21 Silly Things You Are Wasting Money On - Life's Little Pleasures and Struggles

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There might be some things or services you spend money on regularly without actually realizing that that’s the money you are wasting. Imagine saving couple of hundred dollars each month for a year, and see what number you come up with. Surprised?

Money is great to have as long as you manage and spend it wisely. Money can buy freedom and options that allow you time and extra cash to spend on meaningful pursuits or things that bring you happiness and long-term pleasure. But most of us don’t manage our money well. And we don’t even realize how we waste it.

More than 8 of 10 Americans admit to wasting money, and in many cases, the amount of wasted money isn’t just a few dollars. Most Americans are wasting thousands of dollars every year, and you are probably one of them.

You may be wasting money in extremely common but often overlooked ways. Here’s a list of 21 things you may be wasting money on:

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1. Bottled water

So many people drink bottled water every day and waste a good amount of money on this. Bottled water can be expensive and when you drink from it regularly, the costs add up. Buy a water filter for your tap and stop wasting your money.

Also, a bottle of water at the gas station can cost $1.50 versus about $.10 if you buy a bottle of water in bulk from Sam’s Club or Costco. Try to minimize the waste of money by planning in advance.

2. Frequently dining out

Average American households spend more than $3,000 annually dining out, with some spending a lot more. You may be dining out more to save your time and energy. But with creative and advanced meal prep, you can cook your meals at home from scratch, and save a lot of money each month. You can dine out, but be aware of how often you dine out and how much you spend. Look for deals or discounts.

Also, by preparing food at home, you can improve your health and save lots of money in the long run.

For inexperienced chefs, or just anyone who would like to try these out, I’ve listed below a few wonderful cookbooks you can use however many times you need to make some delicious meals at home and save money.

3. Food wastes

Many people waste a lot of food they buy, store, or prepare. According to a study by the National Resource Defense Council, the average American family wastes on about $2,200 of food per year. That’s literally throwing money away.

If you are not being careful, possibility is that you are also wasting your money this way. When you go to the grocery store, for example, make a meal plan first and shop with a list to reduce the chances you will overspend and buy foods that have to be tossed away.

4. Cable bills

Wasting money on expensive or premium cable services that you don’t even use much? With all of the streaming service options, it makes a lot of sense to cancel your cable.

In the day and age of Hulu, Amazon Fire stick or Netflix, you can save hundreds of dollars each year that you are otherwise wasting on premium cable bills. Most live TV shows are available online within a day or two of their release. So, you won’t miss anything at all by cancelling your cable service.

5. Unnecessary subscriptions and memberships

Many people pay for subscriptions they don’t need like magazines and newspapers. The same exact articles or publications are available online for free. You can read them right now and you don’t have to pay anything for that. So why are you wasting your hard earned money on that?

Also, if you have a gym membership that goes unused, cancel it and stop wasting money. To avoid wasting money on subscriptions and memberships that no longer provide value, go through your credit card statement to see what you are actually spending. If you see a recurring cost, ask yourself whether you really need that or you would be better off saving the money.

6. Impulse buying

Impulse buying is an unplanned decision to buy a product or service, made just before a purchase. This one is focused on instant gratification. This can destroy your budget because you will spend money without a plan and without thinking. This can result in overspending and not having enough money to pay the bills.

7. Buying things only because they are on sale

A lot of people end up buying a lot of unnecessary stuff because they are on sale. They think they are saving money on those things because they found great sales or price-cuts on those items which they are going to use “sometime in the future”. The truth is – nearly half of the things people buy on sale hoping to use later end up being clutter in their homes which they never use or hardly use.

If it’s not something you truly need, don’t buy it. Instead save the money and let it grow.

Related post: The Real Cost of Clutter in Your Life

8. Premium gas

If you are buying premium gas for a car that does not require it, experts agree that you are most certainly wasting your cash. Because premium fuel costs as much as 25 percent more than regular, the increased performance may not be worth it, AAA said.

Your car runs just fine with regular gas. Only use premium if your car requires it. Today’s engines are designed to protect themselves so even when an owner’s manual recommends premium, the car typically runs fine with regular gas.

9. Buying luxury name brand products

People waste so much money on famous or luxury name brand items, only to impress the wrong crowds. One simple thing many people fail to understand: any car will take you from place ‘A’ to ‘B’; any purse will hold your personal belongings; any pair of sunglasses will protect your eyes from the sun just fine; any cloth will cover your body and keep you warm; and any wrist watch will tell you the exact time you need to know.

If you are paying hefty prices just for the luxury brand names labeled on these products, mainly to impress others, you are wasting your money.

10. Transportation

Transportation is another way most people are wasting their money. Many people buy new cars every few years, or buy bigger vehicles than what they actually need. A brand-new or a bigger car also comes with larger insurance premium.

If you are buying a new car every few years even when your old car is in good condition, you are wasting big money that you could be saving to meet some of your important life goals. Think about this next time you decide to buy a new or more expensive car. Also, consider living closer to your work so that you can save on transportation costs that way as well.

11. Bigger home than you need

How much of your house do you actually use? When you buy or rent a house that’s bigger than you need, you end up wasting lots of money on larger monthly payments, higher maintenance costs, higher utility bills, and lots of unnecessary ‘stuff’ to fill up the extra empty space.

12. ATM fees

ATM fees can add up quickly. Planning in advance will help to reduce or avoid ATM fees. If you know that you will need cash, then plan in advance to withdraw some cash from your bank so you don’t have to waste your money on ATM fees.

13. Late fees

Many people waste money on late fees every month just by being careless and disorganized. And they add up quickly. Late fees range from 15 dollars to even 35 dollars each time.

Just imagine paying a bill late every month and each late payment charged you a fee of $15 or more. Over the year you would have paid $180 or more. You could have saved that money in your sinking funds to pay for some of your financial needs or goals.

14. Extended warranties

When you buy new electronic products or vehicles, you are always offered extended warranties with those. For the most part, there is no need to pay extra for an extended warranty.

There are some products for which you may consider to have an extended warranty like expensive kitchen appliances. But in most cases, you are better off saving your money and taking your chances.

15. Insurance

Insurance is expensive, no matter what kind of insurance you are talking about. Car insurance, health insurance, home insurance, life insurance, etc. most likely eat up a good chunk of your money from your budget.

Don’t get comfortable paying more money than you are supposed to – simply because you are used to it. Make sure you are getting the best deal available in the market. Shop around and find the best rates.

16. Not maintaining your health

Medical costs are simply too expensive, and according to a study by Harvard University, they are also the number one cause of bankruptcy in the United States.

If you don’t take good care of your health or try to maintain your health, you are going to face long-term financial problem. Eat healthy, sleep well, and exercise to maintain your health. Major medical problems will drain your bank accounts and increase your health insurance premiums. Sometimes they won’t even allow you to work and earn money.

17. Prescription drugs

Many people waste their hard-earned money on expensive prescription drugs or medications. They can save a good amount of money buying the generic brands for that. Generic medications could cost 30% to 80% less than their brand name counterparts for essentially the same drug.

All renowned pharmacies have their own generic brands for the popular prescription medications. Buy those to save money.

18. Second-rate entertainment

Second-rate entertainment can be a big money waster. 23.10% of Americans waste money on entertainment. Instead of wasting your money on movies in theater or expensive games, try to find fun things to do that are free or won’t cost you much money.

Our ‘Mother Nature’ offers a lot of entertainment free of charge. Take advantage of that and save money. Go hiking, go bike riding, play outside, build a bonfire with your friends, enjoy watching the sunset with your family, have a picnic in nearby park etc.

19. Unhealthy and bad money-sucking habits

Smoking, drinking, and gambling are some of the worst and unhealthiest habits that suck your money and life both. None of these are good or healthy for you. You are creating long-term financial problems for short-term pleasures.

If you have any of these bad habits, quit that and save your money for better use.

20. Cell phones

Cell phones are expensive. Some people upgrade their phones every year or buy new phones every 2/3 years unnecessarily, which cost them a lot of money. Also, cell phone services can be a budget buster, too. You may be overpaying for your cell phone service as well.

Take time to evaluate your needs, and see if there is a cheaper contract out there. Sometimes by changing your service provider for a better deal can save you hundreds of dollars over the year. There are many new companies popping up with plans under $30.

21. Starbucks coffee

A lot of people spend a good amount of money on Starbucks coffee every single day and it’s not cheap! I understand they love and enjoy their favorite coffee very much, but buying Starbucks every day can get pretty costly. That expenses quickly add up!

If you spend $5 on coffee every morning before going to work, that’s $25 in a week and around $100 in a month. In a year, you’ve spent over $1,200 on coffee, and that doesn’t even include weekends. Instead of wasting that money on something that you can easily make yourself, buy a decent coffee-maker and save big bucks over time.

A lot of coffee machines now have the ability to preset your brew, so you can program it the night before to start brewing your coffee before you even wake up in the morning. With that ease and comfort, you can’t claim it’s too much work!

The Takeaway

As you can see, many of the things you are wasting money on are likely costing you thousands of dollars each year. Now that you know which things you may be wasting money on, try to fix that so you can save the money instead in your retirement fund, emergency fund, or in some other savings account. The money you are frittering away could help achieve your important financial goals and build a more secure future for you and your family.

Want to increase your financial knowledge even more? These 2 (bestselling and top-rated) books have been very helpful and huge game-changers for me as well as millions of other people worldwide in shaping their financial future. I highly recommend checking them out below. (Can’t see them? Please try clearing your cache, or refreshing the page. I apologize for the inconvenience.)