5 Ways You Might Not Realize You’re Wasting Money
Written by
Kerra Bolton
Edited by
Cory Dudak
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It’s easy to overlook the small expenses that quietly chip away at consumer budgets. While they may not seem significant on their own, habits like choosing brand-name items, feel-good spending and buying at the wrong time can add up quickly.
Here are five ways you might not realize you’re wasting your money.
Buying Brand Name Products
One of the most common culprits is paying extra for brand-name products when generic versions offer the same quality at a fraction of the price.
“It’s easy to get into the habit of buying a brand name you see frequently, and that you’ve bought for years,” said Austin Kilgore, analyst with the Achieve Center for Consumer Insights. “However, store-brand items at the grocery store can easily cost 40% less than their brand-name counterparts.”
Kilgore went on to explain: “For example, a couple that spends $200 a month on name-brand groceries could save $80 every month.”
Overlooking Healthcare Savings
Many people focus on health insurance premiums, yet overlook the complete cost of care.
“Find discounts on medications,” Kilgore said. “If you need a common drug, a discount store may offer it for just a few dollars a month. Some people can save by ordering medications by mail or in volume. Your physician may have suggestions.”
Kilgore continued, noting that some manufacturers offer coupons online for particularly expensive drugs. “In some cases, the coupon can cut the cost of a prescription by a few hundred dollars,” he said.
Buying at the Wrong Time
Purchasing items out of season or before major sales can result in paying more for the same product.
“When you shop can impact how much you spend on certain items,” said Andrea Woroch, a consumer and money-saving expert. “For instance, always shop at the end of the season for which a clothing item was designed to get up to 75% off the retail price.” She went on to explain that winter apparel is a better purchase when retailers clear out inventory as spring and summer approach.
Woroch also said it’s wise to wait until popular sales events such as Amazon Prime Day in mid-July or Black Friday to buy electronics. “You can even score big savings on household appliances during long holiday weekends like Memorial Day,” she pointed out. “May is Maytag month, during which you save hundreds off select Maytag appliances from a variety of retailers that sell their models.”
Feel-Good Spending
Eco-conscious spending has become increasingly popular, but it’s easy to overpay for items that offer minimal environmental benefits.
“One money sink I see all the time is the ‘ethical upgrade’ mindset,” said Chris Burdick, co-founder and chief product officer at FairKiwi. “People feel good swapping everyday items for sustainable versions like bamboo utensils, reusable cotton rounds, and high-end organic snacks, but often end up buying more than they actually need.”
Burdick explained, “Ironically, this eco-conscious consumption can turn into its own form of waste. I’ve seen people toss perfectly good items just to replace them with ‘greener’ alternatives, not realizing that keeping what they already own is often more sustainable and budget-friendly.”
In addition, spending money to feel good could mask habitual spending. “The intention is ethical, but the execution can quietly drain your wallet and damage the planet,” Burdick noted.
Leaving Money on the Mat
Paying for a gym membership might feel like an investment in one’s health, but if the membership goes unused, it’s money that could be better used elsewhere.
“During the pandemic, many people discovered they could exercise outdoors or in their homes with online or DVD workout programs,” Kilgore said. “Since then, many have rejoined or joined new places to work out. If you stop and think about whether some of your pandemic-era routines worked, you might be able to save up to hundreds of dollars every month.”
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