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10 Surprising Expenses that Can Negatively Affect Your Budget

For those who don’t have car insurance, a common reason is simply because they can’t afford it. While the cost of car insurance is an added expense, there are countless other items that the average person might spend their money on each month. While the nonnegotiable items include things like groceries, rent and utilities, you might be surprised to learn about these 10 surprising expenses that negatively affect your budget. Keep them in mind next time you complain about the cost of car insurance.

  1. Coffee: Many people start their day with a cup of coffee or two, and might argue that without it they could not be productive or efficient at their jobs. However, many people purchase coffee from expensive coffeehouses and restaurants, when it is much cheaper to make at home. Add up the cost of your $3 coffee each day to realize how much gets spent each month or year.
  2. Cell Phone Plans: Many people could argue that in today’s world, a cell phone is a necessity. Indeed, it is often required for work, keeping in touch with family and even replacing the land line entirely. Briefly consider how much you pay each month for your cell phone plan, and think about what you pay for any additional voice mail services, text messages, date plans or web usage. While using the phone for emergency phone calls might be a necessity, playing online games probably is not.
  3. Paying with bills: While nobody likes standing behind that person in line who pays for their purchase in pennies, that thrifty shopper might be onto something. People who only use cash to pay for items often accumulate large piles of coins that don’t get used. Try using your coins to go shopping, or take them to the bank and see how much you’ve earned.
  4. Tips: In most American restaurants, tipping is a given. However, when we see the restaurant bill, we don’t always connect that with the additional tipping cost. When you consider how much you spend each month on eating out, be sure to include tips in that amount. It might add an extra 15% to 20% to your dining total.
  5. Credit Card Interest: Although credit cards are typically a normal part of life for many people, the interest fees paid each month can be very high. Figure out just how much of your monthly payment is going to be paying down your credit card debt and how much is just interest.
  6. Parking: Depending on whether you work in a city or a rural area, add up how much you spend each week or month on parking fees and even road tolls. You might be surprised by the result. Consider switching to public transportation, or try carpooling with fellow employees to save money.
  7. Bank Fees: Take a look at your most recent bank statement to decipher how much money is being taken out as an overdraft fee, ATM fee or anything else. Try to avoid some of these costs by using cash back services in a grocery store rather than an ATM with fees and stay on top of your balances to avoid overdraft charges. You might consider switching to a new bank or even a credit union if the fees are recurring and too high.
  8. Internet Overages: Be sure to read the fine print in your internet contract at home. Although many of us use the internet on a regular basis, check to make sure there are no costs for going over a certain amount. Downloading movies, music or just browsing the web can push you over the limit and cause extra expenses each month.
  9. Purchasing Food at Work: Preparing a meal in advance and bringing it to work, usually for lunch, can be time-consuming. However, by preparing food at home rather than buying a sandwich or fast food, you can save a significant amount of money each day. Add up how much you spend each week on work snacks and food and you might be surprised.
  10. Bottled Water and Soda: Although it is recommended to drink plenty of water each day for health reasons, the price of bottled water can be astronomical. Save money by investing in a water filter and refilling old bottles. When it comes to soda and juices, use the biggest container possible. This will be cheaper per ounce than cans or individual bottles.