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10 Expensive Habits!

Let’s face it, we all have vices! From morning coffee to eating out to shopping, we all have some type of activity which takes money out of our pockets. However, when these “harmless” habits begin to drain our cash flow in ways we never considered possible, then it’s time to reconsider the value of such activity.

With this in mind, here’s 10 expensive that probably cost more than you think.

1. Drinking

• According to available data, the average American spent approximately $583 on alcohol in 2024.
• Keep in mind, that’s just the average.
• Obviously, costs associated with one’s alcohol use vary widely depending upon how much as well as where it is consumed.
• For individuals who like to frequent trendy bars, for instance, costs associated for drinking would be much higher than someone who’s a regular at the local “dive” bar.
• Nonetheless, let’s use the example of someone who likes to visit trendy, upscale bars where the cost of a cocktail may be somewhere around $10.
• In this instance, having just two drinks every weekend equates to $1,120 per year.
• Even if you don’t go out and just drink at home, a weekly 12-pack of beer costs just about the same.
• Again, this is at the low-end of the scale and, again, depends upon your consumption habits.

2. Smoking

• Depending upon the state in which you live, the cost for a pack of cigarettes can vary.
• In California, for example, the average price is $10.
• Keep in mind, this is the average price which, of course, is dependent upon the brand of cigarettes you prefer.
• Using this average though, if you were someone who smoked one pack per week it would cost you roughly $560 per year.
• For those with a pack-a-day habit, that equates to approximately $304 per month and an astounding $3,650 per year.
• Over five years, that would be more than $18,000, which is easily enough for the down payment on a home.
• Think about it!

3. Eating Out

• Whether done for convenience, the joy of hanging out with friends and loved ones, or even the desire to try new restaurants, eating out is a common pastime in our country.
• On average, Americans spend approximately $7,672 per year on food away from home.
• Even “fast food” restaurant costs have gone up with the average, single person meal being $12.50.
• Obviously, this is not a big deal for those who do not eat fast food on a frequent basis.
• For the person who eat fast food for lunch during the typical work week, however, this equates to $62.50 per week, just under $300 per month, and roughly $3,500 for a year.
• So, whether it be an annual fast food cost of $3,500 or the average annual spend of $7,672 for eating out, think of what could be done if some of that money was saved and spent elsewhere.

4. Using Online Food Delivery Services

• In addition to eating out for convenience, the use of online food delivery services is something that has become common in recent years.
• Whether it’s Uber Eats, Instacart, Grubhub, DoorDash or Postmates, the convenience of having the food you desire delivered directly to your doorstep at the touch of a button is quite appealing.
• It does, however, come at a cost!
• Indeed, people who use such delivery services spend, on average, $36 per order.
• That’s per order, per person, not per delivery!
• So, a person who does this once a week is paying approximately $168 per month.
• Does that sound expensive?
• Well, it is, because the cost includes a service fee, delivery fee, as well as gratuity.
• Take that monthly cost of $168 and that’s more than $2,000 per year.
• And, again, this cost doesn’t include the spouse and kids!

5. Buying Coffee

• The popularity of Starbucks, Dutch Bros., Peet’s Coffee, and Dunkin’ Donuts, among others, has brought the popularity of coffee drinking to an all-time high in our country.
• For some, a daily caffeine fix is a necessity while for others it is just a way to enjoy the social aspects of having a cup of coffee with someone.
• Whatever the motivation, while the cost for a single cup of joe may not seem like much, one thing is for certain – it can certainly add up over time!
• Take, for example, a single 16-ounce cup of coffee from Starbucks which costs around $2.50.
• Seems harmless, right?
• But over a year, that morning coffee now accounts to $912.50 out of your pocket.
• And that’s just for a basic cup of coffee and not one of the more exotic offerings, which only adds to the cost.
• Indeed, even if you “reward” yourself with a $6 coffee twice per week, that still equates to more than $670 per year.
• Hey, there’s a reason the global coffee market earns hundreds of billions of dollars each year, as there are plenty of people contributing beyond the examples listed above.

6. Wasting Food

• Did you know the average U.S. household wastes 31.9% of the food it buys?
• That equates to almost $300 billion worth of food wasted every year, or roughly $2,300 per household!
• It doesn’t have to be this way.
• Wasting food is, undoubtedly, one of the worst habits to fall into since you’re literally throwing your hard-earned cash, along with the food, into the garbage.
• And, since most people don’t even think about it, it’s easy to ignore.
• Remember, there’s a reason our parents always ate leftovers – it saved money!
• It wasn’t a bad idea then, and it’s not a bad idea now!

7. Frequent Beauty or Personal Care Purchases

• Spending money on your favorite skincare products and trips to the nail salon might be a staple in your beauty maintenance routine, but they’re certainly not cheap.
• Indeed, according to data from Advanced Dermatology, the average American spends around $500 per year on skincare products, with women spending more than men at approximately $600 annually.
• Monthly trips to the nail salon only add to this expense, with a manicure and pedicure costing, on average, $115.
• Combine these costs with skincare and you’re looking at an annual expense right around $2,000.
• Yes, looking good is hard work and expensive but don’t let it eat up your savings.

8. Retail Therapy

• Simply stated, we all respond to stress and adversity differently.
• So, while some people may go the gym, take a car ride, or head to a place of solitude, others respond to such moments by going shopping.
• Keep in mind, we aren’t talking about the type of shopping needed for daily essentials but rather the type of activity you do when you’re sad, stressed, or just plain bored.
• In other words, impulse buying!
• Regardless of the cause, the short-term fulfillment received from impulse shopping can have more severe, long-term consequences.
• According to recent data, Americans spend an average of $150 per month on impulse purchases.
• Obviously, this number will vary depending upon how you, personally, respond to anxious situations but if you are like most Americans, approximately $1,800 of your income each year goes towards purchases you can really do without.
• Be aware of this, as it could save you some money!

9. Guzzling Gas

• Unlike retail therapy, gas for your car is a necessity.
• While gas prices vary depending upon where you live, the average American spends approximately $200 per month on gas.
• For those in California, where gas prices are generally the highest in the country, this monthly figure is roughly $237.
• So, for Americans and Californians this equates to $2,400 and $2,844, respectively, in a typical year.
• Mind you, how much you spend is dependent upon the distance of your commute to work, frequency of driving, car use for leisure activities, etc.
• Nonetheless, strategically thinking about your vehicle use is an important step towards controlling the amount of money needed to do so.
• From mapping out the shortest routes to your destinations to running multiple errands at once to carpooling, there are definite ways to control your gas intake and better your pocketbook.

10. Not Paying Off Your Credit Card

• Having access to credit via a credit card can be a good thing.
• Not paying off your monthly credit card balance or making late payments, however, can have a dramatic impact your money.
• Simply stated, not paying off a monthly credit card balance in full results in APR (Annual Percentage Rate) charges, which grow monthly thanks to compound interest.
• For example, if you have a credit card balance of $6,194, which is the average credit card debt for Americans, at a rate of 16.61%, which according to the Federal Reserve is the average credit card APR, making minimum payments would result in the following dollar amounts being paid.
• Pay off $6,194 – $0 of accumulated interest
  • Minimum payments for 5 years – $2,264 of accumulated interest
  • Minimum payments for 10 years – $6,540 of accumulated interest
  • Minimum payments for 15 years – $10,657 of accumulated interest
• What this information shows is that after 5 years interest surpasses the initial credit card balance.
• And should you make a late payment, then expect to pay even more due to fees.
• Of course, you can avoid all of this by simply paying off your monthly credit card balance!

Bad habits are not only hard to break but they’re expensive! That’s why it’s important to remember the best things in life – walking, jogging, hiking, biking, swimming, exercising, playing in the yard, hanging out with loved ones, conversation, worship, smiling, etc. – are free. So instead of wasting your time and money toward something detrimental, be sure to channel those resources to things that better your physical health, mental well-being, and financial stability. You’ll be glad you did!

Source: https://www.creditrepair.com/blog/finance/what-are-your-habits-costing-you/