Let’s be honest—budgeting and managing finances is an ongoing task that requires constant attention. While it’s crucial to be mindful of big purchases, it’s often the small, everyday habits that quietly drain your wallet. These money leaks can add up quickly, making it harder to save or meet your financial goals.
In this article, I’ve listed down 15 common habits that might be eating into your budget without you even realising it. No matter your financial situation, identifying and eliminating these unnecessary expenses can help you save more for the things you really need—or truly want!
Note: This isn’t about cutting out all your small pleasures; it’s about being aware of where your money goes so you can make more informed choices. After all, a little indulgence now and then is perfectly fine—everything in moderation!
1. Buying Bottled Water
Staying hydrated is essential, especially in Malaysia’s heat. But if you forget to bring your own water bottle, you’ll likely end up buying bottled water. While it might seem like a small expense, it adds up over time. At RM2.50 a bottle, you could be spending RM75 a month or RM900 a year! So, make it a habit to carry a reusable water bottle whenever you head out.
2. Missing Credit Card Repayments
Skipping out on your credit card payments will cost you a lot of fines and penalties. Credit cards are known to have the highest interest rates, up to 18% p.a. That means the larger the amount left unpaid, the higher the interest charges. If left unchecked, you could find yourself in credit card debt very quickly. If you have trouble keeping track of your deadlines, then set a reminder earlier than your payment deadline to avoid paying the late interest fees.
3. Unused Gym Memberships
Many of us sign up for gym memberships with the best intentions, only to stop going after a few weeks. If you’re not using your membership regularly, cancel it and explore free exercise options like jogging or home workouts on Youtube instead.
4. Fast Fashion Shopping
Buying cheap, trendy clothing might feel like a good deal, but it adds up over time, especially when the items quickly go out of style or fall apart. Invest in a few quality pieces that last longer and save money in the long run instead.
5. Withdrawing Cash from Out-of-Network ATMs
Withdrawing money from out-of-network ATMs might cost you RM1 here or RM2 there, but it adds up fast. Stick to your bank’s ATMs to avoid these unnecessary fees or better yet, switch to using a digital e-Wallet like TNG or MAE app instead.
6. Unhealthy Lifestyle Habits
Smoking and excessive drinking not only harm your health but also your wallet. Malaysians spend approximately RM15.85 billion each year on smoking and tobacco substances.
Additionally, Malaysians also end up spending an estimated RM16 billion annually on treating smoking-related illnesses, such as cardiovascular diseases and lung cancer. Not only are these habits damaging to your finances, but also your health!
7. Buying Lottery Tickets (Toto)
While the allure of hitting the jackpot at Toto seems tempting, the odds of winning are extremely low. The chances of winning the Supreme Toto 6/58 game jackpot are approximately 1 in 40,475,358 and regularly purchasing lottery tickets is more likely to result in financial loss rather than a substantial gain.
8. Not Comparing Prices
While it may take slightly longer than usual, comparing prices of items like clothing or groceries in different locations might help you save a few extra ringgits along the way.
I get it; not everyone has the luxury of time to window shop, but thankfully we live in modern times, you don’t even have to leave your homes to check prices these days. In fact, you can use apps that show you prices in different stores, such as Hargapedia or SmartShopper.
9. Traffic Offences
Speeding is one of the most common traffic offences in Malaysia and can result in hefty fines, depending on how much you exceed the speed limit.
For instance, speeding more than 40 km/h above the limit comes with a hefty saman (fine) of RM300 for all vehicles, with no discounts for early payments!
To avoid these costly penalties, always drive within the speed limits, park legally, and avoid using your phone while driving. Staying on the good side of the law not only keeps you and others safe on the road but also keeps your wallet from running dry.
10. Frequently Dining Out
With food prices in Malaysia rising by 2% , frequently dining out—especially for work lunches—can take a serious toll on your bank account.
Packing your own lunch is a smart way to cut your monthly food expenses in half. For instance, instead of spending RM200 a month on eating out, you could reduce that to just RM100 by bringing your lunch from home half the time. Not only will you save money, but you’ll also enjoy the added health benefits of preparing your own meals.
11. Sending ALL Your Clothes for Dry Cleaning
Not all your clothes need to be sent for dry cleaning. Dress shirts, blouses, trousers, skirts—these can usually be washed in the machine on a gentle cycle with cold water. If an item is very expensive, delicate, or you're unsure, it's safest to dry clean. But for many everyday clothes, washing at home can save you a lot of money and keep your clothes looking great for longer. Just be gentle and avoid the dryer when possible.
12. Keeping Unnecessary Subscriptions
Do you really need all those streaming services and premium subscriptions? If you’re subscribed to Netflix, Amazon Prime, or other services that you barely use, consider cancelling them. You can always resubscribe if you really miss them, but in the meantime, you’ll save a significant amount each month.
13. Skipping Your Medical or Dental Checkups
Neglecting your regular medical or dental checkups can cost you in the long run. Your health should always be a priority, and addressing symptoms early on can save you a lot of money—and pain. For example, if you notice unusual tooth sensitivity, don’t just ignore it! A prompt visit to the dentist could prevent a small issue from turning into a costly root canal, which can be nearly three times more expensive. Similarly, delaying a doctor’s visit could result in a hefty medical bill down the line.
14. Paying Yourself Last
This one is a huge deal-breaker. When you don’t pay yourself first—setting aside a portion of your income for savings before anything else—you risk spending your entire pay cheque on expenses and wants. By consistently saving a percentage of your income first, you can build an emergency fund, invest for the future, and ensure your financial security. Make paying yourself first a non-negotiable habit, and watch your savings grow.
15. Having Too Much Cash
Holding excessive amounts of cash can be detrimental to your financial health. Traditional savings accounts offer you minimal interest rates, often lower than the inflation rate. This means that your cash is effectively losing value rather than growing. Additionally, cash sitting idle in your bank account means missed opportunities for growing your wealth. Keep only what you need for daily expenses and emergencies. If you prefer to keep some cash liquid, look for high-yield savings accounts that offer better interest rates than traditional savings accounts.
(Learn how to invest RM100 every month!)
Conclusion
These small habits are often overloooked but they can slowly drain your finances if you’re not careful. Identify and elimiate these money leaks, so you can better manage your budget, save and work towards your financial goals. Being mindful of where your money goes doesn’t mean you have to cut out all the things you enjoy—it’s about making intentional choices that align with your long-term financial well-being. Start addressing one or two of these habits, and you’ll be surprised at how much you can save over time!
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