7 things you're wasting money on and how to avoid it

Gasoline, food and medicine.

This is how the price increase affects Hispanics in the US 3:16

(CNN) --

Now that inflation is driving up the prices of almost everything, it's more important than ever to monitor how money is spent.

However, over time, even the most budget-conscious consumers can end up spending more than necessary on certain items.

Here are seven common money traps, and tips for cutting those expenses.

Bank fees

Whether you pay fees to withdraw money from an out-of-network ATM, or pay monthly service fees just for having a checking account, small fees can add up to a significant amount of wasted money over time.

According to a Bankrate survey, the average monthly fee for interest-free checking accounts (excluding free checking accounts) was just over $5 last year, while the fee for interest-bearing checking accounts was more than $5. $16 for those who did not meet the requirements to not pay the commission.

How to avoid waste?

Change banks.

Nearly half of checking accounts have no monthly maintenance fees, according to Bankrate.

The cost of the monthly fees, if you can't avoid them with your current bank, probably outweighs any interest you're receiving on that account.

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Sale Items You Don't Need

There's no denying the thrill of buying an item for less than its usual price.

But spending money on something you don't need just because it's on sale can quickly lead to overspending.

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How to avoid waste?

The next time you're tempted to buy something on sale, wait 24 hours before making the purchase.

Often the initial thrill of getting a deal will wear off, and you can walk away without making a purchase.

Subscriptions you don't use

A Chase study from last year found that more than 70% of consumers wasted more than $50 a month on recurring payments for things they didn't need or want.

One culprit for this, said Julie Ramhold, a consumer analyst at DealNews, is that people often sign up for free trials and then forget to cancel when the trial expires.

"These things are put on autopay, and then people don't even realize they're paying for something they don't even use," adds Ramhold.

"It's an easy way to throw money out the window."

How to avoid waste?

Even if you have your credit cards set up for automatic payment (which is a smart way to avoid late fees), carefully review your statement each month and cancel any charges for items or services you don't use.

food waste

According to the Natural Resources Defense Council (NRDC), up to 40% of food in the United States is not eaten.

While the amount of food your family throws away may be less, we're all guilty of having to throw out wilted salad greens or leftovers brought home from a dinner out.

How to avoid waste?

Check your fridge before going to the supermarket.

Next, plan your meals (and shopping list) around the items you already have.

This will not only ensure you use those items before they go bad, but you'll also be less likely to buy new food that goes to waste.

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Extended Warranties

While extended warranties on cars, appliances or other electronics can offset the cost of future repairs, they're not always a good deal for consumers, according to Ramhold.

Sometimes the cost of the plan exceeds the cost of possible repairs, or doesn't cover the problem at hand, says Ramhold.

Also, many credit cards include extended warranty coverage for some purchases, so you may be paying for coverage you already have up front.

How to avoid waste?

Instead of paying for an extended warranty, consider putting your extra money into an emergency account that you can use to cover the cost of repairs, should they be needed.

If you already have an emergency account with the necessary funds, you may be able to skip this expense entirely.

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Paying more for insurance

Like most services, the cost of auto and home insurance tends to increase over time, but if you've been with the same provider for several years, you may want to shop around to see if you can find a better one.

"New customers get new customer deals," says consumer savings expert Andrea Woroch.

"You may be able to find a policy that offers the same or better coverage for less."

How to avoid waste?

Check websites like Zebra.com or Policy Genius for insurance quotes.

If you're happy with your current coverage and provider, you can use those quotes as ammunition in negotiations for a better rate.

Other ways to lower your bill: bundle auto and home insurance with the same provider or increase your deductible.

By doing these two things, Woroch said he was recently able to reduce his insurance bill by $1,100 a year.

• US credit card interest is near all-time highs

Credit card interest

High-interest debt and credit card fees cost American households an average of $1,000 a year, according to the Consumer Financial Protection Bureau.

Although credit cards can be a useful tool, they become an expensive burden that can undermine your finances when you have a past due balance.

How to avoid waste?

If you have debt, focus on paying off the existing balance and freeze your cards for now.

"If you're struggling with credit card debt, it's probably a good time to put the card away and use cash instead, or use a debit card," advises Ramhold.

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