Where Does All Your Money Actually Go?
Do you watch your entire paycheck diminish to zero each month, wondering where the heck your money went? You're not alone. Around 75 percent of Americans have an overspending problem. It's hard to save money in the best of times, and you deserve some little splurges. However, what's more important than having that new car or going out for dinner once a week is having a safety net, an emergency fund, and a retirement plan. Let's take a look at 20 things Americans most commonly overspend on. Are you one of them?
1. Groceries
Who isn't overspending on groceries these days? Never before did old ladies obsessively clipping coupons look so reasonable. These days, it's worth it to shop around for the best deals and only buy certain products when they're on sale.
2. Unused Subscriptions
We can't stress this enough: check your credit card statements! An astounding number of people get charged for months for subscriptions they didn't even mean to sign up for and do not use.
3. Housing
Another essential that's robbing you of a huge chunk of your paycheck is housing. Whether you're a homeowner or renter, it's hard to watch such an insane portion of your income just go towards the roof above your head.
4. Phone Plans
How much do you spend on your phone plan? With pretty much all cell providers being owned by just a few powerful companies, it's no wonder most Americans are forced to fork over a huge sum each month just to stay connected. It's no wonder so many young folks are embracing dumbphones.
5. Clothing & Shoes
Who doesn't have a massive collection of clothing and shoes in their closet, most of which is unnecessary? Americans have an unhealthy addiction to shopping, constantly buying pretty things they don't need because it makes them feel good.
6. Bars & Nightlife
Though you could argue it's a mental health expense, you don't need to spend every weekend at bars and clubs. Most Americans spend way too much money on nights out.
7. Eating Out
Have you noticed the prices at restaurants slowly creeping up in recent years? Many of us still haven't adapted in our minds to the actual cost of meals at restaurants these days, thinking we can pay for a hamburger at our local diner with a 5-dollar bill.
8. Insurance
While insurance is a necessary evil, many Americans make the mistake of not shopping around enough for the best deals, whether it's health, property, or car coverage. By comparing quotes from different companies and asking for deductibles, you can save up to 60 percent on insurance.
Antoni Shkraba Studio on Pexels
9. Food Delivery
We all have those nights when we really don't feel like cooking, but clearly, they're not as seldom as they should be given the amount we spend on food delivery. Try meal planning or buying some easy-to-prepare foods instead.
10. Electronics
Do you really need to upgrade every year, even though the last five iPhones are basically exactly the same? It's fun to have the latest and greatest, but given how much we overspend on electronics, we ought to start prioritizing the things that will actually make a difference to our lives.
11. Skin Care Products
Skin care is important. We should all be wearing sunscreen and cleansing our faces. However, too many of us are too gullible, getting roped into spending hundreds on creams that claim they can eliminate wrinkles.
12. Travel
We love traveling as much as the next person, but too many of us spend more than we can afford on luxury vacations. You don't have to stay in five-star hotels. Learn from backpackers and travel on the cheap, or at least prioritize better, budgeting for the splurges you want to make.
13. Makeup
One study found that Americans spend an average of $28 a month on makeup. That certainly adds up! You don't have to buy every product that's trending on TikTok; pharmacy beauty products are very often of the same quality.
14. Online Shopping
It's so easy to spend a lot when you're just clicking buttons on your phone or laptop. You somehow feel less connected to the money you're spending than if you were handing over wads of cash. It's seriously addictive, with Americans spending a total of $1.3 trillion last year on online shopping.
15. Cars
Do you really need a new car? For most of us, the answer is no, we just like to upgrade for the fun of it. However, when you consider the average cost of car ownership in the US is over $1,000, you might want to keep your old car after all, or avoid getting one altogether.
16. Home Upkeep & Decor
Americans spend anywhere from $6,000 to $12,000 on home upkeep and around $1,600 on decor yearly. While it's important to keep your home looking fresh and decorated how you want it, that upkeep range suggests that Americans don't shop around enough to find the best deals on property maintenance. While it's tempting to buy new cushions every season, decor is something that can be reused year after year.
Sammsara Luxury Modern Home on Pexels
17. Pets & Children
Americans spend a total of $150 billion on pets yearly and over $21,000 on a single child per year. We're not saying not to give your child and pets love, but they don't need to be spoiled rotten either.
18. Streaming Services
Hulu, Netflix, Spotify, Apple Music, Prime, Max, the list goes on and on. Each one costs anywhere from $7 to $23 a month, which adds up if you have more than a couple of them. How many of them are you really using regularly anyway?
19. Education
Sadly, unlike in places like Germany and Scandinavia, higher education ain't free in the US. In-state college costs an average of $11,000, and don't even get us started on out-of-state schools. You may be better off sending your kids to study abroad.
20. Convenience Foods
The US is known for having more of a go-go-go lifestyle than other countries. That's why convenience foods like prepared frozen dinners take such a large chunk of your grocery budget. Americans spend around $65 billion on convenience foods.
