What Is Ghost Spending? The Subtle ‘Thief’ in Your Wallet
Simply put, what is ghost spending can be defined as small expenses that we often don’t realize, but when added up, the total can be massive. It’s called a ‘ghost’ or phantom because these expenses often go unseen in our financial records (if we even keep them) and we tend to brush them off because the amounts are so small.
Imagine you’re walking in a light drizzle. You might think you won’t get soaked because the drops are tiny. But if you stand there for an hour, your clothes will definitely be wet. That’s how ghost spending works. These expenses are usually routine or impulsive on a small scale, so our brains tend to ignore them.
Why do small expenses become a big problem?
The main issue with what is ghost spending isn’t the amount of a single transaction, but its frequency. In today’s digital era, transactions have become much easier thanks to QRIS, e-wallets, and one-click payment features. This convenience often makes us lose our sense of spending. We feel like we’re only spending ten or twenty thousand rupiah, but we do it multiple times a day.
Psychologically, humans have a tendency to use mental accounting. We often separate large expenses (like paying for a boarding house or installments) from small expenses (like a coffee run or admin fees). Because these small expenses don’t feel ‘painful’ in our wallets at the moment, we tend to let them keep flowing without a filter. Yet, if we truly understand what is ghost spending, we’ll realize that this accumulation is often what stops us from reaching our financial goals, like a vacation or buying a new gadget.
Difference between ghost spending and impulse buying
You might be wondering, what is the difference between what is ghost spending and impulse buying? Impulse buying usually involves items we want but don’t need, and the amounts are often quite noticeable—like buying discounted shoes or checking out a shopping cart during double-date sales (like 11.11 or 12.12). You’re aware you’re doing it, and there’s usually a sense of guilt afterward.
On the contrary, what is ghost spending is much more cunning. You might not even realize you’ve spent the money. For example, you’re subscribed to a streaming service you haven’t watched in three months, but the bill keeps getting automatically deducted from your credit card or e-wallet balance. Or, extra service fees when ordering food online that you consider ‘mandatory costs’ when they could actually be avoided. This is why identifying what is ghost spending is much harder than simply restraining yourself from impulse buying.
Fact: Gen Z consumers who make at least one impulse purchase per week — 54 percent (2024) — Source: Sec Newgate
Real-Life Examples of Ghost Spending Often Unnoticed
To better understand what is ghost spending, let’s look at some real-life examples that are very close to the daily lives of young Indonesians today. Do any of the following relate to you?
App subscription fees rarely opened
This is one of the most common forms of ghost spending in the digital age. We’re often tempted by ’30-day free trial’ promos for photo editing apps, workout apps, or music and movie streaming services. The problem is, we often forget to cancel the subscription before the trial period ends. Eventually, every month our balance is automatically deducted for services we rarely even use.
Fact: Projected global market size of the subscription economy — 1.5 trillion USD (2025) — Source: Market.us
The data above shows how massive the money circulation is in digital apps. If you aren’t diligent about checking your transaction history, these subscription fees will continue to haunt your finances. Understanding what is ghost spending means you have to start being brave enough to hit that cancel subscription button for things that don’t truly add value to your life.
Transfer fees and e-wallet top-ups
Try checking your bank transaction history. How many times do you transfer to other banks or top up your e-wallet balance in a month? Fees of Rp2,500 or Rp6,500 might look small. But if you make 20 such transactions in a month, you’ve already lost Rp50,000 to Rp130,000 just on admin fees. This is a classic example of what is ghost spending that often escapes our attention because we consider it a ‘reasonable’ cost.
Drink size upgrades that look cheap
“It’s just five thousand more for a Large, Kak!” We hear this line often when ordering coffee or trendy drinks. Logically, we feel like we’re saving money (value for money). In reality, the regular size is often enough to satisfy our thirst. That five thousand rupiah addition, done almost every day, is a concrete form of what is ghost spending. By the end of the month, these small additions can equal the price of several liters of gasoline or a few lunches.
Delivery fees and service charges for food delivery
Ordering food through an app is super practical, especially when you’re busy or it’s raining. However, have you ever calculated the total cost outside of the food price? There are service fees, packaging fees, and delivery fees. Even with discounts, these extra costs are often quite significant.
If one food order has an extra cost of Rp10,000 (after discounts), with a frequency of 12 times a month, you’ve already spent Rp120,000 just for ‘convenience.’ This is why it’s so important to know what is ghost spending so you can be wiser about choosing when to cook for yourself or pick up food from the restaurant directly.
Scenario: How Rp15,000 a Day Destroys Your Savings
To further understand what is ghost spending, let’s create a simple simulation. Let’s say you’re an office worker or a student who has the following small habits every day:
- Coffee size upgrade (Daily): Rp5,000
- Top-up/transfer admin fee (Avg 1x/day): Rp2,500
- Food app service fee (Avg 1x/day): Rp4,000
- Extra parking or driver tips (Avg 1x/day): Rp3,500
These small expenses total Rp15,000 per day. Seems trivial, right? Maybe it’s just the price of one bag of snacks. But let’s look at the accumulation:
| Time Period | Total Ghost Spending |
|---|---|
| 1 Day | Rp15,000 |
| 1 Week | Rp105,000 |
| 1 Month (30 Days) | Rp450,000 |
| 1 Year | Rp5,400,000 |
| 5 Years | Rp27,000,000 |
Imagine, in one year you lose Rp5.4 million without realizing where that money went. That amount of money could be used for effective saving methods to buy plane tickets for an overseas vacation, get a new phone, or invest in mutual funds that can grow in the future.
When you realize what is ghost spending, you’ll see that every Rp15,000 you save is a real step toward financial freedom. Imagine if that Rp27 million in 5 years was put into an investment instrument with a 6% annual return—the total would be even larger! This is why what is ghost spending is often called the most effective wealth inhibitor because of its ‘unnoticeable’ nature.
5 Practical Steps to Overcome Ghost Spending
After knowing what is ghost spending and its terrifying impact on your wallet, the question is: how do you stop it? Don’t worry, you don’t have to become a cheapskate who never buys treats. The key is awareness and control. Here are 5 effective steps you can practice immediately.
1. Audit Digital Subscriptions Regularly
The first step to fight what is ghost spending is by doing an audit. Spend 30 minutes on the weekend to check all your e-wallet accounts, bank statements, and credit card bills. Look for recurring monthly transactions.
Ask yourself: “When was the last time I used this app?” or “Do I really need this premium service?” If the answer is no or you’re hesitant, cancel it immediately. Remember, stopping unused subscriptions is the easiest way to instantly stop money leaks. This is an important part of a healthy managing routine expenses strategy.
2. Record Every Expense, No Matter How Small, in Real-Time
Many people fail because they only record large expenses. To truly understand what is ghost spending, you must record everything—even a two thousand rupiah parking fee or a bank admin fee. The key is to record in real-time. If you wait until night, you’ll usually have forgotten.
You can use a financial tracking app like MoneyKu, which is designed for quick recording. By recording immediately as the transaction happens, you’re signaling to your brain that your money just went out. This awareness will automatically make you more careful before making your next small purchase. This is fundamental to an accurate monthly budgeting method.
3. Use Expense Categories to See Patterns
Don’t just record the amount; categorize it too. For example, create specific categories for “Admin Fees,” “Convenience Fees,” or “Upgrade Treats.” At the end of the month, look at the visual summary. You might be shocked to see that the “Admin Fees” category actually totals as much as two nice meals. This data visualization is very helpful in understanding the most dominant what is ghost spending in your lifestyle. Once you know the pattern, you can look for alternatives, like moving to a bank with free transfers or using just one payment app so you don’t need to top up multiple times.
4. Evaluate ‘Convenience’ Costs (Admin & Delivery)
Convenience is expensive, and often that’s the main source of what is ghost spending. Before clicking ‘order’ on a food app, look at the total cost one more time. Does the extra fee make sense compared to the food price?
Occasionally, try walking to the front of the complex to buy food or cook a simple meal at home. Besides being more economical, you also get more active. For transfers, take advantage of third-party apps or digital bank features that offer free transfer fees. Cutting these small costs won’t lower your quality of life, but it will significantly help the health of your bank balance.
5. Set Daily Limits for Entertainment Categories
One of the most effective ways to overcome what is ghost spending is by setting limits. For example, you set a limit for coffee runs or trendy drinks at a maximum of Rp50,000 per week or Rp10,000 per day. If you’ve used that limit today, it means you can only buy a treat again tomorrow.
With a limit, you become more selective. You’ll no longer carelessly say yes to “size upgrade” offers because you know it will use up your daily limit. This boundary isn’t about torturing yourself, but about training your financial discipline muscles. Remember, discipline is the main key in implementing what is ghost spending prevention.
Common Mistakes When Trying to Stop Overspending
In the journey to overcome what is ghost spending, many people eventually give up halfway. Why? Because they make several common mistakes that actually make this process feel heavy. Here are some things you should avoid:
Too stingy that it hurts (Frugal Fatigue)
Some people, after realizing what is ghost spending, immediately cut all expenses to the root. No treats at all, no leaving the house, and being extremely calculative. This can trigger frugal fatigue or exhaustion from being too thrifty.
Eventually, they’ll feel stressed and end up ‘revenge spending’ on big purchases. Overcoming what is ghost spending doesn’t mean eliminating life’s pleasures, but rather managing them so they don’t leak out without control. Give yourself room to enjoy the fruits of your hard work, but make sure everything is properly budgeted.
Forgetting to record cash expenses
In this all-digital age, we often forget that cash still exists. Often the most dangerous small expenses happen when we pay with cash—parking money, tips, buying bottled water at a stall, or small change given to street performers. Since there are no notifications on your phone, these expenses are often forgotten. However, cash is also part of what is ghost spending. Make sure every time your physical wallet opens, you record it in your financial app too.
Only focusing on big expenses
Another fatal mistake is underestimating expenses under Rp10,000. “Oh, it’s just two thousand, no need to record it.” This kind of thinking is what keeps us trapped in the same financial problems. You must remember the Rp15,000 per day simulation. Every rupiah counts. Focus on the discipline of recording without looking at the size of the amount. Only then can you truly win against what is ghost spending.
FAQ: Questions About Financial ‘Subtle Leaks’
Still have something on your mind about what is ghost spending? Don’t worry, we’ve summarized some of the most frequently asked questions by your fellow warriors in managing finances.
Should all subscriptions be deleted?
Of course not! Subscriptions that you truly use and provide benefits (like an app subscription to learn new skills or entertainment you watch regularly) are not ghost spending. The problem is subscriptions that you pay for but don’t use. So, be selective, not total in deletion.
What if I’m too lazy to record every day?
Laziness is the biggest challenge in understanding what is ghost spending. Pro tip: find an app that is very easy and fun to use. Use a widget on your phone so you can have quick access without needing to open the app repeatedly. Or, set an alarm at lunchtime and when leaving the office to do a quick check of your expenses. Over time, this will become an automatic habit!
What is the maximum ‘safe’ percentage for ghost spending?
There’s no exact number, but ideally, unplanned or ‘subtle leak’ spending shouldn’t be more than 5% of your total monthly expenses. If it reaches 10-20%, it’s a sign that you must immediately perform a major audit of your lifestyle.
Are bank admin fees considered ghost spending?
Yes, if the fees arise from unnecessary transaction frequency or inefficient service use. For example, transferring to other banks multiple times without using a free transfer app. However, mandatory monthly bank admin fees (if you indeed need that bank) usually fall under routine expenses, not ghost spending. Still, looking for a bank with the lowest admin fees is always a smart move!
After reading this article, hopefully, you’ll better understand what is ghost spending and start being wary of the ‘ghosts’ in your wallet. Managing finances indeed takes a process, but with small, consistent steps, you can surely reach your financial goals. Come on, start recording your expenses right now and see the change by the end of the month!
