14 Everyday Expenses You Probably Spend Too Much On

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 Small markups, convenience fees, and outdated habits can quietly drain hundreds — and sometimes even thousands — of dollars a year from our budgets.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.

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.

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.

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.

Ohio Driver? Cancel your car insurance

Driving without car insurance is illegal, but if you do this, you’re not actually breaking the law. Now I’m able to pay just $51 a month for two cars.

Score same-day savings today!

Don’t pay a CENT to contractors for home repairs

Sounds crazy. But … you’re probably curious and it’s free to check. You could be covered by this plan as soon as tomorrow.

Choose a plan from Choice Home Warranty here

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.

Get up to 25% off your first year

Ask this company to pay off your credit card debt

If you have a lot of debt, getting out of it can feel impossible. But a free call to this company might help you erase it faster.

Try National Debt Relief

Trending Stories

6 Things To Do If You’re Barely Scraping By Financially

Save Money on Car Insurance: How To Lower Your Rate

11 Dumbest Things Smart People Waste Money On

7 Moves If You Want to Stop Living Paycheck to Paycheck

Best High-Yield Savings Accounts of June 2025: Earn Up to 4.25% APY

7 Clever Ways to Crush Your Debt

Up To 5% Cash Back

Discover it^® Cash Back

4.7

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Discover it^® Cash Back

Apply Now

Rates and fees

Current Offer

Discover will match all the cash back you’ve earned at the end of your first year.

Annual Fee

$0

Rewards Rate

Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.

Benefits and Drawbacks

Benefits

• $0 annual fee
• Intro APR on purchases and balance transfers

Drawbacks

• Requires you to activate the highest-earning category each quarter
• Not accepted as widely overseas as Visa or Mastercard

Card Details

• INTRO OFFER: Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
• Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
• Redeem your rewards for cash at any time.
• Apply and you could get a decision in as little as 60 seconds. No annual fee.
• Start shopping and earning rewards in minutes with your digital card, before your physical card arrives in the mail, if eligible.
• Get a 0% intro APR for 15 months on purchases. Then 18.24% to 27.24% Standard Variable Purchase APR applies, based on credit worthiness.
• Terms and conditions apply.

---

Subscribe Today

Unlock the Best Banking Deals and Bonuses

From high-yield savings accounts to cashback checking and sign-up bonuses, we bring you the best banking offers to grow your money smarter.

or

SEE TOP BANKING OFFERS →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms