15 Everyday Purchases That Secretly Drain Retirees’ Wallets

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.

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.

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The 15 budget busters

Everyone has their own unique expenses, but these are 15 common budget busters you may see add up over time:

1. Daily coffee runs: Buying coffee out everyday instead of making it at home can turn into a significant amount of spending over time. Try swapping your latte from a coffee shop for brewing at home to see what difference it makes for your budget.
2. Bottled water instead of filtered tap: Filling a reusable bottle with filtered tap can save money instead of buying new bottled water each time you need it.
3. Premium cable or streaming bundles: There's a chance you don’t need all of those channels you're paying for, and can downgrade to a more affordable option while keeping the channels that you watch.
4. Overpriced cell phone plans: Check your cell phone plan and see if you can find a more affordable carrier or a cheaper plan with your current carrier.
5. Restaurant meals: Cooking instead of eating out can save a lot of money. Try saving your trips to restaurants for special occasions.
6. Extended warranties: You may not need an extended warranty for every expensive item you buy. Opting out of extended warranties can save a lot of money in the long run — though you’ll want to do some research to make sure forgoing one makes sense for your specific purchase.
7. Name-brand purchases: Buying cheaper brands can often give you the same quality items at a lower price.
8. Gas station snacks: Try bringing your own food instead of buying overpriced snacks on your next drive.
9. ATM convenience fees: Avoid using ATMs that aren’t in your bank’s network, and try to carry cash or a credit card so you can forgo withdrawing from an out-of- network ATM.
10. Grocery delivery markups: Getting your groceries is convenient — but it can also be a lot more expensive than heading to the store yourself.
11. Monthly subscriptions: You may be paying for subscriptions that you don’t use anymore without realizing it. Check your spending statements for current subscriptions and remove the ones that you aren’t using.
12. Car washes and detailing: Consider washing your car yourself instead of paying someone else to do it.
13. Late credit card payments: Credit cards have high late payment fees. That’s why you should aim to only spend money on your credit card that you can pay back at the end of the month.
14. Overtipping: Familiarize yourself with tipping etiquette before automatically hitting a tip button on every purchase.
15. Pricey greeting cards and gift wrap: You don’t have to go over the top with greeting cards and gift wrap during the holiday season. Affordable options get the job done, as does getting creative by making cards yourself.

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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.

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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.