No one wants to squander their hard-earned cash, but unfortunately, many of us do it without even realizing it. But what are the biggest money wasters, and how to give them the go-by? Keep reading to find out.
Unused Gym Memberships
We’ve all been there. You sign up for a gym membership with the intention of getting that beach body, but then everyday errands get in the way. Consequently, you find yourself going less and less often. In fact, the latest stats suggest that 16.34% of people visit gyms once per week.
Moreover, Americans spend a whopping $397 million on unused gym memberships every year.
So, if you’re not using a membership that you’re paying for, cancel it. To this end, Peloton is a waste of money if you don’t use it regularly.
Cell Phone Plans
Cell phone plans can be expensive, especially if you have a family. The typical monthly cell phone bill will cost you $127.37. That’s $1,528 per year.
If you’re looking to save money, consider switching to a prepaid cell phone plan. For example, Mint Mobile’s post-paid plan costs between $15 and $30 per month.
This way you’ll still have access to all the same features, but you’ll save a lot of money on your monthly bill.
Big Weddings
Big weddings are a waste of money, especially if we know that the average wedding cost is about $24,300.
That said, there are plenty of ways to save money on your big day, so don’t feel like you have to spend a lot just because it’s a wedding. You can have a beautiful and memorable wedding without breaking the bank.
For example, avoid booking the reception on Saturday since it’s one of the most popular and most expensive days of the week for weddings. You can also consider an off-season wedding (between November and March).
Eating Out
If you don’t think eating out is a waste of money, consider the following statement: Americans eat out 5.9 times per week on average, spending about $3,500 per year. That’s close to $300 per month! As you can see, while eating out is convenient, it’s also expensive.
Luxury Vehicles
A new car is a big purchase, and it can be tempting to buy the fanciest ride at the moment. But unless you absolutely need a luxury car, it’s probably not the best use of your money. Even if it were Lamborghini Huracan, one of the most affordable Lambhorgninis.
Expensive cars are a waste of money not only because they cost a fortune, but also because they come with higher insurance premiums and maintenance costs. For example, 6-month premium insurance for a Maserati Quattroporte costs $2,512.
If you can get by with a less expensive vehicle, you’ll save yourself a lot of money in the long run. And if you can get by without any car, even better.
Expensive Tech & Gadgets
People love wasting money on the latest gadgets. For example, in 2021 alone, Americans managed to spend $487 billion on tech. $73 billion went on smartphones only.
While the latest iPhone and Apple Watch may look tempting, do you really need them? In most cases, the answer is no.
Unless you have a specific reason for wanting the latest and greatest tech, it’s probably not worth the money. What is more, you can wait for the most convenient time of the year to purchase TV or other brown goods.
Extended Warranties
An extended warranty is maybe the biggest waste of money. Why? Mainly because most items you purchase come with a manufacturer’s warranty. Furthermore, even if you don’t utilize the product, you’ll have to pay for the warranty.
So if you’re tight on budget, extended warranties are something you can definitely do without.
Unnecessary Insurance
We all want to be responsible and insure ourselves and our belongings, but sometimes we end up overpaying for unnecessary coverage.
For example, if you have a credit with built-in fraud protection, you probably don’t need additional identity theft insurance.
How about Medicare? Is supplemental Medicare insurance a waste of money? The main purpose of Medicare supplement plans is to cover services not covered by original Medicare. Traveling outside the United States is an example of such a service. Therefore, Medicare supplement plans are not a waste of your cash.
ATM & Transaction Fees
ATM and transaction fees can add up, so try to avoid them if you can. If you need cash, withdraw it from your bank’s ATM. And if you’re making a purchase, use your debit card instead of credit to bypass transaction fees.
ATM transaction fees can be as high as $5.00 and as low as $2.50 per transaction.
Refinancing
Homeowners have often wasted money on refinancing their homes to get a lower interest rate. While this can save you money, it can also cost you more in the long run if you do it too often.
Every time you refinance, you have to pay closing costs (2–5% of the loan amount), which for a single-family home translates to about $6,800. So unless you’re going to stay in your home for a long time, refinancing might not be worth it.
Conclusion
While most of us would like to think we’re savvy with our Benjamins, the truth is that we all waste money on things we don’t need. From unnecessary insurance to buying the latest gadgets, there are a lot of ways to waste your hard-earned cash.
Now that you know the biggest wasters, you can avoid them and save yourself a lot of money. Just remember, it’s not just about spending less but about spending wisely.
FAQs
What are Americans wasting money on?
Americans are mostly wasting their cash on:
- paying excessive fees
- paying unnecessary interest
- impulse buying
- repeated purchases
- failing to return unneeded items after they bought them
- electricity and gas
- purchasing luxurious products
- overpaying for digital services
- buying branded products
What is the biggest waste of money in history?
This will probably be the period of Tulip Mania. the contract prices for tulip bulbs in the Netherlands reached extraordinarily high levels in 1634 only to plummet hard in 1637. As tulips cannot be compared to valuable assets such as gold or money, investing in them long-term was not the wisest idea since the real value emerged in time. Tulip mania is generally considered to have been the first recorded speculative bubble.
In other words, the cost of a single bulb during the mania was enough to purchase one of Amsterdam’s finest houses.
What things are a waste of money?
It really depends on the person. There are all sorts of things that people spend money on that others may view as wasteful.
For example, besides paying for extended warranties, buying expensive tech, paying for unnecessary insurance, and eating out, some of the biggest money wasters are expensive vehicles and big weddings.
