Disclaimer: This post may contain affiliate links. This is one way that bloggers make money, but it is at absolutely no extra cost to you if you choose to make a purchase based on my suggestions! If you would like to read more about how this works, check out my Disclosure Policy!
There is a ton of financial advice available on the internet. People will tell you that you absolutely need to cut out coffee or takeout. Heck, even I can come off that way during a No Spend Month.
But that is NOT the point of budgeting. Budgeting does not mean no fun. In fact, I firmly believe that in order to have a good relationship with your money, that you should have some fun spending money.
If you don’t have a budget at all, and are in desperate need of some money management, I have a free budget workbook to get you started. Or I have a FULL Savvy Budget Workbook if you are ready to dive in head first!
Here are the expenses that I absolutely believe should be cut from your budget!
1. ATM Fees
I was absolutely shocked to find out that in 2021, there are still ATM fees. It seems like it would be a thing of the past by now! But this is one of the biggest things that I believe should be cut from your spending. According to Bankrate, the average ATM Fee was $4.64 in 2020.
Here are a few tips to prevent paying ATM fees
- If you are going to an event, try to bring cash even if you think you will be able to use your card.
- Use your phone to find the nearest bank compatible ATM
- Know which banks you bank will “forgive” your ATM fees
- Decide if you really need to spend money on the item
- If you are with friends/family, borrow cash from a friend and Venmo them ASAP.
- Use Cashback when making a purchase at grocery stores (A purchase you were already going to make otherwise you are still paying extra for your money.)
2. Overdraft fees
Overdraft fees are ABSOLUTELY the worst thing. As if not having money isn’t bad enough, adding a fee on top of not having the money is a major kick when you are already down. I know how frustrating it can be because I have had seasons where I have been there. According to Forbes, banks charged $12.4 Billion in overdraft fees in 2020, with the average overdraft fee being about $24.
Here are a few tips to cut out overdraft fees:
- Know your banks policy for overdraft fees
- Keep a decent buffer in your account
- Turn on a low balance alert for your accounts
- Set up an connected account that automatically withdraws money when you overdraft
- IF you have spending under control, a line of credit on your bank account MIGHT be an option
3. Late fees
I think we can all agree late fees are the worst. I have found that most of the time when I get a late fee it is purely because I failed to plan or just go in to make the payment.
A few ways to cut out late fees:
- Set most of your bills up on auto pay just in case you forget to make the payment (most of the time you can still pay early without being charged twice, but make sure you read it carefully)
- Set up your bills on a monthly calendar so you know which bills to pay with with paycheck
- Get one month ahead on expenses so you can pay your bills earlier than they are due
- If you do get charged a late fee, call to ask if they will refund it. They are usually willing if it is not a common occurrence for you.
- Turn notifications on or put all of your bills into your phone calendar to remind you a few days before each bill
4. Bank fees/transaction fees
We paid a transaction fee a few months ago and I was so sad about it. One of my savings accounts only allows you to withdraw from the account so many times in a 30 day period before they charge a fee for transferring.
A few ways to prevent transaction fees:
- Knowing your bank restrictions is the number one way to prevent these.
- Limiting the amount of times that you transfer money around (try to make it a habit of doing it 1-2 a month or only on paydays)
- Don’t transfer too much money to savings if you might need it in a shorter period of time
- Keep a buffer in checking for things that might come up
5. Credit Card Interest
This one is a little more debatable, but for the best money management, credit cards should only be used responsibly. The best tips to using credit cards is to pay them back every month and not carry a balance on them. For example, if you use your credit cards on restaurants for a month and you spend $500 on restaurants, with interest you are now paying at least $620 for the same $500 dining experiences (based on 24% simple interest.) I do understand that when it comes to lack of income
A few tips to cut out credit card interest:
- Only put what you know that you can pay back on a credit card
- Freeze your credit cards in a block of water until you think you can use them again
- Cut up your credit cards. If you need them/want to use them again, you can call your bank to be issued a new one.
- Make a credit card payment as soon as you swipe your card (forcing yourself to only swipe what you can pay)
- Pay your credit card off in full 2-5 days before your due date.
- Set a really clear, realistic budget for spending
- Try cash envelopes to reduce spending
Call to ask if fees can be waived
Other that interest, most of these things can be waived if you call and ask. They won’t waive them every time, so don’t make a habit asking for forgiveness later! But a 5-10 minute conversation on the phone can save you tons of money later. There are tons of scripts online to help you know what to say when it comes to getting fees forgiven! Here is a script that you can use from Yahoo.
I am definitely not one for judgement on what other people spend their money on. Every person has different things that they value and bring them joy. But I think it is safe to say that late fees and overdraft fees only bring joy to big banks.
If you know that a lot of these things could be eliminated from your budget by just being more mindful and cutting your spending, I challenge you to download the Free Mini Budget Workbook below to get a great grasp on your spending and where your money is going!
What other things do you you think should be cut from EVERYONE’S Budget?
