These Bad Household Habits Are Wasting Your Money

Shannon Quinn - January 30, 2023

Photo: Credit: Shutterstock

There is a quote from Brian Tracy, “Successful people are simply those with successful habits.” Those small things we do every day truly add up over time. This is especially true when it comes to our money-spending habits. If you continue making these mistakes over and over again, you’ll end up broke. Don’t worry, though. It’s never too late to form good habits, even if it takes practice to change your old ways. Here at Home Addict, we’ve laid out some of the most common bad household habits that people are wasting their money on.

Being Cluttered and Disorganized

Believe it or not, your organizational habits have a lot to do with how much money you spend. Have you ever bought something, only to realize that you actually owned that same thing already? You couldn’t find it because it was stuffed away in a drawer somewhere. A lot of people also feel like they have “nothing to wear” in their closet simply because they can’t see everything they own. Once you get in the habit of organizing your belongings, it becomes so much easier to live a minimalist lifestyle. You can have fewer, nicer things. It’s actually very liberating.

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Buying Discounted Items Just Because They’re On Sale

Couponing can be a great way to save money on household essentials. I do it myself. It’s one of those habits that I let fall to the wayside for a while. And now that I’m back into it, I love how much I can get for so little money. But not everyone knows how to limit which coupons are actually worth using. According to CreditDonkey, 94% of people use coupons and 38% buy more than they intended because they have a coupon. So at least a third of people are guilty of this. Even if you don’t use coupons, discount stores like Ross and Marshalls can be very tempting, too. And a lot of people fall into the trap of buying items just because they’re on sale. Remember that it’s okay to say “no” to something you’re not going to use, even if it’s a great deal.

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Keeping Up With the Joneses

One of the biggest money-wasting habits is trying to “Keep Up With the Joneses“. If you’re not familiar, it’s when you compare yourself to what your neighbors are doing, and try to follow their lead. For example, you spend money to upgrade your house just to match what everyone else in the neighborhood is doing to their houses, as if it’s a new standard. Or, your neighbor gets a new car. Suddenly, you feel embarrassed by your old car that you’ve been driving for 5 years, so you decided to get a new car too, even though your old one is still perfectly driveable. Just remember that people who do things like that may actually be broke or just barely living from paycheck-to-paycheck. It’s much better to be frugal and live within your means. Just look at Warren Buffet. He has been driving the same car for 10 years.

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Stockpiling More Food Than You Can Realistically Eat

Years ago, only a small minority of “doomsday preppers” stockpiled things. Then the Covid-19 Pandemic happened. Now, everyone in the world had to rethink their shopping habits to prepare for the possibility of another lockdown. According to a study conducted by the Wall Street Journal, sales at bulk wholesale stores like Costco and Sam’s Club were up 26.6% in 2021 compared to 2019. According to the data, people are now buying more of everything, across the board. You never know what there will be a shortage of next- whether it’s toilet paper, tampons, or baby formula. It’s fine to stockpile non-perishable essentials with the way things are now. But eventually, food is going to expire. Even in the worst moments of the Pandemic when people were clearing grocery store shelves, there was still something to eat. Maybe it wasn’t exactly what you wanted. But you weren’t going to starve.

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Neglecting Household Maintenance

There are so many “hidden costs” to owning a home. A lot of people will calculate the cost of the mortgage and property taxes, but completely ignore potential repairs and yearly maintenance. It’s so important to keep up with regular maintenance on your home, even if it hurts to pay for it. For example, having someone repair and maintain your HVAC system every year might cost a couple hundred dollars. But buying an entire new system will be upwards of $10,000. Paying someone to clean the gutters might cost $100. But if you allow them to get clogged, they can cause water damage to your house, which can cost thousands of dollars.

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Too Many Subscriptions

In the last bullet point, I talked about how you can save money by cord cutting. But you need to be careful to not let your subscriptions to streaming services get out of hand. According to Statistica, the average American household spends $114 per month on streaming services and digitally renting movies. That basically defeats the purpose of cord cutting! In my family, we save money by sharing our logins with one another. So each of us is only paying around $30 per month, and we get a ton of options. To save money, I temporarily cancel a subscription if I run out of things to watch, and warn everyone in the group chat about 2 weeks ahead of the expiration. If a new show premieres, I can always sign up again later. By taking short breaks like this, I save roughly $200 per year.

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Buying Brand Name Products

When it comes to name brand products, you need to be careful on what’s worth buying, and what’s just a waste of money. For example, I believe that name brand laundry detergent is worth buying, because it’s more concentrated. So you can use a lot less soap to get better results. It smells better, and keeps your clothes in better condition. And when you use coupons combined with sales, it’s the same price- if not cheaper- than generic brands. But with almost everything else in life, I just go for dollar store brands. Dave Ramsey has done a really great breakdown of a generic vs. name brand shopping guide for groceries. In almost every scenario, they were able to save a few dollars per meal by buying generic brands.

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Constantly Buying New Clothes

According to The Atlantic, the average American buys a new piece of clothing every 5 days. My jaw dropped when I read this. Other statistics I found say that people buy 68 new garments per year. If we give each item an average of $30 apiece, that’s $2,040 per year. For those of you who like your designer brands, the cost is probably much higher. This is mind-blowing. Particularly if you are someone who goes years wearing the same things. If you happen to be one of those people who buys clothes once a week, check yourself before you wreck yourself. Opting for classic, timeless pieces instead of trendy fast-fashion finds is a smart and stylish way to stretch your budget. And you know what they say, “less is more”. Brands like Old Navy offer basics in solid colors that will never go out of style, proving that you can always look chic on a budget.

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Food Delivery Apps

During the Pandemic, many people got on the bandwagon and started using food delivery apps. It was crucial to keeping everyone safe when they were feeling sick, and we needed to isolate ourselves from other people. These apps are great when traveling and you don’t have access to a car. On occasions like that, it just makes sense to use the service. However, the fees and tips make it too expensive to keep it as a regular thing for me. And if this is one of your habits, you might want to re-evaluate if it’s really worth it. Some people have cars, and they still use apps to get their takeout delivered out of pure laziness. According to Circuit, The average American spends $33.89 per order on food delivery, which translates to $37.28 a week, $152.51 per month, and $1,843.72 a year.

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Letting the Draft In

If you own a home, you should really work on keeping the draft out of your house. Everyone’s heat bill will vary depending on the size of your home, but it will be anywhere between $200 and $600 per month. According to Consumer Reports, you can lower your heat bills by 20% just by eliminating the draft. This can be accomplished by putting plastic on your windows in the winter time, using caulk to fill in any cracks, and possibly replacing the single-paned windows with double glazed. You may also need to add insulation to your attic. A huge project like replacing your windows or insulation will cost a lot up-front, but you will eventually make your money back over the lifetime of owning your home.

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Paying For Microtransactions on Gaming Apps

In case you’re not aware, the term “microtransactions” refers to the small digital purchases we make on apps- especially mobile games. For example, some people spend around $5 a month on Pokemon Go to participate in their monthly events, expand inventory, and acquire items needed for the game. It’s fine to treat yourself a little bit, especially if it falls within your entertainment budget allowance. But a lot of people let it get out of hand. According to Statistica, the average American will spend $92 per year on microtransactions. But then there are some people, like this gamer on Quora, who admits to spending $1,000 to $5,000 per game on downloadable content. And if you have kids, they often have no concept of how much these transactions truly add up. It’s smart to teach them good habits, like having monthly limits to spending money on games.

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Grocery Shopping When You’re Hungry

There is a famous saying that you should never go grocery shopping when you’re hungry… And it’s so true. When you’re hungry, it’s a lot more difficult to control yourself, because everything looks so appetizing. You end up buying things that you shouldn’t have, and it wastes a lot of money. This can be one of those habits that are hard to break, especially if your only time to shop is immediately after work. Try to plan ahead by making a grocery list, and consider meal planning. Also bring a snack with you, or consider going to a fast food drive-thru to pick up a $1 sandwich just to hold you over.

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Strictly Following Expiration Dates

If you strictly follow expiration dates, you may be losing money by throwing out perfectly good food. According to CNN, expiration dates solely indicate freshness, and are used by manufacturers to convey when the product is at its peak. That means the food does not expire in the sense of becoming inedible. For dry foods, there may be no difference in taste or quality. Expired foods won’t necessarily make people sick, either. However, you should only eat foods if they have been expired for a couple months. Not years. And there are some foods, like fresh produce and bread, that will go moldy if you don’t use them in time. Try to check labels regularly, and try to avoid food expiring in the first place.

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Automatic Purchases on Amazon

A few years ago, Amazon introduced a new feature called “Subscribe and Save” to Amazon Prime customers. You sign up to have items delivered to you automatically on a schedule that you choose. They usually offer a discount on each item if you choose to subscribe versus just making a one-time purchase. It’s sold as this super-convenient way to cut down on trips to the grocery store. But in reality, it’s kind of tricking people into spending an unnecessary amount of money. The Motley Fool has an entire article on this. In it, the author admits that they have forgotten to cancel orders, and ended up with items they didn’t really need. So it just ends up going to waste. They also buy things they don’t really need just because it’s discounted, and they actually over-pay on items compared to buying them from other stores that might be cheaper.

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Luxury Makeup and Skincare Products

We now live in an era where women have access to YouTube beauty gurus who will teach us how to do our makeup. Suddenly, everyone has become an amateur makeup artist, and everyone felt the need to shop at places like Sephora or Ulta. But since the pandemic, most women started to wear less makeup. Now that so many people work from home or have a hybrid work situation, we no longer have to look professional on a daily basis. Even though our habits have changed, there may be some people out there who are still over-spending on products. Most people agree that foundation is the most important thing to focus your money on. If you have nice skin, everything else is secondary. A $50 foundation once every 6 months is pretty reasonable. It’s okay to occasionally splurge on good skin care. Almost everything else can be bought from the pharmacy.

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Taking Multiple Trips to the Grocery Store Per Week

Talk about the pot calling the kettle black, because I am totally guilty of this, and so are most Americans. But taking multiple trips to the grocery store is a waste of money for a lot of reasons. First of all, you’re wasting money on gas. Secondly, if you’re doing multiple trips, it becomes a lot easier to buy frivolous things, or snacks that are just going to make you feel bad. If you want to save money, try to be more diligent with writing down a list of exactly what you need. Schedule a time to go, and try to stick to it. If you forgot something, try to pivot and cook something different. Trust me, I know it’s one of those habits that’s nearly impossible to break. But it’s just something to keep in mind.

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Not Making Coffee at Home

Sorry, everyone. I know this is the money-saving advice that everyone hates to hear. It’s so over-used. Millennials have been endlessly shamed for our love of Starbucks and Dunkin. But you’ve got to admit that it’s true. Making coffee at home is a lot cheaper than buying it from the drive-thru. Let’s just do some quick math: If you buy a $4 coffee 5 days a week, that’s $20 per week or $1,040 per year. A lot of people get frustrated by this revelation, because they’re addicted to caffeine, and it feels like it’s “worth it” to treat yourself. I’m right there with you. But most brands have bags of coffee grounds or K-Cups that you can make at home for just a few cents per cup. Even if you just try to cut down to homemade coffee a few times a week, that adds up over time.

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Grocery Shopping Without a Plan/List

Earlier on this list, we already mentioned avoiding grocery shopping while you’re hungry, and trying not to go multiple times a week. This all boils down to one thing: You need a plan. Write down a list of what you need at the grocery store, and how much it should cost. Give yourself a weekly or monthly budget to spend on groceries. Sadly, inflation is a huge kick in the butt when it comes to grocery prices. According to the USDA, food prices have inflated roughly 8%. It could help to switch to making meals with cheaper ingredients like rice and potatoes. In this economy, most of us can’t continue to eat the way we did a couple years ago. If you want to save money, take some more time to plan out what you’re getting before you go shopping.

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Not Paying Your Bills on Time

Nobody is perfect, and everyone makes mistakes. According to the Huffington Post, 35% of people report accidentally missing their credit card payments. It has nothing to do with their income. They simply forgot. You end up paying a $35 late fee, and if it goes on for too long, it might even ruin your credit score. To avoid this, consider signing up for automatic payments. Automatic payments aren’t for everyone. So getting into the habit of paying bills immediately, as soon as you get paid can go a long way. You could even get ahead of your bills – imagine that. Paying early is also great because it gives you a bit of wiggle room in case something goes wrong.

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Using “Retail Therapy” to Feel Better

Retail therapy is the act of buying something in order to brighten your mood. According to WebMD, 62% of shoppers have bought something to cheer themselves up. Shopping is a dopamine hit to the brain. But did you know that your brain gets the same rush of happiness just by window-shopping or browsing online? The act of buying the thing actually doesn’t matter as much as you think it does. In fact, it may lead to feelings of regret later on, and it can become an addiction. Something you can do to curb your spending is to make an Amazon wishlist. When you see something you like, add it to the wishlist instead of buying it immediately. Then give yourself some time to really think about it. If you’re not immediately hitting “buy now” you may realize a few days later it doesn’t feel as important to make that purchase as it did in the moment.

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Never Making Lunch at Home

If you work outside of the home, you already know the struggle of figuring out what to eat on your lunch break. Sometimes, it’s just more convenient to get out of the office to buy fast food and get away from your coworkers for a while. And if you work from home, you might be desperate to get out of the house, and going out to lunch might be one of the only times you get out during the day. However, it’s one of those habits that really adds up in the long run. According to the data, Americans spend anywhere from $2,746 to $9,000 per year on lunch annually. So, depending on your personal habits, you could literally be saving thousands of dollars every year if you were to just tweak your lifestyle a little bit.

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Ignoring Peak Hours

Depending on your plan, the cost of your electricity may be more expensive during “peak hours“. These hours vary from state to state, but they are usually the times that most people are awake and going about their daily lives. And the “off-peak” hours are typically in the middle of the night and early morning. For example, in New Jersey, peak hours are from 9AM to 9PM in the winter time. So it would actually make the most sense to run the dishwasher or washing machine after 9PM. This might not seem like a big deal to some people, but if you could just get into a consistent habit of using electricity late at night or early in the morning, you will begin to see a lower electricity bill each month.

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Throwing Your Receipts Away

A lot of people will not take their receipt when they buy something, no matter how expensive it might be. As someone who worked in retail before, I know this for a fact. And those same people sometimes come in trying to return something without a receipt, even though it’s against store policy. According to a poll by Green America, most people throw away or lose over half of their receipts. That’s fine if it’s for something you know you’re going to use right away, like groceries. But for consumer goods like clothing, books, home decor, appliances, etc. you should always save the receipt, in case you want to return it. This could save you thousands of dollars over time by returning items you actually don’t need.

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Increasing Your Standard of Living

There is a very common saying that you should “live below your means” if you want to be financially secure. And one of the major things we spend our paychecks on is the cost of living. Financial experts say that you should only spend 30% of your income on rent. But in reality, most Americans actually spend closer to 50%. Just because you get a new job with a pay raise doesn’t mean you should immediately increase your standard of living. Take the opportunity to save as much as you can with that extra cash each month instead. Wait to upgrade for the moments when it’s absolutely necessary- like having a kid that needs their own bedroom.

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Smoking Cigarettes or Weed

Just like drinking coffee, people who smoke are fully aware of how much money it costs to keep up with their bad habits. But it’s hard to kick an addiction. The cost of cigarettes has gone up in the past few years, making it nearly impossible for some people to afford anymore. In New Jersey, the average price is $7.88 per pack. Some people need to smoke a pack a day. So that’s $55.16 per week, or $220.64 per month. That’s practically the cost of a car payment. And now that marijuana is legal in many states, a lot of people are getting into the habit of getting high. For some people, getting high on the weekends is much cheaper than smoking daily. But for others, they’re doing both. So the cost truly does add up.

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Drinking Wine With Dinner

It’s funny how divided people seem to be over the prospect of drinking wine with dinner. During my research, I found one claim that drinking wine with dinner will cut your life expectancy by two years. But other articles will say that it’s good for your gut, heart, and stress levels. But you know what else is good for all that? A good diet, and exercise. You can cut wine out of the equation completely, and avoid any risks that alcohol may bring to your life. I used to drink wine almost every night with dinner, too. But over time, I noticed how it made my face look much older. And my stomach was always bloated. Once I cut out alcohol, I looked a lot younger. Not to mention the money I’m saving now. Even the cheap $5-$10 bottles add up.

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Buying Plastic Water Bottles

Plastic water bottles are convenient, especially if you’re on the run. But they’re terrible for the environment, and they’re a product you have to buy every week at the grocery store. Instead of using plastic water bottles, consider buying a Brita filter pitcher. Also think about getting a reusable water bottle to take to the gym or work with you. Depending on your habits, you might save $260 a year if you were buying a $5 pack per week from the grocery store. But the cost is much higher for luxury water brands. If you are buying a $2.50 bottle of Fiji Water from the convenience store 5 days a week, that’s more like $600 a year. That’s a lot of money to pay for something that should be free.

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Paying For Cable

According to statistics, roughly 5 million people are “cord cutting” every year. This is the process of canceling their TV cable services in favor of just using Internet streaming services like Netflix to watch their favorite shows instead. The price of cable has been going down over the past few years, but it still costs an average of $80 per month to have live cable TV added to your Internet bundle. Whereas Netflix is just $10 a month. You would have to do the math with your own cable package, but you could be saving hundreds or even a thousand dollars per year. Streaming is just better in general, because you don’t have to watch ads. And you can watch the next episode and binge-watch an entire series. According to statistics, 73% of Americans admit to binge-watching, with the average binge lasting three hours and eight minutes.

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Never Financially Planning With Your Partner

A lot of people are afraid to talk about money with their significant others, especially when they first start dating. Your partner might be totally unaware of your money habits. But it’s incredibly common for couples to fight over money. And it’s one of the leading causes of divorce. If you want a healthy relationship, it’s crucial to talk about it. Get on the same page with each other about your financial goals. Even if you aren’t married yet, and you have two separate bank accounts, it’s still nice to talk about budgeting. This can help you save money, and it can help you reach your goals like buying a house much faster. If you’re struggling, don’t be afraid to find a self-help book, watch YouTube videos, take a class, or reach out to a friend or family member you know is good with money. They will be more than happy to steer you in the right direction.

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Not Having a Household Emergency Fund

Last but not least is the crucial emergency fund. The rule of thumb is that you should have three to six months of expenses saved for a rainy day. This should be enough time for you to get back on your feet if anything were to happen to prevent you from working. According to Market Watch, the majority of Americans under 35 have just $3,240 saved, while it’s closer to $6,400 for those ages 55-64. That doesn’t count retirement savings, like a 401K. CNBC also reports that 56% of Americans wouldn’t be able to pay for a $1,000 emergency if something came up. Basically, if you’re not prepared, you’re not the only one. But hopefully, with the help of this list, you can change some of your habits and get that emergency fund started as soon as possible.

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