You try to stick to a monthly budget, but it seems like money comes out of your account faster than you can earn it.
If that sounds like a familiar situation, one of these expenses might be causing a silent but serious drain on your bank account.
1. Bank fees
Overdraft fees, ATM fees, international transaction fees, minimum balance fees—all of these charges add up to a lot of wasted money. To avoid getting hit with bank fees, look closely at your account’s terms and conditions. By choosing an account that fits your lifestyle and minimizes fees—and by knowing your account’s overdraft policies and ATM fees—you can keep more money in your bank account. To view the great account options at WaterStone Bank, visit https://www.wsbonline.com/.
2. Unused subscription services
Subscription services that automatically renew can sneak up on your budget. Ask yourself if you’re getting your money’s worth out of every streaming service, gym membership or subscription service you pay for. Also keep an eye out for free trials that are no longer free: To avoid making payments after your trial ends, set a reminder to cancel the subscription before the trial’s expiration date.
3. Credit card interest payments
If you only make the minimum payment on your credit card bill, you’ll pay handsomely for it in interest. To avoid interest fees, pay off your full credit card balance every month. If you’re too tempted to spend beyond your means, try paying off your credit card balance each time you make a new charge to help you stay on track.
4. New technology
Do you replace your smartphone like clockwork every year and jump at the latest model when a new gadget drops? These habits can be costly over time. You could save hundreds of dollars just by waiting a while to upgrade your gadgets.
When you decide it’s time for something new, take advantage of savings by opting for a slightly older model—something that’s still an upgrade from your old device, but not the newest (or priciest) technology on the block.
5. Extended warranties
Many big-ticket purchases, like cars or expensive electronics, offer extended warranties. The warranty might sound like a good idea, but a Consumer Reports survey found that more than half of people who purchase extended warranties never use them, and the people who use them end up paying more for the warranty than they receive in benefits. If you’re concerned about costly repairs, skip the extended warranty and set money aside in a savings account.