Small expenses are eating away your money

Small expenses are eating away your money

Small expenses are eating away your money

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The millionaire we all have inside is normally not the same as when we see our account balance. Falling for splurges like changing phones every year, buying an expensive coffee every other day and even an occasional Uber or taxi ride when you’re running late is what’s getting in the way of a wealthier you.

Small purchases are those we consider insignificant, but the important thing is that they are so many and so small that we may not notice them, but then, at the end of the month, they become an amount that could’ve been a weekend getaway or a down payment for a new car. And even if small purchases are everywhere, it’s very easy for them to go unnoticed and become an important money drain.

According to calculations from personal finance experts, small purchases may represent up to 12% of a worker’s income. These expenses are everywhere and have to do with our day-to-day: spare change rounded up at the grocery store, a loose cigarette bought on the street, a cup of coffee, chewing gum, a bag of chips, etc.

All these small leaks of money affect your finances significantly; if you’re a worker making $10,000 a month, we’re talking about $1,200 monthly, close to $15,000/year that you could be saving for some vacations abroad, to leave your parents’ house or have an early retirement.

And this only refers to the spare change in your wallet, but there are other small expenses related, for example, with interest payments on your credit cards, a gym subscription you’re never using or charges from withdrawing money from an ATM of another company. These are also eating away your dreams of becoming a millionaire.

  • Purchases made with your credit card without interest: if you’re organized, plan your expenses and are disciplined with your payments, you shouldn’t worry. But if you have an emergency or simply forget and don’t make a payment on time, interest will generate and represent an additional amount you have to pay.
  • Credit card charges: remember some cards charge annuity, consulting your balance, replacing a lost card, withdrawing at another company’s ATM.
  • Paying your utilities at a bank or convenience store: some of these places charge extra for paying services and utilities. Take that into consideration.

How to eliminate small expenses:

  • Cancel any subscriptions you’re not using: if you have a lot of paid apps in your phone but don’t use them, or have a streaming service that’s not being watched, stop any automatic payments. Perhaps it would be better to make direct payments when you want to use them.
  • Be conscious: program alerts for online payments, check your balance one a month or use an app like Paybook that lets you track all your expenses.
  • Consider these expenses in your monthly budget: sit and make a plan considering income and expenses, and assign an estimate to unforeseen future expenses.
  • Reduce the frequency: there may be days when you truly need to take a taxi or eat out, but try to keep them at a minimum.
  • Avoid sales: if you haven’t planned for the expense and don’t need them, why buy them? Even if there’s an 80% discount, remember impulsive purchases are what’s keeping you poor.


Keeping track of expenses will always make your life better, many of the biggest problems are the money, make sure so you have the literal solution in your hands. If you know someone who has some problems with money, maybe you can share this article.