Do you ever wonder where your money is going? It seems like every month, expenses eat away at our budget. But the truth is that Americans today are paying for things that simply didn’t exist a short time ago.
Of course, we need the lights on and utilities to work, and even the car note. But it’s those “other” bills that seem to be sapping our paychecks. Where did they come from?
These Expenses Didn’t Exist 20 Years Ago
Let’s look at some of the bills that have popped up out of thin air in the last 20 years.
1. Baggage Fees
In 2008, American Airlines introduced a $30 fee for your first checked bag. That set off a chain reaction among the airline industry and baggage fees that has been with us ever since. Not only that, but snacks, pillows and the like were free years ago — but not anymore.
2. Your Streaming Bill
Related to your data plan is your streaming bill. Back in the day, Netflix used to mail you DVDs. Now, the streaming service — and a host of others — are selling subscriptions for anywhere from $5.99 to $50 a month.
For context, you may be trading your cable or satellite bill for two or three streaming services, but as we’re about to see, those subscriptions extend far beyond TV…
3. Music Subscriptions
Sad to say, it costs money to listen to good music now. Of course, you could tune in to the radio all day, but to get the highly curated audio experience we’ve all come to know and love comes with a price tag. Your monthly Spotify or Apple Music account costs you anywhere from $4.99 to $9.99.
4. Coffee
Yes, having a morning coffee has been a ritual for years and years, but with the rise of Starbucks and other artisan coffee establishments, a freshly brewed cup has become a recurring bill for many of us.
According to an Acorn Money Matters report, the average American spends approximately $1,100 annually ($3 each day) on coffee. No wonder Starbucks is reported to make $61 million a day.
5. Ridesharing
Ridesharing has become a common expense for people in big cities, especially millennials who want to bar hop or avoid parking fees downtown. But Americans who use Uber and Lyft spend $22 on an average trip, according to one report. If you rideshare twice times a week, we’re talking more than $240 a month.
of course, that money could be offset by the amount you save on a new car note or taxicab, but the fact remains, ridesharing is an expense we didn’t have years ago.
6. Bottled Water
It’s true people have been drinking bottled water for a long time, but its status at the top of the food chain has only taken hold in recent years.
That means that each year, U.S. consumers spend an average of $100 per person on bottled water. Add other members of the household and this figure goes way up.
Takeaway
So what’s the point in listing these recurring expenses? It’s so you can see that you may be able to save some of your hard-earned money if you took steps now to invest what you spend on some of these items. Need help? The first thing you need to do is create a budget.
Need some help? You can save money with these tips.
Know of any other expenses that have arisen in the last 15 years? Let us know in the comments!
Interested in other ways to save or make money? Check out our Money Section:
More Articles Like This From AtlantaFi.com: