There’s nothing like a new year to make you reflect on all the ways you could improve your financial situation. If you find yourself in a place you’re not exactly happy with in terms of money, it’s time to assess the ways you may have wasted it in 2024.
GOBankingRates spoke with Shirley Mueller, finance expert and founder of VA Loans Texas, and Amy Coroso, certified financial education instructor and YNAB coach, and owner of Real Talk Finance, to discuss some of the ways you may have gone overboard with finances and how to better go about it moving forward.
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Convenience Spending
“In my experience, 2024 was a year when convenience spending quietly drained people’s wallets,” said Mueller. “I saw clients overspend on unused subscription services, streaming platforms, meal kits, gym memberships, that they signed up for in moments of enthusiasm but rarely used.”
She said another big culprit was impulse online shopping. Flash sales and “limited-time deals” made it hard to resist clicking “buy now,” even on things people didn’t need.
“If this sounds familiar, my advice is simple, start 2025 by auditing your subscriptions and canceling anything that doesn’t add real value to your life, Mueller said. “For online purchases, I always recommend the 24-hour rule. Give yourself a day to think before buying, and often you’ll realize you don’t need it.”
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Lifestyle Inflation
One of the biggest money leaks Mueller noticed in 2024 was lifestyle inflation.
“People upgraded their phones, leased fancier cars or splurged on designer items because it felt like the ‘next step’ in life.”
She noted that dining out too frequently was another sneaky drain on finances.
“From what I’ve seen, these habits can derail your savings goals without you even realizing it.”
Her advice for 2025 is to set clear financial priorities and stick to them.
“Ask yourself: will upgrading this item or eating out again help me reach my goals, or is it just temporary gratification? Cooking at home more often or delaying upgrades can save hundreds or even thousands over the year, giving you breathing room to focus on building long-term wealth.”
Advice for Performing a Financial Focus Review
So you messed up. Rather than berate yourself for making some money mistakes, it’s time to take action. Below are some steps you can take for making changes in 2025.
Audit Automatic Payments and Subscriptions
Are you paying for something that you are not using? Whether it’s a gym membership or a streaming service, according to Coroso, those dollars are wasted if you are not actually working out or watching TV.
“Many people sign up for subscriptions with a free trial offer, then forget to cancel before the promotional period ends.”
She recommended going through your subscriptions and memberships, and if you haven’t used it within the last three months, find out if you can cancel.
“If you cannot cancel now, unsubscribe so you are not charged again in the new billing period. Do the same with anything that you have on autopay, keeping in mind that some things are billed annually.”
She continued, “Are you still using the product or service? I was recently billed for an annual fee for two services that I no longer use. I called both providers, and they immediately reimbursed my money and canceled the service for me. Don’t be afraid to call and ask!”
Reflect and Review
Additionally to the above, Coroso advised analyzing your 2024 spending habits using your bank or budgeting app reports.
“Was your spending aligned with your values and goals? Did you spend more than you would have liked in certain areas? When do you tend to make these purchases? When you’re tired, hungry, emotional, happy?”
She said to take note of your own patterns and resolve to implement a 24-hour hold on any discretionary purchases in 2025.
Write down the associated cost of any purchases you don’t make, and add them up for a week (or even a month).
“How much have you saved? What could you do with that money that is in alignment with your financial goals?”
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This article originally appeared on GOBankingRates.com: I’m a Financial Expert: 2 Ways You Wasted Money in 2024 That You Can Avoid in 2025
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