Leaking Money Series: Part Three - Out of Sight, Out of Mind: The Hidden Ways Money Leaks from Your Wallet

Even if the budget is dialed in, retirement saving is being invested, and the big items are being reviewed…  those items out of sight and out of mind items may be leaking hard earned money.  If left unchecked, it can have long-term consequences, especially for retirement savings. Unlike major financial mistakes, money leaks are typically small, recurring costs that add up significantly over time. Because they’re spread out and relatively minor individually, they rarely trigger alarm bells. A few minutes of awareness and action can save hundreds (or more) over the course of a year!


In this four-part series, we explore hidden ways people leak money and cover specific steps to “plug” the holes. This article covers those “out of sight, out of mind” leaks that most people don’t even think about.

1. Subscription Services

Trial subscriptions that started as free or reduced then quietly updated to the “regular” price are easy to forget about.  And there are so many streaming services that each on their own may be reasonable but when added up become a drain, without even realizing. Premium apps often renew on an annual subscription—those once-a-year charges can slip by unnoticed. Or what about that digital magazine you never read anymore but still pay for every month? With automatic renewals, it’s easy to forget these charges even exist.


Example:


Emma decided to review her subscriptions. 


  • Entertainment Streaming Services: She had seven subscriptions, many of which had been started on a trial that had expired to the regular pricing.  She reduced these down to two saving $128/month
  • Music – between her car and music apps, Emma had four services, only two did she regularly use and one of those had increased quite a bit from her initial signup. She cancelled two and called the carrier for the satellite car radio and was able to reduce the rate by 60% for a total of $38/month.
  • News/Magazines – Emma had three publications, all of which had increased from the introductory rate.  She decided to keep two and cancel the highest priced, saving $39/month. 
  • Cloud Storage – she had three cloud storage subscriptions, two of which she was paying for more storage that needed.  By reducing the storage to what she actually needed, and consolidating down to two storage systems, Emma was able to save $12/month.
  • Learning/Professional Development – Emma was surprised to see two different development apps that had been great at one time, but were no longer used. She cancelled both, saving $6/month
  • Software – Emma had two art creator apps, two office apps, and two financial apps.  She determined all were needed.
  • Gaming – She subscribed to three gaming apps for her kids and one for herself. She narrowed down to one gaming app for the kids and kept hers, saving $27/month
  • Consumables – Emma had multiple subscriptions for household supplies and food items like supplements.  The items were great but her family didn’t go through the items as fast as the items arrived.  She adjusted the time between deliveries and saved $17/month. 
  • Credit Monitoring – Emma had two credit monitoring services. She chose one and saved $15/month.
  • Home Services – Emma had various camera/smart devices. She determined all were worth keeping. 


With all the updates to her subscriptions, Emma was able to save $282/month or $3,384/year.

Individual subscriptions were such a small amount each month.  She was surprised at how much those cancelled or reduced subscriptions added up.

2. Household Bills

With automation, we rarely look at our actual bills anymore.  Has there been an increase in a bill that could be updated?  Or has a jump in price mean there may be a leak or other issue causing an issue? What about services that are no longer used but still being paid for?


Example:


Noah decided to review all the household bills and expenditures:


  • Seasonal – Noah paid gardeners and pest control year-round, but realized that he could eliminate during the winter months.  The monthly price went up, but not as much as paying for the entire year.  He also paid for yard waste year-round but only used it in the spring.  He saved $536/year
  • Trash – Noah never filled the trash can to the top, so he changed the size of the trash container, saving $11/month or $132/year
  • Internet/Cable/Phone – After reviewing his bill, Noah decided to remove his landline, drop cable down to the basic (as he had other streaming subscriptions).  He saved $120/month or $1.440/year.
  • Energy – by automating his thermostat (and having a larger window of temperature) along with being conscious of turning lights out and updating timers for auto lights, Noah was able to reduce his electric bill by $20 on average per month or $240/year.
  • Cell Phone – by shopping around, Noah was able to reduce the family cell phone bill (four phones) down $50/month or $600/year.
  • Insurance – after doing a review of coverage and bundling his car and homeowner insurance, Noah was able to reduce insurance expenditures by $25/month or $300/year.


All total, Noah was able to save $271/month or $3252/year.

3. Banking

Banking fees are another out of sight, out of mind area that can quietly drain money. ATM fees, monthly maintenance charges, credit card interest, annual fees, and overdraft penalties can all add up over time – and are barely noticeable by themselves. Making some small adjustments can plug the leaking holes. 


Example: 


Meet Sophia, a busy professional in her 40s. She hadn’t reviewed her bank statements in a while. When she finally sat down to audit her accounts, she was amazed at what she found:


  • Account Fees – Sophia had two checking accounts and one Savings account at one bank, and another checking account at another bank. She noticed monthly maintenance fees on two of the checking accounts, and a paper statement fee from each bank. Sophia updated her accounts to meet the bank requirements and updated to digital statements.  Sophia saved $34/month or $408/year.
  • ATM Charges – Sophia was using out-of-network ATMs or grabbing cash at the grocery store, a few times per month, both of which added fees.  She switched to using her bank’s app to find fee-free ATMs and only pulled money at grocery stores that did not charge a fee, saving $10/month or $120/year. 
  • Credit Card Balances & Interest – Like many, Sophia had several credit cards, carrying an average total balance of $4800/month.  Two cards with interest rates of 24% and one with an interest rate of 18%.  Sophia consolidated the balance to the card with the lowest interest rate and worked to pay off the cards each month.  After six months, Sophia achieved her goal, and paid all cards off every month going forward, saving $84/month or $1,008/year.
  • Credit Card Annual Fees – Sophia realized she was paying $95 a year for two premium cards she no longer used. She downgraded to a no-fee version, keeping her credit history intact without the annual charge, saving $190/year,
  • Overdraft Fees – After scanning her statements, Sophia spotted two additional “leaks”:  Sophia had averaged one $25 overdraft per month on her main checking account.  She hadn’t even realized it! Sophia created an automatic low-balance alert so she could transfer money if needed, saving $25/month of $300/year.
  • Foreign Transaction Fees – On a trip abroad, the credit card she used added a 1% transaction fee, totaling $50.  For her next trip, she starting using a no-foreign-fee card.


The total Sophia saved by reviewing her bank and credit card statements was $169/month or $2,026/year

4. Unused Gift Cards and Rewards Points

Billions of dollars in gift cards go unredeemed every year. That’s free money going to waste! 


Example: 


Meet Liam, a single guy that didn’t like to cook and a difficult man to shop for.  So, his friends and family gave him gift cards as presents to known restaurants and shops he frequented. Liam also had a rewards credit card that he used, but forgot about the perks.  And to top it off, many of the restaurants Liam frequented had rewards programs.  So, Liam decided to take a look at what he stuffed into a drawer and forgot about.


  • Gift Cards – After opening his drawer, Liam discovered he had been given $350 worth of gift cards to restaurants he frequented that year.  Since he went to those restaurants all the time, using the gift cards saved him money!
  • Rewards Card – Liam went online and checked out what his rewards card balance was.  He typically spent about $10,000 per year on his credit card, and discovered he could exchange those points for a $100 gift card to his favorite home improvement store. 
  • Loyalty Programs – When Liam looked at the programs offered from restaurants and coffee shops he went to often, he found:  The coffee shop he went to during the week had a buy nine get one free program.  That was a 10% savings of $5 every other week, totaling $130/year. And the restaurants he went to weekly all had rewards programs as well, saving him %20 every other month, totaling $250/year.


By simply using what he already had, Liam saved $830 for the year.

The Tally

Many of us can reduce in all of these areas.  Adding up all the savings from each, it is surprising how much money can be saved by reviewing the out of sight money leaks.  In this case:  $9,492!


If just half of those dollars were invested every year at a 6% return, in ten years that $4,746 would be $62,583 and in twenty years: $174,725!!


Formula: FV=P×((1+r)n−1​)/r; Where: FV = future value; P = annual payment ($4,746); r = annual interest rate (6% or 0.06); n = number of years (10) (or 20)


How’s that for some motivation?!


Many people let these “little” things slide because it seems so small, it’s not worth the energy to create savings for just $24.  But adding all these little things up equals a substantial amount of money. It is worth the time!!

Specific Actions to Take – It’s Your Turn

Schedule time to review each of these areas.  It has already been shown that these small savings can really add up.  Do it this week or this month, but do it! We have compiled three handy checklists to help make it easier. Click here to view/download the checklists.

Why Stopping Money Leaks Matters

By taking a few minutes to review your accounts and plug those leaks, you’re reclaiming control over your finances. It’s not just about dollars and cents—it’s about aligning your spending with what truly matters to you.  The time it takes to plug the holes is well worth it. 


Your money should be working for you, not sitting idle or slipping quietly through the cracks. Every dollar has a job to do—whether it’s growing for the future, paying down debt, or investing in the next generation.  By taking the time to plug these “out of sight, out of mind” leaks, you’re turning lazy money into working money—aligned with your goals, your values, and the life you want to build.

Leaking Money Series – Part Four: The Balance of Opposites

September 2, 2025
Welcome to Part 4 of our Leaking Money series: The Balance of Opposites. Here we dive into the everyday spending decisions that can quietly chip away at financial wellness—often without a person realizing it. Trendy vs. timeless. Cheap vs. quality. Fix vs. replace. New vs. used. Keep vs. upgrade. Most people do one or the other all the time. Always buying new, for example, when used or repaired would work just as well.  Most people go about life with whatever the status quo has always been, rather than actively considering other options. It is less about choosing the “cheaper” version of the opposites and more about recognizing when each option will serve best. Rather than money leaking, an active choice is made. Soon, a variety of options are considered and spending becomes intentional vs habitual. And… ideally investing that difference in the future, whether that is debt reduction or retirement. The goal: plug the holes silently leaking money and invest the saved money elsewhere.

Leaking Money Series: Part Two – Shopping: Seven Shopping Behaviors That Are Draining Your Money

By Aaron Picart • September 2, 2025
In this four-part series, we explore hidden ways people leak money and cover specific steps to “plug” the holes. It's easy to lose track of spending when small habits add up. These seven shopping behaviors might seem harmless, but they're quietly draining your money—and could be holding you back from a stronger retirement: Online Social Boredom Retail Therapy Occasion Impulse Envy Status Money has a funny way of disappearing. You work hard for it, save diligently, and plan for the future—but somehow, there never seems to be enough left at the end of the month. This phenomenon is known as "leaking money," the gradual and often unnoticed loss of funds through unnecessary expenses, inefficient financial habits, and lack of awareness. If left unchecked, it can have long-term consequences, especially for retirement savings. Unlike major financial mistakes, money leaks are typically small, recurring costs that add up significantly over time. Because they’re spread out and relatively minor individually, they rarely trigger alarm bells. However, their cumulative effect can be devastating to your overall financial health. Hidden Ways Money Leaks while shopping (and actions to take) There are many reasons we shop: needs, as an event, socializing, boredom, therapy, impulsive, envy, status. And many of these cause money leak. Not the kind you plan for, like groceries or back-to-school supplies—but the kinds that sneak up and chips away at goals. Here are some common shopping habits that might be costing you more than you think:

Leaking Money Series: Plugging the Hidden Holes in Your Finances. Part One – Food

August 7, 2025
What if by making some simple food changes, you could have $62,053 more in your retirement kitty in just ten years? By making simple changes in these five categories, you can make a significant difference. Food Waste Outside the Home Online meal delivery Shopping Composition Shopping Locations Money has a funny way of disappearing. You work hard for it, save diligently, and plan for the future—but somehow, there never seems to be enough left at the end of the month. This phenomenon is known as "leaking money," the gradual and often unnoticed loss of funds through unnecessary expenses, inefficient financial habits, and lack of awareness. If left unchecked, it can have long-term consequences, especially for retirement savings. Unlike major financial mistakes, money leaks are typically small, recurring costs that add up significantly over time. Because they’re spread out and relatively minor individually, they rarely trigger alarm bells. However, their cumulative effect can be devastating to your overall financial health. In this four-part series, we explore hidden ways people leak money and cover specific steps to “plug” the holes. As a bonus, the example savings will be added up for a total amount that could be invested.

Managing Retirement Throughout Your Life: A by Decade Guide to Financial Organization

By Benjamin Eizenga • August 6, 2025
Retirement planning is a lifelong journey that evolves as career, goals, and life circumstances change. Whether just starting a career, in peak earning years, or approaching retirement, taking an organized and strategic approach to managing investments is crucial. This article lays out a roadmap by decade for your retirement journey.

The Cost of Procrastination: Why Waiting to Plan Your Financial Future is Costing You More Than You Think

By Karen Hansen • August 5, 2025
We all procrastinate in some areas of life—putting off that dentist appointment, delaying the gym membership, or avoiding that home repair project. But when it comes to financial planning, procrastination can have serious long-term consequences. The cost of waiting can translate into lost opportunities, higher expenses, and increased stress. So why do people put off financial planning, and what does it really cost? More importantly, how can you take simple steps today to set yourself up for a more secure future? Let’s break it down.

Protecting Yourself Financially from Hackers and Data Leaks: More Than Just Financial Advice

By Karen Hansen • November 5, 2024
When you think about advice from a financial advisor, you probably expect tips on budgeting, retirement planning, or investment strategies. But in today’s digital age, financial security goes beyond managing your money—it also means safeguarding your personal data from hackers and fraudsters.  Cybersecurity may not be the first thing that comes to mind when you think of financial health, but the two are closely linked. A data breach can lead to identity theft, drained accounts, and long-term financial damage. That’s why this article isn’t just about building wealth—it’s about protecting it. Let’s explore how you can defend your finances from hackers, RFID theft, and data leaks, and take steps to ensure your hard-earned money stays safe.

The Power of Financial Compounding: Why Starting Early is Key to a Secure Retirement

By Karen Hansen • November 5, 2024
When you’re in your 20s or 30s, retirement might seem like a distant future, something to worry about later. But the truth is, the decisions you make now can have a massive impact on your financial well-being in the years to come. The key to building a secure financial future lies in understanding one of the most powerful concepts in investing: compounding. In this article, we’ll break down how compounding works, why it’s so crucial to start saving early, and provide examples that illustrate its transformative power. What is Financial Compounding?  Compounding is the process where your investment earns returns not just on the original amount you invested (the principal), but also on the returns that investment has already generated. It’s often referred to as “interest on interest,” and it’s what can turn a small initial investment into a substantial sum over time.

Retirement Planning Push: Time to Review, Reassess, and Realign

By Karen Hansen • November 5, 2024
As you approach your 40s and 50s, retirement is no longer a distant dream—it's rapidly becoming a reality. Whether you’ve been diligently saving and investing for years or just started to take retirement seriously, now is the critical time to review, reassess, and realign your financial strategies. Your future self will thank you for taking the time to make sure you're on the right track. 1. Evaluate Your Current Situation The first step in your retirement planning push is to take stock of where you stand financially. By now, you’ve likely accumulated some savings in a 401(k), IRA, or other retirement accounts. But do you know how much you’ve saved so far and how it aligns with your retirement goals? Example: Let’s say you’re 45 years old with $300,000 saved for retirement. A rough estimate might suggest that you’ll need at least $1 million to $1.5 million to retire comfortably, depending on your lifestyle, health, and desired retirement age. This might seem like a big gap, but with the right planning and adjustments, it’s not insurmountable. Action Step: Calculate your current savings and compare them against a retirement savings benchmark. Use online retirement calculators to get a more personalized estimate of how much you should have saved by now and what you’ll need to save in the coming years.

Understanding Inflation and Protecting Your Retirement Savings

By Karen Hansen • November 5, 2024
Inflation is a term we hear often, especially when the prices of goods and services seem to creep upward over time or the size of a commodity gets smaller for the same price. But what exactly is inflation, and how can we protect our retirement savings from its effects? To build a strong retirement plan, it's crucial to understand how inflation works, what constant dollars mean, and the strategies you can employ to safeguard your hard-earned savings. How Inflation Works Inflation refers to the general rise in prices over time, which reduces the purchasing power of money. In simpler terms, the dollar in your pocket today won’t buy as much in the future as it does now. One of the causes of inflation is the imbalance between supply and demand in an economy, often fueled by factors like increasing costs of production, labor, and demand for goods. Economists generally distinguish between two types of inflation: Demand-pull inflation occurs when the demand for goods and services exceeds supply, driving prices higher. Cost-push inflation happens when the cost of producing goods increases, prompting businesses to raise prices to maintain profit margins. Both forms lead to the same outcome: your money becomes less valuable over time. Inflation is often measured using the Consumer Price Index (CPI), which tracks the price changes in a basket of commonly used goods and services, like cereal, lumber, toothpaste, medical costs. The Concept of Constant Dollar

The Importance of a Will: Protecting Your Children's Future

By Karen Hansen • September 3, 2024
As a parent, your primary concern is the well-being and future of your children. You work hard to provide for them, nurture them, and ensure they grow up in a safe and loving environment. But have you considered what would happen to them if you were no longer around? It’s a difficult thought, but planning for the unexpected is one of the most important responsibilities you have as a parent. This is where having a will becomes critical—especially when it comes to the guardianship of your children.