It’s easy to take notice when someone subtracts a large amount of money from your bank account. After you purchase a brand new refrigerator, for example, you definitely feel the pain. However, small transactions are harder to catch. It’s not likely that you’d catch $5 or $10 leaving your bank account on a monthly basis. And oftentimes, those are the costs that wreak havoc in you financial life. Keep reading to find out five small costs that might be draining your cashflow.
- Food waste. Americans generally overspend on food. Unfortunately, a lot of this food goes to waste. On average, Americans waste 40% of their food purchases, which equates to $2,000 per year. Meal planning, as well as avoiding buying in bulk, can do wonders for your grocery budget.
- Bank fees. Banks are sneaky, and many have found ways to charge you for just about anything and everything. Overdraft fees are a great example. They can take a toll on your account balance if you aren’t careful. Keep an eye on your spending, and don’t let any unusual fees slide.
- Energy suckers. Energy costs vary throughout the year, but you’ll see a larger difference if you haven’t made any energy-saving efforts at home. During the winter, invest in thermal curtains to keep cold air outside and warm air in. During the summer, close your shades to keep warm air outside and cold air in. Make sure your heat or air conditioning isn’t overworking while you aren’t home. Outdated appliances and incandescent lightbulbs have also been proven to break the bank.
- Memberships and subscriptions. It’s easy to sign up for a subscription or membership on a whim, but it’s not quite as easy to make the effort to cancel when it’s no longer useful. Small fees, such as Spotify, Apple Music, Hulu, and Netflix, add up quickly. Take a minute to audit your memberships (what about that gym you signed up for six months and only visited once?) and subscriptions and get rid of the ones you no longer need.