10 Expenses
Most Likely To Drain Your Checking Account Each Month
1. Unnecessary Groceries
Unless you carefully plan your meals and shopping list, you can easily buy more food than necessary or pick up several new things to try. Along with leaving you with less money, buying unnecessary groceries can later lead to throwing away expired or unliked items. Better control your spending by shopping with your list, seeking deals, using coupons, considering generics and eating before your trip.
2. Fake Emergencies
True emergencies — such as illnesses, vehicle breakdowns or home repairs — can justify spending extra cash from your account. However, you might mistakenly identify other expenses as emergencies, such as replacing your broken TV or attending a last-minute entertainment event. It’s better to put aside money for such expenses beforehand rather than risk your financial stability.
3. Restaurant Trips
Budgeting for occasionally eating out is fine, but you can drain your checking account funds if you do this too much. It can also be a big waste of money when dining out keeps you from using the groceries you already bought. Instead, cut back on coffee shop and restaurant trips and plan your meals for less wasted money and stress.
4. Costly Vacation Plans
Like other Americans, you might be spending on average $2,000 to $3,000 annually on travel costs. This sum can drain your checking account if you’re not planning trips wisely and saving for months before the trip. Consider cheaper options such as staycations, road trips and free attractions to reduce costs. If you do need to fly or book a hotel, compare prices for different providers and dates, try to avoid busy seasons and skip the luxury upgrades.
5. Expensive Plans and Subscriptions
Whether it’s your cable, internet or cell phone plan, premium packages can drain your checking account funds. Plus, you might pay monthly for a gym membership, various streaming and app subscriptions and online service plans. Consider downgrading packages, canceling unnecessary subscriptions and looking for free alternatives. For example, work out at the park or get media from the library.
6. Retail Therapy and Impulse Purchases
You might find yourself making many purchases simply because shopping makes you feel better or the item looks interesting at the time. Afterward, you might have regrets when you see the charge on your statement or realize you really aren’t that interested in the item. Finding other ways to manage stress and carefully thinking through purchases will help reduce these costly expenses.
7. Lavish Nights Out
Especially if your friends are higher earners, they might invite you to fancy nights out that don’t fit into your current budget. Although you may not want to feel left out, skipping these outings can benefit your checking account. You could also try to recommend cheaper outings or simply wait until you can save extra cash for a special outing.
8. “Latest and Greatest” Purchases
Whether you’re shopping for a car, house or cell phone, you might feel attracted to what is brand new and has the most features. Especially for high-cost items, such purchase decisions can drain your checking account with large upfront expenses or high debt payments. Looking for used items or even just staying away from premium options can save you money.
9. Pampering Services
When you’re stressed out, enjoying a nice spa or salon day can make you feel better. However, these services can drain your account if they’re more than occasional. You can help yourself financially if you find ways to pamper yourself at home.
10. Checking Account Fees
Several checking account-related fees could be costing you a lot. First, you might pay a monthly service fee unless your bank has a waiver option you qualify for. Plus, out-of-network ATM fees, overdraft charges, stop payments and various transaction fees can add up. Review your account terms and find ways to prevent such charges.
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