The 5 Stupidest Things Americans Overspend On (Hint: Coffee Isn’t One of Them).

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I’m a massive coupon/savings nerd, and an embarrassing amount of my time is spent talking to people to find out how much they’re spending.

In my experience, the average American is overpaying for things on an almost daily basis.

Here are the 8 worst culprits for overspending (and how you can save money by avoiding them):

1. Auto insurance.

Believe it or not, the average American family still overspends by $417/year¹ on car insurance.

Here’s how to quickly see how much you’re being overcharged (takes maybe 30 seconds):

• Pull up Coverage.com – it’s a free site that will compare prices for you
• Answer the questions on the page
• It’ll spit out a bunch of insurance quotes for you.

That’s literally it. You’ll likely save yourself a bunch of money.

Here’s a link to Coverage.com

2. Online Shopping

You might be surprised how often you’re overpaying on Amazon and elsewhere.

Big stores like Amazon know that no one has time to price shop through dozens of sites, so there’s often no incentive for them to offer bargain prices.

I typically hate browser extensions with a fiery passion, but if you don’t have Capital One Shopping installed yet, do yourself a favor and grab it.

When you shop online (on Amazon or elsewhere) it will:

• Auto-apply coupon codes to potentially help save you money
• Compare prices from other sellers to help make sure you’re not missing out on a better deal

Here’s a quick example of how it works:

Savings will vary, this is just an example, of course.

Whenever the extension finds an available discount, you’ll see a little savings alert pop-up. For example, here you can save $32 on this air fryer.

Here’s a link to install Capital One Shopping, if you’re interested.

3. Paying off credit card debt on your own (when some companies are willing to help).

If you’ve got $10k+ in unsecured debt (think credit cards, medical bills, etc), you could use a debt relief program and potentially reduce it by around 23% (on average).

Here’s how to quickly see if you qualify for debt relief:

• Head to National Debt Relief’s site here
• Answer the questions on the page
• Find out if you qualify

Simple as that. You’ll likely end up paying less than you owed and could be debt free in 24-48 months.

Here’s a link to National Debt Relief.

4. Not getting a financial advisor.

Most people don’t have one, and it’s typically a huge mistake.

Sure, you can manage things on your own if you want to, but most people don’t have the time to actually do things right. There are huge benefits to having somebody pay attention to your money all the time.

• People with financial advisors tend to beat the market by ~3%/year (according to a 2019 Vanguard Study). That can make a huge difference over time.
• But more important: a good advisor will handle ALL of the annoying retirement stuff & bizarro tax implications you would have never thought of

If you don’t know a financial advisor personally, use a comparison site (like Datalign) and find somebody near you that has good reviews.

Or if you want something easier, here’s a quiz you can fill out that can find an advisor/planner based on your reqs.

5. Not tapping into your home’s equity.

If you own your home but are low on cash, you might want to look into a HELOC (home equity line of credit). It’s more/less a credit card, but you borrow against your home’s equity.

They usually have lower interest rates and more flexible terms that a typical loan would.

Here’s a calculator you can use to see how much money you could access: link.

6. Paying for subscriptions you don’t even use.

We’ve all signed up for free trials and forgotten to cancel them. Stop paying for services you aren’t using!

Take a minute and get yourself a good cancellation app: I like Rocket Money (link here).

It’s an app that will put together a list of your subscriptions so you can pick/choose which ones to cancel.

They also have a premium service that will cancel them for you, if you’d like.

Here’s a link (it’s free).

7. Home repair bills (let a company pay them for you instead).

Picture this: your trusty furnace suddenly throws a tantrum in the dead of winter, leaving you shivering and facing a repair bill that could cost you way more than you anticipated.

If you had a home warranty, you could be covered the next time something breaks down. It’s like having a safety net for your home (think plumbing, electrical, appliances, etc).

If you don’t have one yet, Choice Home Warranty is one of the bigger companies out there.

Bonus: home warranty companies usually have qualified, pre-vetted maintenance and repair workers ready to get the job done (which is one less thing to worry about).

If you’re interested just enter your zip code here to find a home warranty plan. It could save you a bunch of money the next time something breaks down.

8. Not using an ad blocker.

If you aren’t using an ad blocker yet, I am begging you to try one. I am not exaggerating when I say it will change your life.

A good ad blocker will eliminate virtually all of the ads you’d see on the internet.

No more YouTube ads, no more banner ads, no more pop-up ads, etc. It’s incredible.

Most people I know use Total Adblock (link here) – it’s $2.42/month, but there are plenty of solid options.

Ads also typically take a while to load, so using an ad blocker reduces loading times (typically by 50% or more). They also block ad tracking pixels to protect your privacy, which is nice.

Here’s a link to Total Adblock, if you’re interested.

9. Overpaying on home insurance

Switching home insurance will often save you more than switching auto policies (I’ve heard of people saving $1k per year by switching).

Here’s the home insurance comparison site I typically use: link.

10. Not getting paid to test games ($20/day).

Apps like Freecash and Testerup will pay you to test new iOS/Android games on your phone.

Some games pay as much as $350 to testers. Here are a few examples right now (from Freecash‘s homepage):

You don’t need any kind of degree or any prior experience: all you really need is a smartphone (Android or IOS).

If you’re scrolling on your phone anyway, why not get paid for it?

I’ve used both Freecash and Testerup in the past – they’re both solid, but Freecash probably pays slightly more in my experience. (Freecash also gave me a $5 bonus instantly when I installed my first game, which was nice).

11. Not getting a better cash back credit card (when you could earn up to 5%, depending on what you buy).

If you’re dealing with credit card debt, a 0% intro APR credit card could give you some much-needed relief. It’s actually a smart way to tackle your balances without the added weight of interest slowing you down.

On top of that, these credit cards offer an impressive up to 5% cash back on qualifying purchases.

Whether you’re in the midst of paying off debt, or just looking for a smarter way to shop, these cards are pretty great options. You might be surprised at just how much you can actually save, check it out here.

12. Getting overcharged on your monthly bills.

I’d suggest using something like BillChecker.org once a month or so. It’s a site that asks you questions about your bills, etc., and it tries to find ways to save you money.

It typically takes 30 seconds or so, and is pretty effective (no contact info required either, which is nice). You might be surprised how often you’re unknowingly overpaying for things.

Here’s a link.

13. Not getting rid of your enormous monthly credit card bill.

Here’s a simple method a lot of borrowers use to get rid of their credit card debt. 

It’s based on a strange quirk about interest rates:

– The average credit card interest rate is ~27%¹,

– The average rate for a personal loan: only ~12%².

See what I’m getting at here?

If you get yourself a personal loan and use that cash to pay off your CC debt, you can (potentially) save yourself a ton on interest payments.

It certainly won’t work for everybody (it depends on your credit score, etc.), but it’s effective for a lot of families. Here’s a free site you can use to see if you qualify, and what sort of interest rate loan you could qualify for.

This is a pretty common method now: around 23 million Americans have personal loans (usually for debt consolidation).

14. Missing out on tons of cash back.

If you haven’t switched your credit card lately, there’s a good chance that you’re missing out on a bunch of cash back (cash back rates are much higher than they used to be).

Two of my favorites that are worth looking at:

– 3% cash back at grocery stores (excluding superstores, like Walmart and Target), dining & popular streaming services and 1% on everything else – Capital One Savor Cash Rewards

– 1.5% cash back on everything –  Capital One Quicksilver Cash Rewards

15. Skipping major discounts (for just $16/year).

You’ve probably heard of AARP, but here’s something I didn’t know until recently: you don’t have to be over 50 to join. While a few perks are reserved for the 50+ crowd, there are still plenty of benefits worth checking out.

They offer discounts on a ton of stuff – dining, travel, gas, groceries, entertainment, etc. So if you like saving money (who doesn’t?), it’s worth checking out.

Membership is ~$16/year, but if you make the most of their offers, it pretty much pays for itself. 

Plus, they have some solid resources and tools that can come in handy for things like managing finances or planning for the future.

Not saying it’s for everyone, but if you like getting a good deal, it might be worth a look. Head to their site here.

16. Not getting paid to test games.

If you’ve ever wondered if those “get paid to test games” apps are real, you’re not alone. Most of them feel sketchy, but there are a few legit ones that actually work.

One worth checking out is Bonus Bucks. The process is simple: sign up, pick a game, spend 5-10 minutes completing a quick task, and cash out whenever you feel like it via PayPal.

Here’s how it works: when you play free mobile games, developers make money from ads. Bonus Bucks just shares some of that with you.

No, it won’t make you rich, but if you’re already gaming on your phone, turn it into a little side hustle.

Sign-up here because you might as well get paid for doing what you’re already doing.

17. Missing out on $1,000+ a year because you weren’t in the loop.

The internet is huge, which means there are amazing money-making opportunities that pop up almost every day.

But most of them expire or sell out so fast that the public doesn’t have a chance to hear about them.

For example: back in September, there was a company offering $2,500/month for someone to literally watch shows on Netflix. Unsurprisingly, the role was filled so fast before most people knew it existed.

What if you could get access to great deals/money-making opportunities before other people do?

I spend every day looking for great ways to save/earn money, and whenever I find something really lucrative, I send out a text to our Betterbuck VIPs list first. (You can join it below, it’s 100% free)

It’s a great way to get tips about time-sensitive opportunities and deals before the rest of the country has time to hear about them.

You can join the list here:

That’s all (for now).

Those are my top savings tips for the time being, but I’ll keep adding to this article as I find new tips for you.

Thanks for reading!

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*Clients who are able to stay with the program and get all their debt settled realize approximate savings of 46% before fees, or 25% including our fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.” 

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