Plugging budget holes.
We often spend money on the same items over and over again without even thinking about it: For some of us, it might be cab rides or water bottles; for others, happy hours and shoes. Before we figure out how to stop overspending, we have to become more aware of where our money is going. Here are 10 common money leaks to look out for and avoid:
Getting from point A to point B
Traveling from home to work or getting downtown for a night out can be expensive, whether you drive, use Uber or take cabs. Try to stick with public transportation instead. As long as you give yourself enough time for some additional walking or waiting for the bus, it can be a great, frugal option.
Selecting expensive brands
If you’re drawn to certain brand names that come with high price tags, then it might be time to rethink that decision. Prescription drugs, face cream, shampoo and more can be just as effective in generic form. Do some quick research by comparing ingredient labels before making your final decision — it might save you some serious dough.
Your favorite shows
If you’re still paying $100 or more each month for your cable package, then you might want to consider cutting the cord. That’s because there’s been an outpouring of cheaper alternatives, from Netflix to Hulu to other digital streaming options. If there are specific shows you enjoy watching, look for the various ways you can access them.
Add-ons in the grocery line
Stores stick easy-to-grab items near the checkout aisle for a reason, and it can be hard to resist that bite-size piece of candy or gum as you near the register. But chances are you don’t really need those items, and they can add a lot to your final price. Distract yourself by glancing at the magazine covers without picking any up for purchase.
Bank fees
If you’re still using a bank that doesn’t have a lot of ATMs convenient to work or home, and you end up paying for fees just to take out money, then it’s probably time to shop for a new bank. Sticking with in-network ATMs, withdrawing money directly from the bank or getting cash out at the grocery store checkout can also help you avoid those fees.
Expensive ways to spend your free time
If you love golf or crafting, then you are probably well aware of how hobbies can eat into your budget. Instead of spending time on activities that require you to pay for access to greens or to constantly replenish your supply of acrylic paint, consider a less expensive hobby instead, like going for long walks.
Heating and cooling bills
If you have drafty windows or an attic that lacks proper insulation, then you’re probably overpaying for heating bills in the winter and cooling bills in the summer. Check your home for air leaks so you can seal up the cracks or install more insulation; that short-term investment will save you money in the long run.
Phone bills
Take a close look at your most recent phone bill, and check for any tacked-on fees, such as overage fees or data plans that you don’t need. If possible, switch to a lower-cost plan or even a cheaper service provider. Cellphone service is a competitive market with lots of options.
Auto insurance premiums
While you certainly want to make sure you have enough auto insurance to protect yourself in an accident, you might find that your rates have gone up every year. In that case, it’s time to shop around for a better deal. If you have a good history with no accidents, then you’re well-positioned to negotiate your way to lower premiums, too. (A similar principle applies to homeowners insurance — requesting new quotes every few years can help lower your rates.)
Food
If you’re not a big cooker, then you might be overspending on takeout meals. Planning your meals in advance and doing your grocery shopping accordingly can help reduce the temptation to order $40 worth of takeout a few times a week.
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10 Money Leaks to Shut Down Now originally appeared on usnews.com
