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When managing your finances, it can become all too easy to get trapped in the cycle of tweaking every section of your budget in an attempt to save more money and reach your financial goals sooner.
You may also seek out ways to increase your income, by devoting all of your spare time to a second part-time job or endless side hustles.
However, another effective way to save money is by identifying the expenditures that you are (maybe unknowingly) wasting money on - and cutting back where needed!
Read on to learn the top five things you might be wasting money on, and may want to consider cutting out of your budget:
1) Unused Subscriptions
Did you know that over the last year alone, spending on unused subscriptions has doubled and cost consumers over half a billion pounds?!
To avoid this, make it a habit to audit your subscriptions every couple of months and identify those subscriptions you never or rarely use. And if you’re opting in for a free trial of a product or service, make sure to set a reminder on your phone to cancel before the free period ends and you’re accidentally charged.
For those subscriptions that you never use - cancel! (And yes, that includes the gym you keep promising you'll go to!). For those you rarely use, be honest with yourself - can you live without it? If yes, cancel. If not, find ways to cut the cost. Try to negotiate by asking for a better deal, or see if you can split the costs with friends or family (e.g. with Spotify’s family plan, which often works out cheaper overall than each paying for an individual membership).
2) Designer/Named Brands
We're all guilty of buying something at one point in our lives to be on 'trend'. Whether that be the latest trainers or phone, we inevitably regret spending so much money on that ‘must-have’ item from TikTok that only becomes out of trend a few months down the line.
Be smart with your spending, and find cheaper alternatives to the 'trends' and your favourite brands.
And we’re not just talking about ditching those designer labels in favour of high street brands: you should also start swapping branded food items with supermarket’s own when you can. They can be just as good in quality and taste - whilst also saving you money!
3) Dining Out
Eating out when you already have food at home is possibly one of the biggest expenses you could be wasting money on.
We get it - it’s convenient, saves you the cooking prep and washing up, and often much tastier than any meals you make at home. But, having this become a habit, or caving in to takeaways several nights per week can really make a dent in your wallet and hinder your savings goals.
One way to limit this is by planning your meals at the start of the week and preparing them in advance if you have the time. This will prevent you from having to think about what to cook for dinner each night and you’ll be much less tempted to eat out or order in. Try to limit restaurant meals or takeaways to one day/night per week (this goes for ordering coffee too when you could easily make one at home!), and when you go shopping for groceries, make sure to bring a list and always avoid shopping on an empty stomach.
4) Bank/Credit Card Fees
Many of us unknowingly pay a lot of money each year in bank fees or credit card fees. In the UK alone, 1 in 5 adults go into their overdraft each month - that’s nearly 13 million people who have been overdrawn in the last 12 months. And at the end of April 2024, consumer credit lending had increased by £3.7billion!
The best way to avoid incurring these fees is by making sure you budget your money each month to avoid going into an unarranged overdraft and paying off your credit card in full to avoid high-interest fees.
Alternatively, you can also try an ImageNPay Prepaid Card to help you stay in control of your spending. With a prepaid card, you can only spend what you have topped up onto the card - so no surprise interest fees or overdraft fees as you can’t go into debt.
5) Plastics/Non-reusables
As a sustainable payment app with a mission to make plastic cards a thing of the past, we may be biased here: but buying eco-friendly and sustainable products can actually end up saving you money in the long run!
Reusable products, like reusable coffee cups and water bottles, usually have a longer life span, meaning you don't have to keep re-purchasing items (and spending money) as frequently. Why not switch to a soap bar, stop buying bottled water, or switch to using beeswax wraps instead of clingfilm? Reusables not only save plastic waste but also save you from wasting money on single-use products.
By being conscious of wasting your money on these five things you can save yourself money and ensure your budget is as effective as it can be!
What else would you add to our list? Join the conversation over on Instagram and follow us for more budgeting tips!
Ready to take the next step in reaching your financial goals by improving your spending habits and taking a more eco-conscious approach to spending?
The ImageNPay app can help! With your very own virtual plastic-free prepaid card, you can set spending limits, enjoy safer spending online and in-store, and more.
Tap the button below to find out more and download ImageNPay FREE on App Store and Google Play!
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