15 Everyday Expenses That Quietly Cost Retirees Thousands
Every purchase adds up, and sometimes it’s the small ones that eat away at your budget. This is called "invisible spending.”
Invisible spending, which often includes seemingly inexpensive things we buy frequently, takes away from money we could have invested or used to pay off debt. That’s why it is important to regularly review how you spend your money.
Must Read
If you haven’t looked at your spending in a while, chances are you might be making one of these 15 everyday purchases — and getting rid of these expenses can free up space in your retirement budget.
Vet bills can cost thousands — see what pet insurance might cost you
The 15 budget busters
Everyone has their own unique expenses, but these are 15 common budget busters you may see add up over time:
How small changes add up
Spending $5 daily on coffee may not seem like too much money, but cutting it can translate into $1,825 per year in savings. If you put all of that same money into a fund that averages a 10% return over the next 20 years, it would grow to roughly $12,230, even if you don’t invest another dollar.
The savings and compound growth potential gets even better if you look for multiple ways to save money. The reduced phone plan, deleted monthly subscription and drive to the grocery store instead of ordering delivery all add up — and could help get you closer to your long-term financial goals.
Grow your investing confidence with expert-selected stock picks
Treat it like a challenge
Not everyone likes the idea of creating a budget and adhering to its rigid rules, but saving money can be fun if you turn it into a challenge.
A one-week spending purge can be a great way to gamify good money habits. You can challenge yourself to keep your expenses down for a week or go into a store and limit yourself to spending a certain amount.
You can also gamify specific everyday purchases. For instance, you can challenge yourself to make a sandwich at home every day for a month instead of eating out.