Wasteful Spending is Hurting Your Bank Account

We never really notice little amounts of money being taken out of our bank account. Weekly, we seem to spend $3 here, $5 there, on small things like items at a gas station, or even a quick lunch. Throughout the course of a month all these little purchases on knick-knacks add up. 

We typically have an idea of about how much money we have in our bank accounts, but we seldom pay attention to each transaction. Your financial ship is sailing full speed ahead, but a little leak may be letting in water to slow you down along the way. Here are some common ways we spend money that slow our ship down, and how to plug that leak.

  1. Bank Fees

Banks are sneaky and they’ll take your money any way they legally can, which is usually through fees. The best way they can is through overdraft foes, and then by issuing paper statements. Sometimes they’ll even charge you a flat fee for not having a certain amount of money in your account. Yes, thats right, they’ll take your money for not having enough money. 

Certain banks charge you to move your money around. Also, some banks make you pay for services you really don’t need. So figure out where you bank is taking your money and do everything you can to keep their hands off it.

  1. Food waste

If you ask any American where they spend a good chunk of their money, you will hear food as some common answers. It’s okay to spend money on food, but there’s also food waste involved, no doubt. Americans have the tendency to buy in bulk, which leads to a bunch of it being wasted. The best thing one can do is meal-plan and resist the urge to buy outside of that plan, unless you are 100% sure it will be eaten.

  1. Energy gluttons

Energy is an expense everyone has, but how much they spend is up to the user. Energy consumption varies throughout the year. Winter months we blast our heater, leave it alone in the spring and fall, and blast the AC in the summer. This isn’t the only reflection of energy used. Items in your house can help keep the heat , or cool air in, like specific energy efficient winds, thermal curtains, etc. Smart lightbulbs also use less energy than traditional bulbs, but those take a couple years of savings to make a difference. 

  1. Subscritpions or memberships

Any subscriptions cost money and they add up over the years. $10-$12 every month isn’t too noticeable, but it’s just enough to slow your ship down during a year. Chances are you aren’t reading those magazines you ordered, or only go to the gym once a week, which isn’t enough to make a difference. Be honest with yourself and decide what is worth keeping and what is not. 

  1. Price creep

This is when you sign up for cable and the cable companies start you out at a low rate, and by the second year they jack up the price. If you aren’t paying attention when you first sign up, chances are they’ll lock you in to those expensive second-year rates. 

Remember, every nickel counts when you are trying to save money and live the lifestyle you want to live. This doesn’t mean you have to be super cheap, but just be smart about your money and know where it is going. The more you can keep from being wastefully spent, the better things will be!

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