Money is a resource. It provides us with the means to secure our needs and occasionally, a bit of our wants. But if we’re not careful about where our dollars go, they can slip away faster than we expect.
This potential to ‘waste’ money without noticing is a subtle but powerful drain on our resource.
For many of us, it’s not the big, glaring expenses that drain our wallets (although they can). Sometimes, it’s the small, seemingly insignificant ones that, over time, add up and distract our hard-earned money from its maximum potential.
It’s these subtle money drains that we rarely spend time to evaluate.
So, in case you find it helpful, here are twelve subtle ways you might be wasting money:
1. Overspending on Clothing.
The average American family spends nearly $2,000 per year on clothes.
Try to resist the allure of fast fashion and constant wardrobe updates. Choose quality over quantity.
Better yet, consider a capsule wardrobe. Not only will this save you money, but it will also save you time deciding what to wear each day.
2. Size of Your Home.
Bigger isn’t always better. In fact, there are lots of benefits to owning a smaller home.
Downsizing your home can lead to substantial savings in mortgage payments, property taxes, utilities, and maintenance.
3. Recurring Subscriptions.
These can quickly add up. Do you have magazine subscriptions you never read? Streaming services you rarely use? Apps that automatically renew?
Take a moment to review these and cancel the ones that no longer serve you. It takes only a few clicks on your phone to check for recurring subscriptions that you don’t use.
4. Not Monitoring Utility Usage.
When was the last time you evaluated your home energy use? Maybe every time you get your bill. But let me rephrase the question: When was the last time you tried out less energy use (changing the thermostat or looking at electricity use in your home).
Are you mindful of your energy usage? Do you turn off lights when you leave the room? Could you be more efficient with your heating and cooling? Small changes can lead to big savings over time.
5. Frequent Eating Out.
Eating out is convenient, but it’s often an area where we waste more money than we realize.
Try meal planning, cooking at home, and packing lunches. You’ll be surprised at the savings. The cost saving of eating at home is one of the best financial lessons I ever learned from my parents.
6. Not Using a Library.
Books, magazines, movies, music—your local library has it all.
7. Paying for Unused Memberships.
Gym memberships, magazine subscriptions, monthly boxes, even monthly car wash subscriptions.
If you aren’t fully utilizing these services, or worse yet, if you’ve forgotten you’re still paying for them, it’s time to reevaluate. By cutting back or canceling unused memberships and subscriptions, you could save a significant amount annually.
8. Buying Brand Names.
There are many products where the store brand is just as good (if not better) than the national brand.
Clothes are a great example. Too often, people pay a premium just for the privilege of become a walking billboard.
But this goes for everything from groceries to medication.
9. Not Utilizing Credit Card Rewards.
If you’re going to use a credit card, make sure you’re getting the most out of it.
But remember to pay off the balance each month to avoid costly interest fees.
10. Ignoring Your Health.
An apple a day keeps the doctor away, as they say. And it costs a whole lot less.
Regular exercise, a healthy diet, and routine check-ups can prevent costly medical bills in the future.
11. Wasting Food.
The average American family of four wastes around $1,500 worth of food each year, with Americans discarding close to one-third of all food purchases.
To avoid wasting food, and thus money, consider planning your meals, regularly checking your refrigerator and pantry to use items before they expire, or even simplify your meal routine. Being more conscious about our food consumption, we can find another avenue for substantial savings.
12. Not Investing in High-Quality Items.
Sometimes, the cheapest option isn’t the most cost-effective. Investing in high-quality items can save money in the long run as they tend to last longer, reducing the need for replacements.
In fact, that’s one of the most surprising benefits of minimalism—the less you own, the higher quality items you can own.
These small adjustments can make a huge difference in your financial health over time.
And by considering where your money goes, you can make more intentional decisions that align with your values, and find yourself with more financial freedom than you thought possible.
Melody H says
I think this article may need to get updated about housing. With interest rates around 8%, it doesn’t make much sense to downsize if you are locked in at a low interest rate for your current home.
Sheri says
This is my take on the suggestion. Of course if you’re locked into a low rate the smart thing to do is put more money towards your principal, pay it off.
joshua becker says
Very true. That one certainly depends on a number of factors.
Teri says
Good idea about subscriptions. I used a free trial for a streaming service, and forgot to cancel. After reading this post, it reminded me… I just logged in and canceled it. Thank you!
Amy Pemberton says
Regarding #6 – and I say this as a regular library patron and someone with a library informatics degree – the library has a lot. You should support your local library. But it doesn’t have everything. And it does have a learning curve – do you know how to put something on reserve? Request an Inter-Library Loan? Use the catalog? And there are certain things the library is never going to get – resources are limited and some things, such as streaming shows that never go on DVD, will never be available. So, yes, patronize the local library, but please, minimalists, don’t oversell it, and don’t feel like you are not a “real minimalist” because your reading habits don’t overlap with the local library collection.
Also, every so often in minimalist circles I hear someone say something to the effect: “You can minimize your book collection by donating it to the library. That way, when you want to read your books you can just check them out.” No! If you donate your books to the library they are under no obligation to add them to their collection. They might, but in my experience most won’t. And even if they do that’s no guarantee that they might not be purged at a later date.
Sunshine says
I agree about the library and books. Some keep them, but ours sells all donations. Before donating, I check to see if the library has it in case I want to check it out again. My children keep their most beloved books.
Our library is able to get movies and shows made for Netflix as long as we send them a direct link to it, and of course we have to wait for it to become available.
Youtube also offers free movies (search for no ads) and many more with ads.
Betsy says
What a great posting! I especially appreciate everyone’s hints. My husband and I downsized to 900 sq. ft, don’t carry credit card debt, rarely eat out etc. i just need to find a way to STOP buying paper crafting supplies. I’m overwhelmed by what I have and donate to local crafting charities but when new items come out I start buying again. It’s my only addiction.
Michele Bares says
I’m in the same boat with craft supplies. Everything is soooo cool and pretty! I try to remember to shop in my own closet but I love the new things.
Sunshine says
I understand about arts & crafts items. It’s easier to realize I can enjoy getting more when I need them…just enough for a project at a time. It is so much less overwhelming than feeling like I ought to use it all up!
Tami W says
I went with Verizon prepaid plan and as a loyal customer I get discounts every few months. My cell phone bill went from $55/month down to $25.
Sunshine says
Wow! We use Mint prepaid $15 a month but limited data (5), after that the service slows. I am looking for an even cheaper plan for just talk and text (maybe Trello?).
Barbara says
When things shut down during the pandemic we ate all our meals at home, the outdoors became our entertainment and exercise and the only shopping we did was for groceries and gas. It was a real eye opener. We saved $1,000 per month! I even learned to cook our favorite restaurant meals so we didn’t miss them. The spending creeps up on you and you don’t even realize it. We have to work at it now but we are more aware of our spending these days.
Mike says
Went to an initial consultation with a bankruptcy attorney and he had us fill out a questionnaire about our income and expenses. I put in the cost of my wife’s cigarette habit. She immediately threatened divorce if I didn’t remove that completely, not just trim the amount down. Can’t make positive changes if you can’t handle reality.
Kimberly says
About 15 years ago my husband and I were sitting with a financial advisor trying to figure out how to invest more for retirement. It seemed like there was no way to invest as much as we wanted. In that office, it clicked, let’s cut the cord and cancel any subscription possible and put that in retirement. Much better feeling more prepared vs tv. For Christmas, we pay upfront for certain streaming subscriptions.
Kymm Cothren says
I just did this with subscriptions to streaming services yesterday and saved $85 (a month). I had 2 subscriptions to the same service and ones that I signed up for 7-day free trials so I could watch one show (series) but forgot about.
Lisset C says
Wow. These are good ones. I’m trying some of these. Been slowly eliminating subscriptions. Practically no eating out for a while. I’m enjoying the benefits of a smaller home. Thanks for the encouragement!