6 Surprising Purchases That Waste Shocking Amounts of Money
We all have habits that feel like smart money moves, only to discover later they quietly drain our wallets. From bulk buys to name-brand skincare, it's easy to be lured by perceived savings or prestige, but end up overspending.
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Let's unpack some of the most surprising money sucks according to financial experts, and explore how to adapt our habits for lasting savings.
Buying in bulk often seems like a no-brainer since you're supposed to get more for less. However, Caleb Wood-Dagget, founder and financial advisor at Commonwealth Strategy Advisors in San Clemente, CA, pointed out that a lot of people waste money in this area without ever realizing it.
'Purchasing a lot of one item for a discounted price might sound like a good idea, but if half of it expires or goes unused, then you're not actually saving anything,' said Wood-Dagget. 'You just end up throwing money out slowly, rather than all at once.'
Melanie Musson of InsuranceProviders.com added that you can't assume just because something is in a larger container, it's cheaper.
'You need to consider the price per ounce or unit price, and compare it to the price of smaller packaging,' said Musson.
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High-end brands promise premium ingredients or cutting-edge features, but sometimes a budget-friendly alternative delivers the same result.
'There is no magic skincare formulation,' Musson pointed out. 'Skincare products often share many of the same ingredients across the board. If you compare ingredients on a $100 bottle of facial lotion and a $10 bottle and see that they're the same, you can be assured that your result will be the same, but you'll save a lot of money with the cheaper bottle.'
Flying on discount carriers can feel like a win until hidden fees surface.
'While discount airlines do offer lower fares, they may charge for seat selection, food, carry-on bags and printed boarding passes,' according to Michele Frank, associate professor of accounting at Miami University's Farmer School of Business. These fees add up quickly, and could result in a traveler losing the 'discount' they thought they obtained.'
Frank also said discount airlines tend to have fewer planes, fly fewer routes and only fly on certain days of the week. This means if your flight is canceled, you may not be able to get on another flight for days, which could add hundreds of dollars to your trip if it means you have to spend extra days in hotel rooms, so it's important to factor in these costs.
High-interest financing quietly inflates costs. A common trap is charging items you can't fully pay off monthly, incurring interest that outweighs any immediate benefit.
'If you're planning a big-ticket purchase that you need to make, but don't have enough cash to save up for, look for 0% financing specials from big box stores,' said Andrea Woroch, a consumer and money saving expert. 'Otherwise, look for a new credit card offering 0% APR and a cash bonus to help pay off the purchase. Just make sure you can pay off the purchase before the 0% interest promo period expires.'
Generic groceries, medications and household items often match brand-name quality at a fraction of the price.
'There are a plethora of generic brand products that can save you a lot, from 30% to 50%, without sacrificing quality such as generic groceries, generic meds and even generic clothing from stores like Walmart, Target and Costco,' said Woroch. 'For instance, you can save 30% on over-the-counter medicine by sticking with the generic brand. The FDA requires that generic medicine, including over-the-counter, work both as effectively and safely as the name brand, and it's a whole lot cheaper.'
Unlimited data can feel like peace of mind, but if you rarely exceed, say, 15 GB/month, you could be overpaying.
A study from WhistleOut found Americans waste $1,500 a year on excessive wireless data plans, while Mint Mobile reported 76% of Americans are on unlimited data plans. But 63% of them don't even use 15 GB per month.
'This is likely because many consumers now use W-Fi at home, at the office and even on the go as more businesses and retailers offer Wi-Fi connections at no charge,' said Woroch. 'Review your actual data and see if your current provider offers a plan that meets your needs so you stop wasting money on this monthly bill.'
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