Home > Personal Finance > 6 Things You’re Spending Too Much Money On

Comments 0 Comments

No matter how tight our budgets or how stringent we think we are with our spending, it can seem like our money just evaporates. Instead of cutting out whole aspects of your life, it can be a good idea to consider specific things you consistently overspend on and try to cut back or find cheaper alternatives. Check below for some of the most common stuff many of us spend too much money on.

1. Banking

This is one is easy to forget about. You choose a bank or credit union and stay put for years, decades or, well, forever. But there may be options out there for you that will charge fewer fees and/or pay more interest. It can be a good idea to do your research to choose the right bank for your current needs that keeps maintenance, ATM, minimum balance and inactivity fees low. It may be time to consider other options or challenge your current financial institution to give you a better deal.

2. Water

Buying bottled water might be convenient, but it hurts the environment — and your pocket. Even buying just five $1 bottles a week adds up to roughly $300 a year for a beverage you could be getting for (almost) free. It can be a good idea to switch to a filtered water pitcher and reusable bottle. Your wallet — and Mother Earth — will thank you.

3. Insurance

Having insurance policies in place is important, but if you are not careful about picking just the right one for you, your finances can suffer. There is a good chance you may be paying for insurance coverage or warranty protection you don’t really need, so it’s important to review all of your policies carefully and see what is truly worth the cost.

4. Medication

If you are under the weather or suffering from a long-term health condition, you are likely willing to spend almost anything to get better. But, it could be costing you more than you need to spend. If you regularly buy prescription and over-the-counter drugs, it’s a good idea to consider forgoing the name brand and finding a cheaper generic option with the same active ingredients and strength. (Of course, always check with your doctor before making a change like this.)

5. Cable

A premium cable or satellite package can run hundreds of dollars a month, and even the basic option is often north of $50 a month. If you know the shows you like and can find them using cheaper streaming services like Netflix, Amazon Prime or Hulu Plus, you may find yourself with extra cash for something else in your life.

6. Your Debt

The lifetime cost of debt is staggering. While you may not be able to avoid debt entirely throughout your life, you can help reduce its impact on your wallet by making sure you maintain good credit scores so you can qualify for the best interest rates when you do have to borrow money. You can get your credit scores for free every month on Credit.com to see where you stand.

Whether these examples apply or not, it’s a good idea to review your personal expenses. Finding the areas where you are habitually spending unnecessarily can make a big difference to your bottom line.

More Money-Saving Reads:

Image: iStock

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team