5 Ways You’re Spending Money Without Realizing It

1. Forgotten Subscriptions

If you're paying for unwanted streaming, music, news or other subscriptions, those payments can add up. It's easy to sign up for a subscription in the moment, then forget about it. You may not even realize you're being charged each month at all.

Taking inventory of your monthly subscriptions and cutting out what you don't need can help you keep more money in your bank account. Periodically look through your bank and credit card statements for any recurring charges. Then, cancel anything you don't get value out of.

2. Junk Fees

Junk fees are sneaky surcharges tacked onto the goods and services you pay for. For example, you book tickets to a show or reserve a stay in a hotel, only to find that your total at checkout has a bunch of previously undisclosed charges tacked onto the advertised price. Those may be junk fees. And junk fees can also be attached to more unavoidable spending, such as an unexpected monthly service fee from your apartment rental company.

Avoiding junk fees comes down to staying vigilant anytime you're making a purchase or signing a contract. If you're charged an unexpected fee, you can contact a customer service representative and ask for it to be waived. Last, comparison shop to look for options that don't charge exorbitant junk fees.

3. Impulse Spending

It's not uncommon to swipe your card on a whim for purchases that feel inconsequential—a quick cup of coffee, an enticing new health or beauty product, or that new glossy mag off the rack in the checkout aisle.

While treating yourself isn't necessarily a bad thing, small impulse buys can add up. You can stay intentional about your budget and stop impulse spending by setting boundaries for how and when you'll swipe your debit or credit card.

If you need to cut back, try finding replacements for impulse purchases. For example, if a mid-morning hankering for caffeine has you routinely hitting the coffee shop, try packing extra coffee in a thermos to circumvent the need. If runaway clothes shopping is burdening your bank account, try setting a more affordable retail budget and committing to it.

4. Food Waste

The average family of four throws out $1,500 worth of food each year, according to the U.S. Department of Agriculture (USDA). That's about $4 a day that could stay in your bank account. Or, it could go toward covering your morning latte, guilt-free.

Cutting back on personal food waste can take a bit of planning, but implementing some new habits can help you toss less. Planning your meals to make use of ingredients already on hand, using up fruits and veggies that are nearing expiration in smoothies or soups, and being a bit more committed to getting through your leftovers can all help you limit waste—and save money.

5. Overpaying for Bills

Bills are a fact of life, but you may be paying more than you have to. Periodically assess your phone, internet, cable, utilities and insurance accounts to see if you can lower your rates. You can call your individual providers to ask if they can offer you a lower rate. Or, consider Experian BillFixer^™, a feature that helps you negotiate your rates to reduce what you pay each month.

It's also a good idea to check up on your insurance policies once a year to make sure you're only paying for coverage that you need and comparison shop for lower rates. Experian's auto insurance comparison tool can help you view different car insurance quotes to conveniently compare pricing.

Tips to Stop Overspending

It's easy to fall into a habit of overspending, and reeling it in can require some concerted effort. Here are some tips to start controlling your spending.

• Track your spending. It's difficult to change an overspending habit if you don't know exactly where your money is going. Consider using a budgeting app to help you automatically track and sort your transactions by category.
• Create a budget. Once you have a sense of your baseline spending, you can set a forward-thinking plan by starting a budget. Decide how much of your monthly income you want to go toward various wants, needs and savings goals. Then, continue tracking your spending to be sure you're sticking to your plan.
• Try paying with a debit card or cash. Many people find that it's easier to accidentally overspend if they routinely shop with a credit card. If you need to reel it in, try sticking to debit or cash.
• Delay your purchases. If impulse spending is behind your overspending, implement a system to help you avoid buying in the heat of the moment. Try creating a waiting period between when you want to make an unnecessary purchase and when you actually buy it. For example, you could choose to wait a week for a smaller purchase, and a month for a large purchase.
• Focus on your "why." Cutting back spending can feel like a drag, but focusing on the things you really want can help you stay motivated. Setting financial goals for the future and then envisioning yourself accomplishing them can help you say no to temptations that won't really make you happy long term.

Learn more: How to Avoid Overspending Each Month

Frequently Asked Questions

Plug Budget Leaks

Spending leaks can spell trouble from your budget. Plugging them up comes down to taking a critical eye to your spending and looking for areas to target. Then, take practical steps to cut back there. Doing this periodically can help you tighten up your budget and keep your spending working for you.