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Managing your finances correctly seems as if it gets harder and harder with each passing week; especially in today’s society. Not only is the cost of living rising rapidly for most families, but the amount of sneaky expenses we have is skyrocketing. This type of expenses are the reason that taking the reigns of your finances – your spending, your budget, your savings and more – is so incredibly important.

What is a Sneaky Budget Expense?

What is a sneaky expense, you ask? It’s an expense that is easy to create and even easier to forget about. These types of expenses may not be the highest dollar amounts in your budget, but they can easily chip away at your bank accounts without you even realizing what is happening.

This is especially true if you have recently gone through a life change. Events such as a new romance, divorce, a move or health issues can all cause these types of expenses to jump incredibly quickly and to numbers that your budget can’t handle.

How to Take the Reins of Your Budget

The first step to taking the reins of your budget and getting things under control is awareness. This means not only realizing there is a problem to begin with, but also taking the time to figure out where the problem areas are.

The second step is to take action. It does you no good to know you have hidden expenses in your budget and to do nothing about them. Doing so is a fantastic way to find yourself living paycheck to paycheck each month.

The third and final step to taking control of your finances and giving yourself a second chance is to create a new budget or at the very least; a new spending plan and then sticking to it. You can use something as simple as pen and paper, buy a budget book or a printable budget packet to help you get started. After all, what is the point of doing the other two steps if you’re not going to take the plunge and follow all the way through.

1. Streaming Services

It may not seem like it, but Netflix, Hulu, Amazon Prime and other subscriptions you have can be sneaky expenses. Those $5, $10 and $20 monthly subscriptions may not seem like much individually, but when you add them all up, they can put a significant dent in your budget; especially if you have forgotten they exist.

To help reduce these costs, inventory whether you actually use a particular subscription service or not. If you have not used it in two weeks, you aren’t likely to anytime soon. Instead of paying for it, cancel until you are ready to use it again.

2. Convenience Fees

Whether it’s ordering takeout or paying bills online, convenience often comes with a price. Those small fees here and there can accumulate over time. This is especially true with fees such as ATM fees, late fees or the credit card fees that some gas stations and stores charge.

This is one situation where cash really is king because while it may only be a few cents or dollars here and there, these fees can easily add up to hundreds each year if you’re hit by too many of them.

3. Unused Memberships

As I mentioned above, subscriptions and memberships that you have forgotten about or don’t use can add up to a significant cost each month. Charges such as for your gym memberships, streaming services, or club memberships that you rarely use are essentially money down the drain.

Take a look at your bank statements to determine what you’re actually paying for then decide whether you’re getting enough value out of these memberships to justify the cost. If not, it might be time to cancel or downgrade.

4. Impulse Buys

I firmly believe that impulse buys have a place in your budget, however, if you’re not careful, those spur-of-the-moment purchases can wreak havoc on your budget. Before making a purchase, take a step back and ask yourself if it’s something you truly need or just a fleeting desire.

It can be helpful if you delay the gratification with an impulse buy since it gives you the time to really consider the pros and cons and if you truly need or want to make the purchase. I personally do this by keeping my spending money in an external bank account away from my main checking account. It takes three days to transfer which is the perfect amount of time for me to decide if I really need the item.

5. Bank Fees

ATM fees, overdraft fees, and maintenance fees can eat into your finances without you even realizing it and honestly, there is no real reason for it. If your bank is charging you excessive fees, the quick answer is to switch banks.

There are plenty banks around that don’t charge account fees. I personally like Varo for a fee free checking account. It just makes things easier when you’re not giving up over $100 a year to fees.

If you’re being hit left and right with NSF or overdraft fees, it is time to take a look at your budget with a more critical eye than you have been. Use an account ledger to figure out exactly where your money is going, create a new budget if necessary and reset your finances.

6. Eating Out

I get it. Sometimes you simply don’t want to cook and honestly, eating out every so often isn’t going to make or break you. But, if you have gotten to a point where you are dining out multiple times a week, you have created a money drain and problem for yourself.

Instead, find a few easy frugal recipes, buy a slow cooker or buy an Instant Pot and start to cook at home more often. Freezer cooking can be a major help in these situations as it allows you to cook ahead of time for an easy meal later.

7. Kids Expenses

We all know that having kids is expensive, but having kids also means a lot of sneaky expenses we don’t expect and sometimes they’re not smaller expenses. This is especially true once they reach school age.

Sports fees, school fees and more can all sneak up on you without any warning or knowledge. To protect your finances from them, set aside money in a separate account specifically earmarked for these fees.

8. Credit Card Interest

These days, a lot of us carry a balance on our credit cards. This is a fantastic way to create a sneaky expense for ourselves. Credit card interest can be based on a high percentage and can add a significant amount of money to our budget yearly.

To prevent that added cost, pay off your credit card balances every month. This will prevent interest from stacking up and remove the sneaky budget expense.

9. Energy Vampires

Have you ever heard of phantom electricity? If not, it’s likely costing you a few bucks each year. Appliances and electronics that are plugged in but not in use can still consume energy, adding to your utility bills.

This doesn’t mean appliances like your fridge or freezer. Think of your tv, game systems, phone charger and the like. These items continue to draw a charge even if they are not actively being used.

While vampire appliances won’t cost you a large amount of money each year, they do cost you. If you’re really looking to cut your expenses down, take a look at which ones you can unplug until they are needed.

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You Need a Budget by Jesse Mecham

10. Brand Loyalty

Most of us have one or two items we are brand loyal to, but it is important to realize that brand loyalty does create sneaky expenses and depending on how many products you’re brand loyal to and what those products are, it can add up to significant amounts over the course of a month or year.

The truth is that most generic products are the exact same product simply repacked with a generic label on it. But by using the generic version, you can often save yourself a few dollars difference.

I don’t recommend jumping into changing all of your products all at once. Instead, replace them a few at a time. Not all generic products are of the same quality. Cottage cheese is one in particular I am super picky about. Replacing them slowly will allow you to find the ones you like and save money without getting stuck with an entire home full of things you may want to find a different brand for.

11. Late Fees

Whether it’s a late payment on a bill or returning library books past their due date, late fees can quickly add up. Set up reminders or automatic payments to avoid these unnecessary expenses.

However, if setting up auto payments will run the risk of running your bank account into the negative, I do not recommend you do that. In this instance, the late fee will likely be a far smaller amount than the overdraft fee would.

Again though, if an overdraft is a concern, it’s time to take a look at your budget.

12. Warranties and Insurance

Sometimes having a warranty or insurance for a purchase makes sense but more often than not, it doesn’t and is simply a waste of money. Before you purchase that extra warranty, ask yourself if it really is worth it.

If the item you’re purchasing isn’t likely to break or need replaced soon, there really is no reason to take the offering. You’ll essentially be paying for something you won’t use and won’t need.

This is not the case for things such as a car or home purchase, major appliances and other big ticket buys.

13. Convenience Store Purchases

I am so bad about popping into a gas station or convenience store to grab a 20 oz Diet Dew when I’m traveling, but those purchases add up and they add up quickly. These typ

es of stores are notorious for higher than average pricing which means we are not only wasting money, but we’re wasting a lot more than if we would buy at a different store.

Instead, choose a cheaper option such as a fountain pop or buy those products in larger quantities at the grocery store.

14. Bank Transfer Fees:

Transferring money between accounts or sending money to friends and family can sometimes come with fees. This is especially true if you often use the instant withdraw options with apps such as Paypal, Venmo or CashApp.

Instead, save yourself the fee and use the normal transfer method. It will take longer to receive your money but you won’t need to pay to have it transferred either.

15. “Upgrade” Mentality

We all want nice things but if you are feeling the need to upgrade simply to have the nicest things, you are going to cost yourself a pretty chunk of change. This is called “Keeping up with the Joneses” and is a great way to find yourself broke.

If you truly do want to upgrade, take the time to save for the item. Not only will this allow you to purchase it without hurting your finances, but you will also appreciate it more once you do make the buy.

By shining a light on these often overlooked expenses, you can take proactive steps to plug the leaks in your budget and keep more money in your pocket. Remember, it’s the small changes that can make a big difference in your financial well-being.

Source: sixdollarfamily.com

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