With the arrival of a new year comes the opportunity for fresh resolutions: commitments to exercise more, eat healthier, save money, and eliminate our least productive habits. A significant number of these habits revolve around financial decisions.
If you’re aiming to manage your finances better in 2026, it’s time to reevaluate your spending habits. Our team at GOBankingRates consulted various financial experts to identify unnecessary purchases that can drain your wallet. As we bid farewell to 2025, here are 25 things to stop wasting your hard-earned money on this year.
1. Tempting Deals
Melanie Musson, a finance expert, emphasizes the importance of resisting the urge to buy items simply because they are on sale. “If you don’t need it, a lower price won’t make it a necessity,” she advises. Focus on investing in items you genuinely need or want.
2. Clothes at Full Price
Musson also suggests avoiding the purchase of new clothing at full price. “Clothing typically sees steep discounts within just a few months,” she points out. If immediate purchase isn’t necessary, wait for sales, often saving around 20%.
3. Name-Brand Groceries
Why spend more on name-brand groceries when store brands provide comparable quality? Musson asserts that opting for store labels can lead to significant savings on everyday meals without compromising taste.
4. Lunches Out
Eating out for lunch can seem convenient, but Musson urges to reconsider: “$10 spent on lunch twice weekly can add up to hundreds of dollars by year-end.” Bringing homemade lunches can greatly enhance your savings.
5. Fad Beverages
Each year introduces new trendy drinks. Musson advises avoiding these special soda splurges that can cost upwards of $5 each, highlighting that these expenditures can quickly become habitual and costly.
6. Extended Warranties
According to Julien Brault, founder of MooseMoney, extended warranties often cost nearly as much as a replacement and are rarely utilized. They typically cover products that don’t fail during the warranty period.
7. Cheap Clothes
While a $10 shirt may feel like a steal, Brault cautions that fast fashion often leads to more frequent replacements due to poor quality. Investing in a few higher-quality pieces proves to be more cost-effective in the long run.
8. Premium Gas
If your car runs efficiently on regular fuel, avoid the pricier premium gas. Brault points out that unnecessary upgrades at the pump add financial strain over time, ultimately costing more without enhancing performance.
9. Health Trends
Brault warns against the lure of health products promising quick fixes, noting that people often collect a slew of unused miracle items. Instead, focus on maintaining a balanced, sustainable health regimen.
10. Dollar Store Splurges
Shopping at dollar stores can feel harmless, but Brault suggests being cautious about accumulating random items. “Those low-cost purchases can add up quickly and strain your finances,” he says.
11. Trendy Beauty Products
The allure of the latest beauty trends can lead to impulse buying, ultimately filling drawers with products that fail to deliver. Brault advises focusing on tried-and-true items that fit your routine.
12. Seasonal Knick-Knacks
Constantly purchasing festive items keeps you locked in a cycle of unnecessary spending, warns Brault. Avoiding trend-driven decorations can save money and clutter in your home.
13. Clothing for One-Time Events
Brault notes that trendy outfits for rare events often linger unworn in your closet. Rather than splurging on costly items for a single occasion, consider renting or borrowing.
14. Pricey Bottled Water
Opt for home filtration systems over costly bottled water. Brault emphasizes that the savings over time can be substantial, highlighting the absurd cost of bottled water branding.
15. Excess Snacks
Brault advises against stocking up on snacks for imaginary occasions. Instead, focus on purchasing only what you genuinely enjoy, allowing for more mindful grocery spending.
16. Food Delivery Apps
While convenient, ordering through food delivery apps can inflate meal costs by 80%. Consider preparing meals at home to save a significant sum in 2026.
17. Luxury Vacations
Instead of splurging on distant getaways, consider a staycation. With the rising cost of travel, reevaluate your vacation plans to make more economical choices this year.
18. Expensive Concerts
Concert ticket prices are climbing. According to Yahoo Finance, the typical concert ticket price has surged significantly in recent years, making it essential to budget wisely for entertainment.
19. New Cars
The average price of a new car has escalated dramatically. Given these rising costs, Brault recommends considering used vehicles as a more financially sound option for your next purchase.
20. The ‘McMansion Trap’
Many new homebuyers fall into the “McMansion trap,” spending beyond their means. Yahoo Finance notes a significant percentage of buyers express regret over their home purchasing decisions, highlighting the importance of careful budgeting.
21. Gourmet Coffee
The expense of gourmet coffee can add up quickly. Consider treating yourself to it once in a while rather than daily. This adjustment can lead to significant savings over the year.
22. Phone Upgrades
Unless your phone is no longer functional, resist the urge to upgrade annually. Savings can add up by sticking with your current model unless absolutely necessary to replace it.
23. Paper Towels and Napkins
Switching to reusable towels and cloth napkins can greatly reduce your expenses over time. While paper products seem inexpensive, encapsulated costs can surprisingly mount up.
24. Workout Gear You Won’t Use
Be cautious about purchasing excessive workout gear that ends up unused. Start your fitness journey with what you have and identify what you genuinely need before buying more.
25. Fitness Memberships You Won’t Use
Consider whether a gym membership is justifiable based on your usage. You might find that at-home workouts utilizing online resources can be equally effective without the financial commitment.
For more insights into smart spending habits, refer to GOBankingRates. This article was originally published on GOBankingRates.com and highlights essential tips for budgeting in the new year.
