When thinking about how to save money, we might focus on big things—like not spending too much on a house or going for broke with a dream vacation. But we might not pay close enough attention to the little ways money leaks out of our everyday budgets. Learning how to plug those money leaks could free up more cash to put toward your financial goals. Here are some sneaky expenses to look out for—and how to reduce or eliminate them.
Fees
It’s time to get proactive with fee-proofing your life. Below are a few areas to look at closely:
Your bank
See what fees your bank charges, like a minimum balance fee or other account management fees. You could opt for a fee-free bank account or take steps to ensure you aren’t doing things that trigger fees, like overdrawing your bank account or using out-of-network ATMs.1
Your credit cards
The average credit card interest rate is almost 23%, according to the Federal Reserve Bank of St. Louis. You can avoid those interest charges and late fees on top of them by paying your balance in full and on time each billing cycle. If that’s not possible, make a plan for paying down your debt so the interest doesn’t keep piling up. Also, check whether you’re getting charged an annual fee—and whether the rewards are worth it. Or you can look for a cash-back credit card with no annual fee. Fidelity has one, and it won’t charge you a foreign transaction fee for purchases abroad either.
Your taxes
Underpaying your taxes could lead to a hefty IRS fee. If you’re self-employed, you might need to beef up your quarterly estimated tax payments. Or you might be able to reduce your tax bill by recalculating your tax withholding. A tax pro can help you sort out the details to avoid penalties in the future.
Food delivery fees
The average person orders delivery 4.5 times per month, according to a survey by US Foods.2 One way to save is to pick up your order instead—you’ll get to skip a tip too. Obvious alert: You can also sidestep delivery fees by meal planning ahead of time and cooking at home.
Financial waste
Trimming financial waste doesn’t mean never splurging. Think of it more as cutting what doesn’t spark joy so you have more money for what does. Here are some expenses you could probably bring down:
Your mobile and internet plans
Check your latest bill and make sure you understand what you’re being charged for—and how much it’s costing you. It might inspire you to switch to a less expensive plan or shop around to get a better deal from another provider. Do the same for insurance carriers and other services.
Convenience spending
This includes things like bottled water on the go when thirst strikes and spur-of-the-moment takeout meals because you’re too hungry to cook. We’ll say it again: Planning ahead can help you dodge these unnecessary costs.
Shipping charges
You likely could send books, educational materials, and other media across the country for lower rates with USPS media mail.
Self-care
At-home facials and DIY manicures and pedicures can be just as uplifting but a lot cheaper than the in-salon kinds. An online tutorial might be enough to teach you how to give yourself haircuts too.
Repairs
A quick online search can find videos that walk you through fixing minor issues in your home yourself. Before calling in a pro, see if the internet can help you rise to the occasion.
Dining out
Try to save pricey cocktails for happy hour when you can get the same drinks for less. If you want to go to a popular but expensive spot, it may be more cost-effective to go during brunch or lunch, instead of dinner. Or aim for restaurants with big portions and split meals with a friend—or just take home a doggie bag for yourself for another day.
Rideshares
As of March 2024, customers of one major rideshare service averaged spending about $100 a month, according to Bloomberg.3 Consider using their carpool feature, waiting a little longer for a cheaper ride, or, if possible, timing your rides to less busy times when prices are lower.
Gas
Of course, you could use public transportation, bike, walk, or carpool with coworkers or friends instead of driving. But you could also time your fill-ups to when gas is likely to be cheaper, generally on Mondays and Tuesdays. If you wait to fill up until your fuel gauge is almost on empty, you might end up pumping gas at a more convenient—and more expensive—gas station. Keep an eye on your gas tank and plan your routes around more affordable stations to spend less on gas. You could clear out your car too—extra weight uses more gas. Well-inflated tires could cut your gas usage as well.
Public transportation
You might not have much control over when you arrive at work and leave, but if you can schedule your commute for off-peak times, your bus or train tickets might cost less. Even if not, your employer might offer a commuter program that subsidizes your costs or at least lets you set aside pre-tax dollars from your paycheck to buy your passes.
Gym memberships
This is another cost your employer might be willing to defray. Also, run the numbers on whether you’d get more bang for your buck by buying fitness equipment to use at home. An upfront purchase of a treadmill or a stationary bike might be more worth it than that monthly gym fee.
Groceries
Food is the most common material found in landfills, according to the US Food & Drug Administration (FDA)—and food waste is like throwing your money in the trash. Plan your meals around what’s on sale, repurpose leftovers, split bulk buys with neighbors, check out loyalty programs, and learn other ways to save on groceries.
Missing savings opportunities
Here are some simple actions that could lead to big savings:
Apply for rebates, freebies, and other savings
A social media company once gave users $300 as part of a privacy settlement for collecting facial recognition data without their consent, but you had to apply for the payout. The same goes for certain rebates and free offers. That may include free credit monitoring after a data breach or replacements for recalled products. Be your own consumer advocate and search for settlements and rebates. Fill out those product registration forms so companies can contact you if necessary.
Check your service providers’ perks
For example, you might be able to score free food delivery if you’re a member of certain online retailers’ programs, or free streaming music if you buy a certain brand of headphones. Review your regular bills, subscriptions, and memberships to see what benefits might be available. That way, you never pay for what could be free.
Curb your impulses
Ever throw a pack of mints or a celebrity magazine into your grocery cart while waiting on the checkout line? Some stores may use this location to hawk pricier goods, from chargers to fancy coffee to cute socks. At airports, you’ll see vending machines for stuff you might have forgotten to pack, like headphones and toothbrushes. Resist the urge to spend on something you hadn’t intended to, likely don’t need, and could get cheaper when convenience doesn’t come at a higher price tag.
Understand your health insurance deductible
Your deductible is the amount you have to spend (not counting your monthly premiums) before your health insurer might kick in cash to help cover health care services. Check your policy for this amount, which typically resets at the end of the policy year. A higher deductible usually translates to a lower premium (and vice versa). Depending on your health care needs and risk tolerance, you might consider switching to a plan with a higher deductible and lower premium.
Read your receipts
Some restaurants automatically add a gratuity onto the bill. If you’re not paying attention, you might inadvertently tip twice. As for grocery and drugstore receipts, they could include coupons, so see if there’s anything useful on that long strip of paper before automatically trashing it.
Check the rotating bonus categories on rewards credit cards
Some rewards credit cards offer bonus categories to earn extra points. For example, you may earn 1% back on all purchases, but from January to March, you might earn 5% back at grocery stores, gas stations, and restaurants. You can use this info to time your purchases and decide which rewards card to use.
Apply for tax deductions and credits
This is where an experienced tax pro can come in handy. They could point you to tax deductions you’re eligible for, which reduce your taxable income. Tax credits, on the other hand, directly reduce your tax bill. Both of these are good for your wallet; seize whatever you’re entitled to.
Check out your local library
Besides books, movies, and music, some libraries lend tools, cookware, outdoor equipment, games, electronics, and musical instruments. You might also have access to printers, scanners, tax forms, museum passes, and more. Check your local branch to see what’s free.