Buying a $5 pack of gum at the checkout stand might not break the bank. But a pack of gum every week for a year could end up costing you $260. Let’s take a look at five of the most common small purchases that add up fast and what you can do to minimize their impact on your overall budget.
- Streaming Services: While they range from $6 to more than $20 per month, streaming services can add up fast. These can include Netflix, Hulu, Disney+, Spotify, Crunchyroll, and so many more. According to a recent report by Globe Newswire, the average American household spends $77 a month on these services. That’s over $900 in one year.
WAYS TO SAVE: To maximize the bang for your streaming-service buck, continually evaluate which ones you are using. If you are not using a service, cancel it. It’s easy to restart any of today’s streaming services. - Lunch: Everyone needs lunch, right? However, buying lunch every day can really add up. If you spend just $15 per day, you’ll end up consuming $3,600 a year in takeout. That’s $300 per month!
WAYS TO SAVE: Add that money back to your overall budget by bringing lunch from home. Even if those lunches cost you $5 per day to make, you’ll save $2,400 per year. - Daily Coffee/Bottled Water: Those $5 coffees or bottled waters can add up to $100 a month or $1,200 per year. That assumes you only buy one per day.
WAYS TO SAVE: Sure, getting a specialty coffee now and then might not cost a fortune, but there are ways to save money on your everyday drinks. Instead of going out daily, consider making your coffee at home or buying a reusable water bottle and filling it up at work. Water bottles with built-in filtration systems are another option for fans of crystal-clear beverages. - Delivery Services: Getting $20 in takeout might not seem so bad once in a while, but when you tack on the delivery fee, service charge, and the driver’s tip, you could end up spending $40 on that $20 meal. If you do that just two times per week, you’ll end up spending nearly $2,000 on fees alone in just one year.
WAYS TO SAVE: If you need delivery, look into subscription services that may be less expensive. Or simply pick up your own items and save on the delivery fees and tips. - Impulse Items: The pack of gum mentioned at the beginning of this article is a good example of an impulse item. Sure, it’s just $5 for a pack of gum, a pepperoni stick, or a tin of mints. But those purchases add up over time. If you buy something small at the checkout every time you shop, you could end up spending hundreds every year on things you did not really want or need.
WAYS TO SAVE: Never buy anything that’s not on your shopping list. And try to avoid checkout items.
Boost Your Financial Wellness
More Financial Wellness Matters blogs on topics ranging from financial self-care to protecting your financial health are coming soon. Twice a month, we’ll dig a bit deeper into the relationship between financial health and overall well-being, shedding light on the behaviors and beliefs that drive money relationships. With simple tips and proven insights, we hope to enhance your financial well-being and help you live a healthier, happier life.