Image source: Getty Images
Every cent that we spend in our daily lives adds up. Some expenses like rent, mortgage, and groceries are a must. But other costs can be avoided. You may be spending money on unnecessary expenses, which could make it more difficult for you to reach your financial goals. Do any of these costs sound familiar?
1. Unused subscriptions
Many of us pay monthly or yearly subscription fees for things like software, mobile apps, and streaming services. But if we're not using these services, we're wasting money. Reviewing your subscriptions a few times each year is not a bad idea to ensure they're worthwhile and provide value. Canceling unused subscriptions can free up money to put more money toward your savings or debt payoff goals.
2. Credit card interest
Credit cards are convenient, but paying your entire monthly balance is essential. If not, you'll be charged credit card interest. These costs can add up quickly and result in you paying more than necessary. You can avoid this by not carrying a balance on your card.
If you have an expense coming up that you know you won't be able to pay off right away, using a 0% APR credit card can help you avoid these extra fees. Review our list of the best 0% APR credit cards to learn more about your options.
3. Food waste
How often do you throw out food that has gone bad? This is something that many people do. Food costs are exceptionally high, so allowing food to go bad is a big waste of money. One way to reduce this added expense is to plan what meals you will make as you create your shopping list. The less food you waste, the more money you'll save.
4. Bank fees
Bank fees are another added expense that impacts your finances. For example, many people pay monthly maintenance fees without giving it much thought. You can avoid these fees by choosing a bank that doesn't charge them or taking steps to avoid them. Many banks outline steps to avoid fees, like monthly maintenance fees, such as setting up direct deposit or maintaining a certain account balance.
5. Name-brand medications
While name-brand medications are the best option for some, they may not always be necessary. If your prescription costs are getting out of hand, you may want to explore generic drugs. Generic medications are usually more affordable. If you take multiple medications, you may be able to save a significant amount of money by switching to generics.
6. Delivery app fees
Another expense that you may be able to avoid is delivery app fees. These apps are convenient because they make getting food delivered quickly to our homes easy. But delivery fees add up fast. One way to avoid these fees is to consider ordering takeout from a local eatery and opting for pickup instead of delivery.
If you frequently order delivery, you may be able to eliminate these fees by investing in a delivery app subscription. While these subscriptions come with a monthly fee, you may find it more affordable when compared to the total fees you've been paying without them.
7. Cell phone insurance coverage
Many people pay for cell phone insurance. Typically, this expense is added to your mobile phone bill. It's worthwhile to consider protecting your purchase, as cell phones are expensive. But you'll be spending a lot if you pay for this coverage and never use the benefits. Another option is to see if you have a credit card with cell phone protection benefits. This coverage may offer a more affordable way to protect your phone against damage or theft.
Every extra expense adds up
While some extra expenses may not be too pricey, they all add up over time and impact your personal finance situation. If you want to free up more cash to hit your savings goals sooner, it's a good practice to monitor your spending to find ways to trim excess costs. One easy way to do this is by using budgeting apps to track purchases and set spending goals.
Alert: highest cash back card we've seen now has 0% intro APR until 2024
If you're using the wrong credit or debit card, it could be costing you serious money. Our expert loves this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.
In fact, this card is so good that our expert even uses it personally. Click here to read our full review for free and apply in just 2 minutes.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
