How to Stop Wasting Money on Mindless Spending
“How did I spend so much?!” is a common reaction to a monthly credit card bill. It often leads to the realization that changes are needed. While cutting back may involve big life changes, it can also mean reexamining small, thoughtless expenses. From forgotten subscriptions to impulse buys, many habits drain your wallet. Below, personal finance experts share 16 common mindless spending habits and tips to break them.
1. Buying Things Just Because They’re on Sale
We all love a good sale, but buying something simply because the price is reduced, not because we need it, is a trap. “It was such a great deal I couldn’t pass it up” can cost you a lot of money for unused items, says Jeanette Pavini, author of “The Joy of Saving.” Shopping for bargains on needed items is good, but buying just because it’s a deal ends up costing you.
2. Ordering Food Delivery Through Apps
Services like DoorDash, Uber Eats, and Postmates are convenient, but high fees add up. Chris Browning of the “Popcorn Finance” podcast notes that delivery fees, service fees, and tips increase costs, and restaurants often charge higher prices to cover app fees. He suggests ordering directly from the restaurant by phone or website to save money. Financial adviser Tomeka Lynch Purcell agrees: “Even though UberEats, DoorDash and GrubHub are super convenient, it is definitely not for your bank account.”
3. Engaging in Microtransactions
Downloading a game app can lead to repeated purchases of upgrades and extras through microtransactions, say Margaret Price and Jill Gianola, authors of “Single Women and Money.” These small purchases add up quickly, affecting both children and adults.
4. Not Keeping Track of Subscriptions
Subscription fatigue is real, with many forgetting to cancel free trials. “Keep track of your subscriptions,” advises personal finance coach Pattie Ehsaei. “Every month, review all monthly subscriptions like apps, streaming services, and magazines to ensure you’re not paying for unused ones.”
5. Constantly Updating Your Wardrobe
Fast fashion and influencer hauls encourage buying new clothes every season. Tomeka Lynch Purcell suggests adding a few key pieces rather than an entire new wardrobe. Kara Stevens of The Frugal Feminista notes that poor wardrobe inventory leads to duplicates. “Having a laundry schedule and being organized helps us know what we have.”
6. Grocery Shopping Without a Plan
Going to the store without a list leads to buying more than needed. Talaat and Tai McNeely of His and Her Money say people walk out with unnecessary items. Andrea Woroch, money expert, adds that the average U.S. family throws away $1,600 worth of produce yearly. Meal planning and using frozen produce can reduce waste.
7. Failing to Pay Bills on Time
Procrastination on bills leads to late fees and credit damage. Jeanette Pavini advises paying bills when received or setting calendar reminders. Michelle Young of Ameriprise notes that 35% of people miss a bill due to forgetfulness. Online bill pay can help avoid late fees.
8. Buying Aspirational Clothes
Purchasing workout clothes or dressy items that don’t match your lifestyle wastes money. Marsha Barnes of The Finance Bar says buying more workout clothes than needed is common. Kara Stevens advises buying clothes that fit your actual lifestyle, not an aspirational one. Also, return items that don’t fit.
9. Paying Unnecessary Bank Fees
ATM fees, account fees, and overdraft fees add up. Pattie Ehsaei recommends using your bank’s ATMs, looking for free checking, and tracking spending. Kara Stevens suggests signing up for overdraft protection to avoid extra fees.
10. Letting Your Mood Dictate Your Spending
Emotional spending, or “retail therapy,” can lead to unwise purchases. Kara Stevens advises monitoring triggers like bad days and finding alternative coping mechanisms.
11. Forgetting to Use Gift Cards
Americans waste up to $3 billion in unused gift cards annually. Kara Stevens notes that companies benefit when gift cards go unused, so use them for purchases you already plan to make.
12. Not Making Your Own Lunch or Coffee
Daily coffee and lunch out add up significantly. Michelle Young explains that convenience spending can be reduced by making these items at home, also benefiting the environment by reducing single-use containers.
13. Going on Shopping Sprees
Credit cards and digital payments make it easy to overspend. Jeanette Pavini suggests using cash or debit cards to curb sprees. Margaret Price and Jill Gianola advise against ordering another drink just because companions are.
14. Never Taking Change
Always saying “keep the change” adds up. The McNeelys note that businesses wouldn’t give items for lack of change; similarly, you should ask for your change.
15. Forgetting About Peak Hours
Utility rates are higher during peak hours. Jeanette Pavini recommends adjusting thermostat and running appliances off-peak to lower bills.
16. Tossing Receipts
Not checking receipts can lead to overcharges. Jeanette Pavini advises reviewing digital receipts before deleting them to ensure accuracy.
