ATM fees are getting really ridiculous these days. Some machines are charging up to $3.75 for the service of giving you your own money. Do this once a week, and you’ve spent around $200 in fees with nothing to show for it.
I’m really not sure how these machines get away with it, but they must, since people continue to use them and the fees get higher and higher. Still, you can avoid ATM fees with a couple of frugal strategies.
Find No-Fee Machines
Sounds simple, but it isn’t always easy. With a little research, you can find conveniently placed no-fee ATM machines. They are out there. Sometimes you have to go all of the way to a bank, but there may be a few more under your nose.
Here in Pennsylvania, we have a chain of convenience stores called Wawa (after Wawa, Pa). The machines in these stores have never charged a fee, so we can use them frequently.
Institute the Envelope System
With a little planning, you can avoid having to use ATM machines at all. Once a week or once a month, depending on how disciplined and organized you are, take out enough cash for the things that you usually buy and place them in separate envelopes. For example, if you indulge in a gourmet coffee once a day, calculate how much it costs for the week or the month and put the cash in its own labeled envelope. Use that cash for your purchases.
This system will also give you a clear idea of how much you typically spend on different things, which can be helpful in budgeting.
Use Cash Back
You won’t be charged a fee when you purchase something and use cash back. Buying a small item at a drugstore can be enough to request the cash that you need (which is why stores offer this service). Just make sure that it is something that you would have bought anyway, otherwise you aren’t really saving money.
A better idea is to simply take out extra cash back when you do your weekly grocery shopping. This will also work if you want to do the envelope system but don’t want to visit the bank each week.