3 hidden expenses that may be quietly draining your wallet

You might be spending money and not know it—and that can affect your financial well-being. The culprit? Hidden expenses: subscriptions, fees, and impulse purchases that might seem small but together can add up to more than you might realize.

Improving your money habits—like budgeting for what matters most and saving more for future goals—can positively impact many areas of your life. If you put the time and effort in and make tracking your finances a priority, it can pay dividends down the road.

“One of the keys to finding happiness with money is: You’ve got to stop spending on stuff you don’t really care about in life.” —Brian Ford, Head of Financial Wellness, Truist

1. Sneaky subscriptions

Hidden subscriptions you may not be thinking about can include apps or websites you’re paying for access to, gym memberships, TV or music streaming services, and retail or airline programs. Make sure you’re not paying for any of these if they aren’t providing enough value to you.

There are also different types of subscription boxes for almost everything lately. Are you regularly paying for any, whether it’s for clothing or pet toys? Ask yourself if they’re really worth the money.

“These are the hidden costs you want to look at first because they’re just going to keep hitting you monthly, quarterly, or annually,” Ford says. “Take a look at those subscriptions and say, ‘I know I signed up for that because I was really excited about it, but does it still excite me? Have I been using it? Do I still find value in it?’ Anything that’s recurring that you’re not using—or you use only because you spent money on it—you should cut.”

Possible hidden subscriptions you may be forgetting:

• Software and app fees
• Diet or fitness apps
• Music and video streaming services
• Gym memberships
• Data storage fees
• Monthly boxes
• Free trials that auto-renew as paid subscriptions

2. Unplanned impulse purchases

That cute item at the checkout counter. The social media ad that seems to know exactly which shoes you’ve been talking about. Grocery shopping when you’re hungry. These can all lead to impulse spending, which includes purchases of anything you weren’t already planning to buy. They may seem insignificant during those individual moments, but they can add up over time and may not align with what you care most about.

“Ask yourself: Is this fulfilling an actual need I have?” says Bright Dickson, Truist’s resident expert on positive psychology and co-host of the Money and Mindset podcast.

Ford adds, “We need to be careful of shopping online and be mindful of how easy it is to purchase things with a single click or a swipe. Make sure that we’re allowing some time to ask, ‘Do I really value that?’”

It’s OK to make the occasional convenience purchase—especially if it truly brings you joy or relief. But if it becomes a regular habit, it can move you further away from your goals.

Impulse spending to watch out for:

• Buying something just because it’s on sale
• Grocery items not on your list
• Spontaneous nights out
• Food delivery
• In-game or in-app purchases

3. All the fees

You probably know that if you’re late with a credit card payment or you overdraft from your account, you’ll be hit with fees that just end up costing you even more money. But other hidden fees could be draining your wallet, too.

Those easy everyday charges, like food delivery costs, ride shares, express shipping, or surcharges on concert tickets, can add up over time. You’ll also want to watch out for fees that come attached to certain big-ticket items like travel purchases. Before booking travel through a third-party site, check with the airline or hotel to see if you can save money on fees by booking directly.

The good news is that—if you know about them—you can take steps to avoid or even negotiate many of these fees. You can also shop around for services with the lowest fees—or, even better, no fees at all.

Extra fees you may be overlooking:

• ATM, bank overdraft, or credit card fees
• Investment fees, like administrative or management fees tied to a 401(k)
• Ticket fees
• Surge pricing

Creating a budget can help you stay on top of hidden expenses because it means looking at every dollar you spend. Reviewing your bank and credit card statements to see where your money’s going is a great place to start. You might be surprised by what you find.

One caveat: Not all expenses are bad, even if they’re easy to miss or forget about. Sometimes, they contribute to your core values. Maybe that streaming service pays for some really great shows that you watch with your loved ones. It’s up to you to determine whether something is truly worth the money you’re paying for it.