Do you ever look at your bank account and wonder where all your money goes? Sure, some of it pays for necessities like living and transportation expenses, but how much of your hard-earned cash goes toward nonessential purchases? 

In the moment, those unnecessary purchases may seem like just a few dollars here and there, but at the end of the month, they can add up to some serious cash. That’s money you could be putting into savings or investing. 

If your monthly budget isn’t as healthy as you want it to be, what are you wasting money on that could be put to better use? If your money is going towards any of these items, you may want to rethink your spending habits.

1. Bottled Water 

Bottled water is one of those needless expenses that can easily be eliminated from your monthly budget. All you have to do is buy a refillable bottle and get water from your tap at home. If you don’t like the taste of tap water, a filter should help. 

Not only do you save money, but you’re also being environmentally conscious by creating less trash. Another plus to having your own water bottle is that you can buy more than one to match your outfit for the day. 

2. Brand-Name Prescriptions  

Generally speaking, if you’re prescribed a medication, the generic brand is just as effective as the name brand. The only difference is the price tag. Generic drugs may look different from their name-brand equivalents, but they’re otherwise the same. 

Case in point: a 30-day supply of a name-brand drug may cost $600, while its generic equivalent costs $90. That’s an astounding $510 difference. Would having that extra money in your pocket boost your budget? Absolutely!

3. Cable Television 

USAmericans have been cutting the cord for more than a decade, and if you’ve ever had to pay for cable television service, you know exactly why that is. Cable has gotten too expensive, offering hundreds of channels, many of which you’ll never watch, for a considerable amount of money.

Instead of paying cable TV’s high rates, opt for a streaming service that offers live television, including local channels. Many of these platforms offer rates that are far less than cable. It’s worth your time to compare services to get the best deal. 

4. Coffee 

There’s nothing like starting your day with a cup of hot (or iced) coffee. It’s incredibly convenient to stop by a coffee shop on the way to work, but those daily trips are costly over time. If you buy a $5 cup of coffee five days a week, that’s at least $100 a month.

For that kind of money, you can buy a nice coffeemaker, some good quality ground or whole coffee beans, and brew your java at home. Put the money you save from your daily coffee into a bank account and watch how quickly it grows. 

5. Convenience Store Items

Shopping at convenience stores is fine in a pinch, especially when your regular grocery or big box store is closed. You do pay a high premium for the ability to shop at a store that is open 24 hours a day, seven days a week, 365 days a year. 

An inexpensive item that you buy at your local grocery store likely has a substantial markup at a convenience store – at a cost that’s probably two or three times as much. For the sake of your budget, keep convenience store shopping to a minimum.

6. Extended Warranties

When you buy a big ticket or electronic item, retailers frequently offer extended warranties that can cost from a few to hundreds of dollars. You should consider buying them on a case-by-case basis. Most items are usually covered under a manufacturer’s warranty, and that should suffice. 

Some items, like laptop and desktop computers, and even mobile devices like cell phones and tablets may need the extra coverage, but you’ll have to decide if the extra cost is worth it. Usually, it isn’t. 

7. Fast Fashion

The appeal of fast fashion is that you can build up a wardrobe of trendy looks for a very low price. Its downsides are numerous. They’re cheaply made, not durable, and will be out of style rather quickly. This makes fast fashion bad for the environment. 

Instead of having a closet full of these temporary clothes, opt for spending a little extra money on quality classic wardrobe basics that will never go out of style. You’ll save a lot of money in the long run while looking your best. 

8. Fast Food

If you have to choose between cooking at home and having to wash a pile of dishes or picking up an already-made meal from a fast food joint, you’d probably opt for the ease and time-saving quality of fast food.

There’s no disputing that fast food tastes good, but it’s getting more expensive, is unhealthy, and can drain your wallet if you buy it more than once in a while. Home-cooked meals are healthier, cheaper, and easier on your budget. 

9. High-Octane Fuel

Gasoline prices are high enough. Why make your fill-ups more painful by purchasing high-octane fuel when you don’t have to? Very few cars, such as luxury and high-performance models, require high-octane gasoline. Most non-luxury cars manage fine on regular unleaded gas. 

You can certainly use high-octane gasoline in a family vehicle to get some extra horsepower, but it’s probably not enough for you to notice. If your vehicle isn’t a luxury or high-performance model, save yourself the pain at the pump, and use regular unleaded. 

10. Purchased Lunches

Going out to lunch from time to time isn’t going to cause considerable damage to your budget. If you’re going out to lunch several days a week, that can be a considerable expense. There are a couple of different solutions to remedy this.

Packing leftovers from the previous night’s dinner is pretty easy to do. Just make sure you have good quality, leakproof containers. If cooking isn’t your strong suit, there are healthy frozen and shelf-stable meal options – just check the sodium count. 

11. Overspending on Groceries 

Shopping for groceries is a must, but that doesn’t mean you have to go broke to eat well. Clipping coupons can be a bit of a chore, but the savings make it worthwhile. Shopping at stores offering double coupons is a budget-friendly move.

Instead of shopping at the regular grocery chain store, shopping at a big box retailer with a grocery section is generally cheaper. Another option is to shop at grocery outlets, which sell items at a deep discount that are still safe to eat but have damaged packaging. 

12. Soda

Soda is a refreshing beverage in a can, a bottle, or from the fountain. But it’s loaded with sweeteners and additives and is expensive per serving. Whether you buy a single container or a multipack, the cost adds up, especially if you’re a frequent drinker of sodas.

Naturally, tap water is a cheaper, healthier choice. But if you’re not ready to give up sodas altogether, there are several home soda makers available to choose from. The best part of making soda at home is you can customize the flavors without all of the additives of commercial sodas. 

13. Unused and Underused Gym Memberships

How many of us have made the New Year’s resolution to get fit and join a gym? More often than we want to admit, those gym memberships frequently go unused or underused. Those monthly or annual fees are going to waste if you’re not working out. 

Instead of signing up for a paid membership that you hardly use or don’t use at all, check out any of the free online fitness classes and free apps that help you get fit and monitor your progress. You can get in shape and save money, too. 

14. Unused and Duplicate Digital Subscriptions

Many digital platforms offer monthly subscriptions for music, movies, books, even clothes, shoes, and accessories. These services are easy to sign up for, but it’s also easy to get so busy that you rarely use them, if at all. 

In other instances, you may have unintentionally signed up for more than one subscription to a service, such as having two video streaming accounts from the same company. There are budgeting apps that help you identify your subscriptions so you can manage them better. 

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