Buzz
While large expenses can hit your budget hard, smaller, more hidden costs can silently increase over time. Trulia highlights some of the most common 'money drains.'
A money drain refers to a recurring expense that slowly grows and puts pressure on your finances. Some are so subtle, you might not even notice them. For instance:
Price inflation
: Cable and internet providers are notorious for 'price inflation.' Promotional rates for new customers eventually end, and additional fees may appear unexpectedly. If you aren’t vigilant, you might end up paying far more than you initially planned.
Food waste
: A
study by the Natural Resources Defense Council
found that Americans discard 40% of the food they purchase, which adds up to an average of $2,000 annually per household. Meal planning and resisting the urge to buy in excess can significantly help reduce waste and prevent this common financial leak.
Energy wasters
: If your heating or cooling systems are running inefficiently while you’re out, you might be losing hundreds of dollars annually. Other major energy wasters include outdated appliances and incandescent light bulbs. With a few adjustments, you could save money throughout the year.
To identify these silent costs, observe how your budget changes over time. For instance, if you use a Mint account, visit the trends section and check your spending in a particular category over time.
This will allow you to spot any increases in your spending. If you notice a rise, it could be a sign of a money leak. For further insights, check out the complete post through the link below.
