Have you ever experienced the joy of adding up all your income, subtracting every expense, and discovering money left over?! If you answered, “Yes,” then you know the joy of growing your wealth with a budget. 

However, you know that budget busters can creep up on you. They are those small, seemingly insignificant purchases that add up quickly.  Here are the top expenses that will ruin your budget: Every. Single. Time.

1. Paying Too Much For Services And Unused Subscriptions

The power of streaming services is that you get to watch what you want on your schedule. Want to watch your fave Rom-Com from your high school days? Fire up Netflix. Want to listen to the latest music? Cue up Spotify. Streaming services are great, but they can add up in a hurry. 

A simple way to cut your expenses is to rotate your streaming services. Watch a show or two on Netflix and cancel. Then sign up for Hulu the next month to watch the next show on your list. Rinse and repeat.

Something to watch out for is the forgotten subscription service. How do you forget you’re paying for a subscription service you don’t use? You sign up for a free trial with a credit card and don’t cancel the service in time. You can go through your credit card or PayPal statements to see what services you are paying for, then log into your account, figure out how to cancel, then end your subscriptions and save.

2. Don’t Let Food Shopping Eat Through Your Cash

Do you know how much you spend each year on food? The amount ranges from $4,000 to $12,245 a year (and growing higher), according to the USDA [source]. Because food consumes a lot of our budget, it only makes sense to save dollars and cents when we shop for groceries. Here are some tips you can start using today:

  • Check the sales, create a list, and stick to it.
  • Don’t shop for groceries while you are hungry, you will shove more food into your cart.
  • Consider using a curbside pickup or grocery delivery service to eliminate impulse buys.
  • Use a cashback shopping app to earn rewards and cash, which will save you money.

3. Impulse Purchases at Checkout

So, you have a budget, and you’re following it. You make your way through the brick-and-mortar store or e-commerce site, purchasing only the items you intended. While getting ready to check out in the grocery store, you thoughtlessly reach for a candy bar or a soda pop and add it to your items. Online, just as you get ready to finalize your order and hit the Pay Now button, you are offered an incredible discount on this other item. Without thinking, you add it to your cart.

These kinds of mindless purchases cost us money. While $2 here and $25 there doesn’t sound like much at the moment, over time they add up. A survey of 2,000 people estimated the average person spends $450 a month on impulse purchases [source]. It’s OK to have fun with spending your money, just be mindful about what makes it into your cart and make sure it is in the budget.

4. Failing To Comparison Shop

Did you ever get that feeling in your stomach when you pick up a new phone, high-def TV, or a new outfit at what looked like a good price … only to find out after you parted ways with your cash that you paid too much? Comparison shopping could have prevented that sinking feeling in your gut. On the one hand, the internet makes it a breeze to compare prices. On the other hand, there are so many retailers that it can be time-consuming, and time is money.

Do you really want to spend an hour of your day to save $10 or $20? For many, the answer is a resounding yes.

5. You Don’t Automate Your Savings

Every morning in an African village, women head out to gather wood so they can make a fire for cooking. As they collect the wood, sometimes just a small twig or branch, they think of an African proverb: Stick by stick makes a bundle. So, it is with savings. If you consistently deposit money into a savings account, over time, you will have a “bundle.”

To avoid the temptation of needlessly blowing money on wants instead of needs, you should automate your savings. The long-term benefit of automatically depositing money is a gradual building of wealth. The short-term benefit is you will not waste that money on stuff you don’t need. Life is easier to navigate when you have money saved if you need it, so put your savings on autopilot.

Related: Ultimate Guide to Saving Money

6. Unchecked Insurance Premiums

Watch every commercial for insurance and you will immediately detect the central theme: Switch to us and save! That’s a powerful message. If you are not checking your insurance rates every year, you will probably end up paying more than necessary.

Insurance companies use complicated formulas when coming up with their auto and home rates, and part of the calculation includes how many claims you have filed. So, the math is simple: If you file a lot of claims your rates will go up (maybe even canceled). If you have several claims, you definitely want to shop your insurance to find better premiums.

7. Avoid Alcohol, Keep Your Cash

Alcohol, and we’re talking about the adult beverage variety not the isopropyl kind, is expensive. If you enjoy a few too many drinks, your budget will be leaking cash. How much? A lot. In fact, our government has an alcohol spending calculator to show you precisely what you spend a month, week, and year [source].

Alcohol you buy at a grocery or liquor store is expensive enough, and you can expect to pay five times as much or more when you decide to enjoy a drink at a restaurant or bar. The true cost of alcohol goes beyond what you paid per drink. If you are out and the alcohol flows a little too freely, then you might end up springing for an Uber, too. If you decide you want to imbibe a little, put it in the budget and drink at home — it will be cheaper and safer.

Up Next: 9 Things to Stop Buying to Save Money

Things to Stop Buying to Save Money

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