Saving & Spending Budgeting & Expenses

14 Everyday Expenses You Probably Spend Too Much On

It is foolish to needlessly waste money on these staple items.

By Kristin Hitchcock

Edited by Chris Kissell

Updated Aug. 28, 2025

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 Small markups, convenience fees, and outdated habits can quietly drain hundreds — and sometimes even thousands — of dollars a year from our budgets.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

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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.

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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.

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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.

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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.

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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.

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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.

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