Finding ways to reduce your spending can help you save more or keep more in your pocket. If you’re feeling financial pressure, you might be consciously limiting everyday spending or cutting back on discretionary areas in your budget. However, what about the spending you do unconsciously?

“Budget leaks” are money you spend without thinking or that leaves your bank account unnoticed. These hidden expenditures can add up quickly. The first step to plugging leaks in your spending is to identify them. Here are five ways you may be spending money without realizing it, plus what to do about each.

1. Forgotten Subscriptions

Forgotten subscriptions can drain your finances without you noticing. Paying for unwanted streaming, music, news, or other subscriptions can add up. It’s easy to sign up for a subscription in the moment, then forget about it. You might not even realize you’re being charged monthly.

To save money, take inventory of your monthly subscriptions. Cut out what you don’t need. Periodically review your bank and credit card statements for recurring charges. Cancel anything you don’t get value from.

2. Junk Fees

Junk fees are sneaky surcharges added to the goods and services you pay for. For example, booking tickets to a show or reserving a hotel stay might reveal extra charges at checkout. These may be junk fees. They can also be attached to unavoidable expenses, like unexpected service fees from your apartment rental company.

To avoid junk fees, stay vigilant when making purchases or signing contracts. If charged an unexpected fee, contact customer service and ask for it to be waived. Additionally, comparison shop for options that don’t charge exorbitant junk fees.

3. Impulse Spending

Impulse spending happens when you make unplanned purchases on a whim. These might seem inconsequential—a quick cup of coffee, a new health product, or a magazine at the checkout aisle. However, small impulse buys can add up, creating budget leaks.

A survey from Slickdeals found that respondents spent an average of $151 a month on impulse purchases in 2023. That’s almost $2,000 a year in unplanned spending. Treating yourself isn’t bad, but be intentional about it. Set boundaries for how and when you’ll use your debit or credit card.

To cut back, find replacements for impulse purchases. For example, if you often buy coffee mid-morning, pack extra coffee in a thermos instead. If clothes shopping strains your budget, set a more affordable retail budget and stick to it.

4. Food Waste

The average family of four throws out $1,500 worth of food each year, according to the U.S. Department of Agriculture (USDA). That’s about $4 a day that could stay in your bank account or cover your morning latte, guilt-free.

Reducing food waste requires a bit of planning. Implement new habits to toss less. Plan meals to use ingredients you already have. Use fruits and veggies nearing expiration in smoothies or soups. Commit to getting through your leftovers. These steps can help limit waste and save money.

5. Overpaying for Bills

Bills are a fact of life, but you may be paying more than necessary. Periodically assess your phone, internet, cable, utilities, and insurance to see if you can lower your rates. Call your providers to ask for lower rates. Consider using Experian BillFixer™, a feature that helps negotiate your rates to reduce monthly payments.

Check your insurance policies annually to ensure you’re only paying for needed coverage. Comparison shop for lower rates. Experian’s auto insurance comparison tool can help you view different car insurance quotes and compare pricing conveniently.

Plug Budget Leaks

Spending leaks can spell trouble for your budget. Plugging them up requires taking a critical eye to your spending and identifying areas to target. Then, take practical steps to cut back. Doing this periodically can help tighten your budget and keep your spending working for you.

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