The 11 Stupidest Things Americans Overspend On (Hint: Coffee Isn’t One of Them)

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 11 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/year on car insurance.

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

1. Pull up Coverage.com – it’s a free site that will compare prices for you.

2. Answer the questions on the page.

3. It’ll spit out a bunch of insurance quotes for you.

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

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, 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 for you to save money.

- Compare prices from other sellers to make sure you’re not missing out on a better deal.

3. Paying Off Credit Card Debt on Your Own

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:

1. Head to National Debt Relief’s site.

2. Answer the questions on the page.

3. 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.

4. Not Using an Ad Blocker

If you aren’t using an ad blocker yet, I am begging you to try one. It will change your life.

A good ad blocker will eliminate virtually all 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 – 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.

5. Not Getting a Financial Advisor

99% of people don’t have one, and it’s typically a huge mistake.

Sure, you can manage things on your own, but most people don’t have the time to actually do things right. 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 importantly, a good advisor will handle all the annoying retirement stuff & bizarre tax implications you would have never thought of. If you don’t know a financial advisor personally, use a comparison site like WiserAdvisor and find somebody near you that has good reviews.

6. Your Debt Payments

The average American has ~$6,500 in credit card debt. And almost nothing is more expensive than debt (particularly credit card debt).

If you want to start saving, think about using a personal loan to swap your high-interest debt for lower-interest debt. The basic idea: find a lower-interest personal loan and pay off your credit card with that loan money. Personal loan interest rates are typically far lower than credit card interest rates.

7. Not Getting Paid to Test Games ($20/day)

This may come as a surprise, but there are apps that will pay you to try new mobile games.

Freecash is one of our favorite apps to use to test new games, and getting started is easy. Download the app, select a game from the ‘Earn Page’, complete the designated offer (typically takes 5-10 minutes), and then cash out via Apple Pay, gift cards, etc. when you’re ready.

8. Home Repair Bills

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.).

9. Not Getting Paid for Your Opinions

There’s this site, Kashkick, that will actually pay you to answer surveys or download and try out apps/games. Some users have been known to make up to $250. All you have to do is sign-up, fill in your profile, pick surveys, games, or other offers to complete, then once you’ve earned $10 you can withdraw your rewards (to PayPal, etc.).

10. Not Investing in Real Estate (Start with as Little as $20)

It’s no secret that millionaires and billionaires love investing in real estate, but for the rest of us, buying property has been prohibitively expensive. Times have changed. There are a few amazing real estate startups that allow you to buy shares of rental homes for as little as $20/share. They take care of the property management and collect rent checks for you.

11. 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.

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. 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.

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!