20 Little ‘Money Leaks’ That Can Sink Your Budget (2024)

For most of us, budgeting and financial management is a critical work that’s never truly done. And although it’s important to carefully consider the more expensive purchases we make in order to avoid wasting money, it’s easy to forget that the little things we buy day to day can add up in a hurry!

In this post, I’m sharing a list of 20 of those smaller buys that may be eating into your budget. Regardless of your current financial situation, I hope this post inspires you to identify and eliminate unnecessary spending so you can put that money toward something you need (or at least genuinely want!)

Author’s Note: This isn’t meant to be a list of things you should never spend money on, but rather a list of items that are easy to ignore to the point where they can negatively impact your budget. But there’s no harm in occasionally treating yourself to any of these items — “everything in moderation,” as I like to say!

20 Things You Might Be Wasting Your Money On

1. Bottled Water

It is easy to overlook a small amount spent on bottled water everyday, but it adds up! A 16-ounce bottle of water costs about $1.50. Buy a bottle of water five days a week, and you’ll spend $30 a month and $360 a year.

2. Credit Card Interest

If you’re not paying your credit card balance off in full each month, you’re wasting money on interest. Carrying a $1,000 balance on a card with an 18% interest rate will cost you nearly $200 per year.

3. Unused Gym Memberships

Your commitment to working out may have waned, but that won’t stop those monthly membership charges! There are also plenty of exercise options that don’t cost any money at all.

4. Late Fees

If you miss a credit card payment by even a day, you can face a late fee of up to $25 (or more, if you’ve been charged a late fee in the past few months!)

5. Appetizers

Who among us hasn’t chowed down on an appetizer or two while dining out, only to end up feeling full by the time our entree hits the table? (And unfortunately, I’m something of a repeat offender in this regard.) Unless you’re absolutely starving, get either the appetizer or the entree — you’ll get your fill without wasting money on uneaten food.

6. Overdraft Fees

Getting charged an overdraft fee is the financial equivalent of getting kicked while you’re down, isn’t it? Check the state of your accounts regularly — even daily — to make sure you’re not in danger of getting hit with an overdraft fee.

7. Expedited Shipping

Paying a premium for expedited shipping is very rarely necessary, and those costs can be pretty steep! To avoid costly shipping fees, take advantage of free shipping promotions and in-store pickup options.

8. Deal Websites

The discounts available through deal websites like Groupon will only save you money if you actually use whatever it is you’re buying! If there’s a 2-for-1 deal for that new place across town, make sure it’s a place you’re actually interested in going before snagging a deal that could be a waste of your money.

9. Designer Baby Clothes

It’s probably not worth it to spend $20 on a single onesie. That onesie will likely end up covered in stains, or the child will quickly outgrow it anyway!

10. ATM Fees

It’s not just two bucks here or $3 there. It adds up. Fast.

11. Forgotten Movie Rentals

Red Box may only be a buck a night, but rent two and leave them behind the sofa, and that can add up quickly.

12. Unhealthy Habits

Americans burn $44 billion on tobacco and $50 billion on alcohol each year, and that doesn’t begin to take into account the indirect costs related to drinking and smoking. Bottom line: both of these can cost you your health as well as your wealth.

13. Premium Cable Packages

Be honest, you probably don’t watch 90% of the channels that you get with a premium cable package. I know I don’t! Plus, you can get a lot of the same shows on streaming services, which cost about $10 per month compared to ten times that amount for a cable package!

14. Lottery Tickets

Your odds of winning big are somewhere in the neighborhood of 1 in 13 million. With odds like that, the chances of you recouping what you spent on those tickets are slim to none.

15. $8 Coffee Drinks

If you must get your coffee on the go, stick to a gas station or convenience store to lessen the daily blow to your bank account.

16. Tickets & Citations

Speeding and parking illegally is a huge waste of money. Plus, one speeding ticket can raise your insurance rates 10-15%. Do you REALLY save that much time anyway?

17. Not Planning Meals

Without a plan, you risk wasting money at the grocery store or on fast food.

18. Dry Cleaning

Unless the label says “dry clean only,” you can more often than not get away with washing your dress pants, button-up shirts and dresses in cold water. Skip the dryer and hang or lay flat to dry.

19. Magazine Subscriptions

Do you have a large pile of magazines that you’ve been meaning to read? Cancel those subscriptions! You’ll never notice they’re gone. (And if you do, it’s better to buy one issue for $5 when you know you really want to read it.)

20. Premium Gasoline

Many drivers assume using a “premium” gasoline will make their car perform better. That’s not necessarily true! You won’t go faster, get better mileage, or run cleaner using premium fuel. (Some cars may see a minuscule boost in performance, but it wouldn’t make a noticeable difference to the average driver.) Switch to the lower octane options at the pump and see the savings add up.

What’s one thing you do to avoid wasting money?