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7 Things You’re Paying Too Much For

7 Things You’re Paying Too Much For

If you’re tired of your monthly bank account balance vanishing into oblivion faster than you can say “Pay Day,” take a look at these common expenses many Americans are paying way too much for. You might be able to cut your spending by taking a few simple actions.

Coffee

If you just can’t start the day without your standard quadruple-shot Venti Americano coffee, consider the hefty chunk of change this habit is likely taking out of your pocket. Starbucks and many other coffeehouse franchises are notorious for marking their products up by as much as 300%. Someone who spends $3 or more every day on fancy lattes is way overspending on coffee – you could make your own at home for less than a coffee is something you pay too much money forquarter a day.

Subscriptions

Take a look at your monthly expenses to make sure you know exactly where your money is going. You may be surprised to find that you’re paying for things you don’t use anymore, such as a magazine subscription or a gym membership. You may also be able to cancel other subscriptions in favor of cheaper alternatives. For example, many customers have opted to cancel their expensive cable subscriptions since the rise of online video streaming companies such as Netflix and Hulu.

Loans

A recent study by Credit Sesame reported that a third of Americans are overpaying on loans by as much as $541 a month. That’s more than $30,000 in less than 5 years. If you’ve improved your credit since you first took out a loan for a car, for your home or any other reason, you may be able to refinance and get a much better rate. As a matter of fact, improving your credit score also could help lower your payments on other expenses, such as utilities, rent and insurance.

Insurance

If you’ve become complacent with your insurance company and the rates you’ve been paying for years, you’re probably paying too much. It’s important to shop around every year or so using websites to compare rates and offers from a variety of providers to find the best value available for you. You may also be able to adjust your policy if you’ve had the same coverage limits for several years in addition to finding other smart opportunities to save, such as good-driver and bundle discounts.

Food

How often do you dine in at restaurants or order take-out instead of cooking or packing a meal from home? If the answer is more often than not, you’re spending way too much on food. The $7 you spent on a hamburger meal from a fast food joint could be used instead to buy an entire chicken from a grocery store and create multiple meals for yourself or your family. Even if you only buy food from dollar menus, purchasing staples from a grocery store that can be combined to form a variety of meals is much better for your body and for your wallet than eating out.

Gasoline

According to the Bureau of Labor Statistics, the average American family spends almost $3,000 a year on gasoline alone. If you’re shelling out hundreds of dollars on gasoline every month, you might consider cutting back on road trips and finding alternative modes of transportation such as carpools, public transportation or bicycling. It’s also important to monitor gas prices and fill up when you’re sure you’re getting the best value. Don’t just choose the first station you see when your car is on empty – plan ahead to get the biggest bang for your buck.

Entertainment

It’s easy to quickly burn a hole in your pocket when you go out for a night on the town or even just take the family out to a movie. It’s best to take advantage of cheap or even free entertainment options such as a trip to the park or other community activities, but if you (understandably) need to enjoy an occasional fun night out, just make sure to a plan. Take a limited amount of cash with you to the bars, and eat a big meal before going to the movies so you won’t be tempted to blow $10 or more on an overpriced bucket of popcorn and a small soda at concessions.

The bottom line is that you can improve your bottom line by taking more control over your spending. Choose where you can cut back, and enjoy the extra cash you’ll have in your pockets.

{ 7 comments… add one }
  • Tom January 17, 2013, 7:42 am

    Believe it or not, I think coffee is the biggest culprit for me. A latte in the morning and 2 coffees after that, and I’m at about $10 per day. That’s $300 per month!

    Reply
  • Kim June 16, 2013, 6:40 am

    In these hard economic times and with prices for food rising I had to take a hard look at what I was spending money on. I agree that buying overpriced coffee is a waste of money and I was wasting $20 a week on my daily coffees. We bought a brewer for work and I use a k-cup with my own coffee from home in it. I figure I’ve saved $15 a week on coffee alone!

    We also eat at home everyday, make lunches to bring to work and school, and have cut back on our entertainment expenses by watching movies on Netflix. It really is amazing how much you spend without thinking about it.

    Reply
  • ali-jd5 June 24, 2013, 8:19 pm

    Oy, looks like I’m 7/7. The two I’m working on are coffee and restaurants. I was doing well with coffee for awhile since I bought a coffee pot. Since that broke though, I’m back to my morning Starbucks. Restaurants and take-out might be the hardest for me. I definitely am still learning to cook!

    Reply
  • Cheapskate June 24, 2013, 10:42 pm

    It is amazing just how much people spend on food wastage! While growing up… being Asian in heritage taught me that you can use a lot of parts of a plant or an animal that people would throw out as trash. Fish head, for instance, make for good soup on a cold day. Cook it with tamarind and chili and lots of onions and tomatoes plus some grated ginger and lemon grass…. nothing can beat it. That is one of my comfort foods.

    Reply
  • Kevin June 28, 2013, 7:53 pm

    My big problem seems to be with the TV, phone and internet bundling deal. Seems like the bill is always going up.I just changed companies to try to save a little. Do you think this bundling thing is a deal or a scam? Anyone figure out the cheapest way to go?

    Reply
  • Happyflowerlady June 28, 2013, 9:19 pm

    I think I am doing pretty well on most of these, except it IS nice to have a meal out once or twice a month, even if it is only a hamburger at Burger King, or a milkshake at Sonic. Most of the time, I can make food at home, and buy simple foods like rice and pasta to go with a salad, and just a little meat or cheese to add some protein, and lots of veggies. I just found coffee in the little pouches on sale for buy one/get two free, so I stocked up while they were on sale. Now I can have a quality cup of morning coffee instead of just the cheap stuff that is usually what I buy.
    I hate to change my insurance company, but it does make sense to at least get some quotes before I make a final decision on that.
    I belong to My Points, and they give you rewards for getting quotes, and even for buying things online, so I will go through them for my quote.

    Reply
  • cellphonehippie July 6, 2013, 4:37 pm

    In terms of entertainment, I find Netflix to be great bang for your buck. Instant streaming is only $8 a month and they have an astounding array of TV shows and movies that you can watch. I think a Netflix subscription is definitely worth it and may even eliminate the need for cable altogether, if you want to go that route.

    Reply

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