Many of us don't realize how much we overspend on items we use every day. Small markups, convenience fees, and outdated habits can quietly drain hundreds — and sometimes even thousands — of dollars a year from our budgets. Below are some everyday expenses where spending less might help you get ahead financially over time.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $15 the first year with auto-renewal.
Groceries
You don't need to completely overhaul your diet to save money at the store. Instead, just shop a little smarter.
Clipping digital coupons and purchasing store-brand items can reduce your bill significantly. Many store brands taste similar to name-brand items, allowing you to save on your bill without sacrificing quality.
Medications
Name-brand medications often carry high price tags. Fortunately, equally effective generics are available at a fraction of the cost.
The U.S. Food and Drug Administration (FDA) says generics can cost 80% to 85% less than brand-name drugs. Also, using discount cards or services such as GoodRx might help lower your costs, especially if your health insurance isn't the best.
Gas
Membership clubs such as Costco and Sam's Club often sell gas for less per gallon than the prices you will find at nearby stations.
While it might not add up to much, every little bit counts. Some credit cards also provide cash back on gas purchases, which can further reduce your overall costs.
Resolve $10,000 or more of your debt
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1 <p>Clients who are able to stay with the program and get all their debt settled realize approximate savings of 46% before fees, or 25% including our fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.</p>
How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.
Phone service
Many people overpay for phone plans packed with features they rarely use. Switching to a budget carrier like Mint Mobile or Visible can significantly lower your monthly bill compared to the rates charged by major providers.
Over time, that switch could save you hundreds of dollars annually without you needing to compromise on coverage.
Paper towels
Paper towels might be convenient, but they can be costly over time. A 12-pack of premium paper towels can cost $20 or more, and using them frequently can add up fast.
Instead, consider using reusable cloths for most messes. Such cloths can be washed and reused, significantly reducing this recurring expense.
Coffee
Daily coffee shop visits can strain your budget. Brewing your own cup at home can save you a fortune.
In fact, skipping a daily grande brewed at Starbucks and making your own coffee at home instead is likely to save you hundreds of dollars each year.
Soap
Bar soap is often much cheaper than liquid soap, sometimes by up to 50%. Bar soap tends to cost around 10 cents to 50 cents per ounce, while liquid hand soap ranges from 20 cents to $1 per ounce, according to the retailer Areton.
Plus, bar soap requires minimal packaging and contains fewer additives, making it a more economical and environmentally friendly choice.
Meals
Regularly dining out can significantly increase food expenses. The average cost of a home-cooked meal is about $4.23, while eating at an inexpensive restaurant averages $16.28 per meal, according to research from Top Nutrition Coaching.
That means preparing meals at home can save you hundreds or thousands of dollars annually.
Water
Choosing tap water over bottled water can lead to some big savings. In the U.S., tap water costs less than 1 cent per gallon, whereas bottled water averages about $10 per gallon, according to the American Museum of Natural History.
Plus, when you choose tap water, you're also reducing plastic waste. Going with tap water can save you hundreds or even thousands of dollars per year, depending on the amount of water you drink.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2 <p>See website for details.</p>
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
Streaming subscriptions
Americans spend an average of more than $550 annually on streaming services, according to Forbes. Many people subscribe to multiple streaming services but underutilize them.
Nearly half of such subscriptions are rarely used, Forbes says. That leads to unnecessary expenses that can cost folks hundreds of dollars a year.
ATM fees
Using out-of-network ATMs can result in significant fees. Last year, a Bankrate survey found that the average total cost for such transactions was $4.77, comprising an average surcharge of $3.19 from the ATM-operating bank and an additional $1.58 from the customer's bank.
The cost of regularly using these ATMs can quickly add up over the course of a year.
Impulse purchases
Impulse buying can really drive up your costs. Americans spend an average of $5,400 per year on impulse purchases, with common items including food, clothing, and household goods, according to StudyFinds.
These unplanned expenses accumulate quickly, affecting your overall budget. You don't necessarily have to cut out impulse buys altogether, but it can be helpful to reduce the amount of unplanned purchases you make.
Gym memberships
Many gym memberships go unused, leading to wasted money. Considering the average annual gym membership costs hundreds of dollars, it's important to make sure you actually use the membership you pay for.
And remember, there are many ways to get exercise for free, from jogging to hiking and playing tennis.
Lottery tickets
Americans spend a lot of money on lottery tickets each year. In 2024, the investment advisory firm Elm Wealth projected that such expenditures would reach about $125 billion. For habitual players — who tend to be in lower-income households — annual spending can reach about $2,500.
While you don't have to give up on the lottery altogether, redirecting some of that cash toward savings or investments could make a big impact.
Bottom line
Reducing expenses doesn't always mean eliminating things. Instead, simply making smarter choices can greatly improve your finances without requiring much sacrifice on your part.
Making changes to how you spend on the items on this list can help you keep more cash in your wallet year in and year out.
More from FinanceBuzz:
- 7 things to do if you’re barely scraping by financially.
- Find out if you're overpaying for car insurance in just a few clicks.
- Make these 7 savvy moves when you have $1,000 in the bank.
- 14 benefits seniors are entitled to but often forget to claim