When you think about bad money habits, what comes to mind? Overspending, not saving enough, racking up debt … these are all habits that can cost you money. But there are other, less obvious bad money habits that can cost you money every year. Here are seven of them.
Not keeping track of your spending
It’s easy to spend $5 here and there on small purchases that bring you joy or convenience. But impulse buys can really add up. Spending an extra $5 a day adds up to $1825 each year.
Track your spending for at least a month to get an idea of where you can cut back.
Potential cost: $1825 a year
Putting wet clothes in the tumble dryer
Throwing the laundry straight from the washing machine to the dryer is very convenient, but it’s adding dollars to your electricity bill.
Canstar crunched the numbers and found that assuming you put six loads of washing each week in the dryer, it could cost you $336 a year.
Spend a bit of extra time to hang it out and that could be money in your pocket.
Potential cost: $336 a year
Read: Money habits you need to break
Deviating from your shopping list
If you’re not sticking to your shopping list at the supermarket, you could be costing yourself money.
According to one study, the average person spends an extra $52 per month on groceries by not sticking to their list. The study found that the average person makes two impulse buys per shopping trip, totalling $8.40.
While that may not seem like a lot, it adds up to $52 per month or $624 per year.
That’s why it’s important to stick to your list. It’s also a good idea to limit your supermarket visits to once a week rather than going every few days. The more often you go the more likely you are to be tempted to make impulse purchases.
Potential cost: $624 a year
Paying for unnecessary subscriptions
If you’re paying for a gym membership that you never use or a subscription service that you don’t really need, you’re wasting money. Take a close look at your subscriptions and cancel the ones you don’t need or use.
Research by ME bank found that 48 per cent of Aussies have forgotten about at least one recurring paid subscription service and 34 per cent are paying for subscriptions or memberships they don’t use. According to the survey, Aussies are wasting, on average, almost $200 a year on unused subscriptions.
Potential cost: $200 a year
Read: Money habits for happy couples
Not shopping around for car insurance
Car insurance is a necessary evil. The good news is that there are ways to save money on your car insurance. One of the best ways to do this is to shop around for the best rates.
Just make sure that you are comparing like for like and that you are still getting the same level of cover before switching to a cheaper product.
Potential cost: $800 a year
Not separating money when you get paid
One of the best ways to know just how much you can spend each week is by separating your pay into bills, savings and personal use. It’s a good idea to try to save 10 per cent of every pay.
The average weekly full-time wage in Australia is $1769.80, or $1342 after tax. If you transfer $134 into a savings account straight away, you could be saving an extra $6978 each year.
Potential cost: $6978 a year
Read: Four habits of frugal people
Waiting until your petrol tank is empty before filling up
Waiting until your tank is empty means you’re at the mercy of the petrol price cycle and could end up paying more.
The ACCC, which tracks petrol price cycles, explains that petrol prices move up and down in regular patterns or cycles. “The cheapest and most expensive days to buy petrol can change from cycle to cycle. Use price cycles to help you decide when to buy petrol,” says the website.
Potential cost: $100 a year
What bad money habits do you have? How do you save? Why not share your suggestions in the comments section below?
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