It’s easy to overlook your spending habits as you move through your life, but some of them can be extremely detrimental to your financial health. Here are eight stealthy spending habits with tips to curb them so you can save more.
Subscription Overload
Subscriptions, from streaming services to gym memberships, can be a great way to access entertainment and services. But it can be easy to forget about subscriptions you stopped using or simply don’t need anymore. Regularly review your subscriptions and cancel those you’re not actively using.
Not Comparing Prices
Whether it’s groceries, insurance, or big-ticket items, not comparing prices can make you pay too much. Many accept the first price they find and don’t bother looking for something cheaper. But it can be seriously worth it to compare different prices from different retailers or service providers — especially if it’s an expensive item.
Overusing Credit Cards
Credit cards can be convenient and even reward you for using them, but overreliance on them can quickly lead you to overspend. Swiping a card makes it easy to forget the psychological effect of using cash, making it easier to rack up debt. Limit your credit card usage to emergencies or planned purchases only.
Falling for the “Buy Now, Pay Later” Trap
The popularity of ‘buy now, pay later’ services can cause overspending because it encourages consumers to make purchases without immediate financial consequences. This can lead to a rising debt that makes it hard to bring under control. Check your budget before using these services and make sure you can meet the payments long-term.
Overlooking Routine Bill Check-Ups
Many people set up automatic payments for bills and forget about them, leading to potential overcharges or missed opportunities for lower rates. This can be especially true for utilities, insurance, and subscription services. Check your bills regularly to make sure you’re not being overcharged. If you find better deals, look to negotiate lower rates or switch providers.
Mindless Dining Out
Dining out is easy and often feels like an indulgence, but those little excursions to coffee shops, fast food places, or restaurants can really add up. A quick lunch here, a coffee there, and before you know it, you’ve eaten into your entire monthly budget and didn’t even realize it. Prevent this with meal prep and stick to a monthly budget to keep spending in check.
Succumbing to Impulse Purchases
Impulse buying can ruin your budget. Whether it’s a shiny new gadget, a cute outfit, or even groceries you didn’t mean to buy, these spur-of-the-moment purchases can make a dent in your financial goals. Institute a 24-hour rule on non-essential purchases to give yourself a moment to figure out if the item is really worth it to you.
Buying in Bulk (When You Don’t Need To)
Buying in bulk can save you money on some products, but it can also contribute to waste if you buy things you won’t use before they go bad. This is especially important for perishable products. Buy in bulk only for items you know you will use regularly and that have a long shelf life. If you’re not sure, buy a small amount or buy in bulk with a friend or family member to reduce waste.
