant monthly cost, so try to stick to your list to save money.
Premium Streaming Subscriptions
Streaming services are a great way to access fantastic TV and movies; however, subscribing to multiple services at once can become costly, and you’ll rarely be using all of them at the same time. According to Forbes, “People are spending an average of £425 on streaming services a year.”
Brand-Name Groceries
A higher price tag doesn’t necessarily mean higher quality, and most stores offer their own brand of goods that are just as good as the brand-name products. Staying loyal to a brand is often just a result of marketing rather than a superior product.
High-Interest Credit Cards
You might be getting rewards by shopping with a high-interest credit card, but unless you’re paying off the balance each month, you could risk paying more than the original price of the product. If you have a bit of credit card debt, look to transfer the balance to a lower-interest card to help you pay it off.
Extended Warranties
According to Money Helper, extended warranties may not be worth it. They say, “Goods should be of satisfactory quality, fit to do the job intended, and last a reasonable length of time,” so regular warranties should suffice. On top of this, you might already be protected by your credit card or home insurance.