If your wallet seems to empty faster than you can say “impulse buy,” it pays (literally) to be more aware of sneaky, money-sucking habits. You are losing cash without even realizing it, so become more flush and less stressed by avoiding these 15 money traps.
1. Being Seduced by the “Buy Now, Pay Later” Trap
Those “buy now, pay later” options may feel like a blessing when you want something you can’t afford upfront, but trust us, they are a curse in disguise. Before you know it, you’re paying off several things you can’t afford and being hit with interest fees. If you can’t buy it outright, you can’t afford it, so wait until you can.
2. Mindless and Forgotten Subscriptions
That “free trial” you signed up for and forgot to cancel still charges you monthly. Whether it’s a streaming service, a fitness app, or a random subscription box, these monthly fees might seem small but add up fast. Review your bank statement to check which subscriptions you have and cut the ones you don’t use.
3. Not Automating Your Savings
If you don’t know how to save or wait until the end of the month to save whatever’s left over, you’re doing it wrong. Automate a portion of your paycheck directly into a savings account so you don’t have to think about it. You’ll get used to not having the money and will build savings faster and effortlessly.
4. Falling Victim to the Impulse Buy
If you’re one to throw random things into your cart because they’re on sale or look cute, it’s time to rein it in. Those late-night Amazon sprees or random Target runs add up. Make a wish list before shopping and stick to it; your wallet will thank you.
5. Dining Out Like a Celebrity
Grabbing lunch here, ordering Seamless there, and heading out for dinner because you can’t be bothered to cook are convenient, but they’re also expensive and indulgent if money is tight. Start meal prepping, make your lunch, and cook dinner (or buy inexpensive, healthy, pre-prepared meals) at home more often, and watch the savings roll in.
6. Ignoring Small Bank Fees
ATM fees, overdraft charges, and monthly fees for not maintaining a minimum balance might seem small, but they can add up. Review your bank account to determine how much goes into monthly fees and if you’re losing money to fees you could avoid.
7. Your Daily Cup of Joe
We all love our coffee, but hitting the coffee shop every morning for your daily fix is easy: $20–$50 weekly, which could be saved or spent elsewhere. Invest in a good cafe-style coffee maker, make your brew at home, and save the cash into an emergency fund instead.
8. Raw Dogging the Grocery Run
Never shop when you’re hungry, and note: Walking into the grocery store without a list is a recipe for overspending. You’ll buy random stuff on the fly, and it will probably go to waste. Plan your meals—it’s better to micro-shop as you go to avoid wasting food— make a list, and stick to it.
9. Throwing Money Down the Drain on Gym Memberships
This is a classic. You swore you’d go to the gym every week, and now you’re locked into paying for an expensive gym membership you never use. Cancel if you can, or switch to a pay-per-class option. It’s a good idea to buy some equipment and work out at home rather than let that membership deplete your bank account.
10. Investing in Every New Tech Gadget
Tech companies love to convince us we need the latest, greatest gadget, but if your current device works just fine, hold off on upgrading if money is tight. If you’re constantly upgrading to the latest phone, laptop, or smartwatch, you’re spending more money than you have or should, and they’ll be superseded in a month anyway.
11. Allowing Energy Bills to Skyrocket
Leaving the lights on, cranking up the heat or AC, and letting appliances run non-stop can inflate your energy bill to shocking levels. Lower your monthly bill by making a few simple changes. Use energy-efficient light bulbs, turn off appliances when not in use, set your thermostat a bit lower, and save.
12. Buying the Expensive Option
Buying the most expensive or name-brand products is unnecessary. Ask yourself if you need that fancy cereal or laundry detergent or if the Generic or store brands are just as good. The answer is yes, so start comparing prices, and you’ll realize those few extra bucks for the label aren’t always worth it.
13. Taking On Unnecessary Debt
There’s good and bad debt, and knowing the difference is essential. It’s easy to justify putting something on your credit card you’ll pay off later, but debt and interest add up fast. Avoid taking on debt for things you don’t need, and focus on paying off what you owe as quickly as possible.
14. Blowing Cash on Convenience
We’re all members of the convenience generation. Sure, it’s nice to have things done for you, but delivery fees, valet parking, paying extra for next-day shipping, and spending on convenience are slowly draining your bank account. Step back and ask yourself if the convenience is really worth the price and if you are being lazy.
15. Not Tracking Your Spending
This one’s a biggie. Spending mindlessly is easy if you’re not keeping track of where your money’s going. Download a budgeting app and review your bank statements regularly to be more financially conscious. You will be shocked at how much those “little” purchases add up and can back control of your budget.
