Some things are expensive, and you know it makes sense. However, there are plenty of everyday things that most people unwittingly pay too much for. Below are seven that you need to watch out for.
1. Managed mutual funds
The fees are a killer. Investors usually pay up to 2.5% but do not get anything close to that much value in return. Index Funds that invest in all the stocks in a given index with their low fees are a smarter option.
2. Car rental insurance
What is not a rip off when you rent a car? One of the biggest ones is probably extra insurance. You are often pressured to buy double insurance as you book. Worse, your credit card may automatically cover the rental car insurance when you pay.
3. Life insurance
Check your life insurance. Chances are, you are paying more than is necessary because of unnecessary riders added by your agent. For example, your agent may add a waiver or premium rider, which pays your policy’s premium should you become disabled. Is this a good thing? Well, it can add 40% more to your monthly premium! Also, you may be double insuring yourself as disability benefits already come with insurance premiums.
4. Contact lenses
The price of contact lenses varies incredibly depending on where you buy it. Here is a tip: do not buy it from your eye doctor. You can get cheaper contact lenses from online retailers and even score discounts.
5. Gourmet coffee
Stop buying expensive coffee from fancy-schmancy coffee shops. Just invest in a good espresso machine or a good old-fashioned drip pot and brew your own at home. The results are the same and you will save a lot of money.
6. Bottled water
The fastest, easiest, and cheapest solution is to invest in a filter for your faucet or your refrigerator. Buying bottled water is just a waste of money and all the plastic burdens the environment.
Wellness or grocery stores add a high markup on vitamins. Instead, get them from online stores and get better prices. You can even earn discounts by looking for promo codes. You will be healthier, and so will your wallet!