A lot of things can keep us up at night, like the monster under the bed and whatever made that noise just now. But nothing gives us the creeps like financial ghosts—those hidden, often unnecessary, expenses that suck the life from our finances.
These haunted creatures trick us into signing up for free trials and subscriptions that quietly drain our bank accounts. That, in turn, reduces our spending power and keeps us from reaching our goals. These not-so-friendly ghosts show up in many forms, too. Here are a few examples:
- Gym memberships
- Subscriptions for apps, music, entertainment, and games
- Warehouse club and online shopping membership (think Costco, Sam’s Club, Amazon Prime)
- Meal kit and clothing subscriptions
- Premium delivery service subscriptions, like GrubHub+ and Uber One
- Magazines, news services, ad-free podcasts, and that Substack blog you read once
- Long-forgotten free trials
- Transportation passes for a city you no longer live in
Taken one at a time, these expenses aren’t so scary. In fact, you might not even notice the monthly charges for a few dollars here and there. But when you add everything up, you could be spending $1,000 or more every year on things you don’t use.
There’s something strange in your bank account. Who you gonna call?
Now, we’re not saying don’t get a gym membership or download a fun new app. But if you’re paying to go to a gym, you should do exactly that—regularly—to make it worth the expense. And you should be aware that, say, a game subscription for $6.99 a month adds up to $83.88 a year. Is it a ton of money? No, but it’s a total waste if you don’t play the games. To prevent ghosts from haunting your financial health, you need to know how much you’re paying for subscriptions and whether you’re getting your money’s worth.
Let’s go on a ghost hunt
You don’t need to wait for Halloween to get started. Look through your monthly bank and credit card statements to see where your money’s going. You can check your Flagstar accounts anytime online or with Flagstar Mobile Banking. Anything you don’t recognize is a money ghost. If you come across recurring payments for services you don’t use, consider canceling them. Keep hunting for money ghosts every month so they won’t catch you by surprise.
