By Elisabeth Dawson, Financial Advisor in San Diego
As a financial advisor and the founder of COPIA Wealth Management & Insurance Services and COPIA Wealth Management Advisors Inc., I’ve worked with many individuals and families who feel like they’re doing everything right—earning a good income, saving consistently, and staying out of major debt—but they’re still not seeing the financial progress they expected. If that sounds like you, you’re not alone.
One of the most common culprits behind this frustration? Phantom expenses.
These are the hidden costs quietly draining your wealth—expenses that often go unnoticed, unchallenged, and unmanaged. Today, I want to shed light on these sneaky money leaks and help you take back control of your financial future.
What Are Phantom Expenses?
Phantom expenses are costs that fly under the radar. They’re not your rent or mortgage, groceries, or utility bills—those are obvious. Instead, these are the expenses that we often overlook, ignore, or accept as normal. Think unnecessary insurance coverage, hidden investment fees, outdated subscriptions, or even inefficient tax strategies.
Individually, these expenses may not seem like a big deal. But over time, they add up—costing you thousands, if not tens of thousands, of dollars each year.
Let’s take a closer look at some of the most common phantom expenses and what you can do to eliminate them.
Unnecessary or Overlapping Insurance CoveragePaying for What You Don’t Need
One of the first areas I review with my clients is their insurance. Many people are overinsured, underinsured, or paying for coverage they simply don’t need anymore. For example, you might still be carrying a high-value life insurance policy even though your children are grown and financially independent.
Or you may be paying premiums on multiple policies that offer overlapping coverage—such as a roadside assistance plan on your auto insurance and another one through a credit card. That’s money going out the door every month for no added value.
How I Help
At COPIA, we take a deep dive into your insurance landscape. I’ll help you evaluate whether each policy still serves a purpose in your financial plan and identify opportunities to streamline, reduce costs, or find better coverage for less.
Hidden Investment Fees and CostsWhat You Don’t See Can Hurt You
It’s not always easy to understand how much you’re paying for investment management. Between fund expense ratios, advisor fees, account maintenance costs, and trading fees, the total can easily exceed 1–2% of your invested assets every year.
While that might not sound like much, consider this: if you have $500,000 invested, a 2% annual fee equals $10,000. That’s $10,000 less growing for your future. Over a 20-year period, the lost opportunity cost can be staggering.
Transparency is Key
One of my core beliefs is that you deserve full transparency. When we work together, I break down every fee associated with your portfolio, explain what you’re paying and why, and make sure you’re not spending more than necessary for the return you’re getting.
Often, we can shift clients to lower-cost strategies or fee-efficient structures that align better with their goals and help them keep more of what they earn.
Subscription and Service CreepThe $9.99 Drain
In today’s world, subscriptions are everywhere—streaming services, software, meal kits, apps, memberships, and more. It’s easy to forget what you’ve signed up for or lose track of recurring charges. Before you know it, you’re spending hundreds each month on services you barely use.
These small, recurring expenses are classic phantom costs. Because they’re automatic and relatively low, we tend to ignore them. But added together, they can create a significant drag on your monthly cash flow.
Time for a Subscription Audit
Every year, I encourage my clients to do a “subscription audit.” We’ll sit down and review your credit card and bank statements line by line. I’ll help you identify which services are truly essential and which can be paused, canceled, or replaced with a free alternative.
You’d be surprised how freeing it feels to reclaim that money and redirect it toward your goals.
Inefficient Tax StrategiesAre You Paying More Than You Should?
Taxes are one of the biggest expenses you’ll face in your lifetime. Yet most people don’t have a proactive tax strategy—they simply file their return each year and hope for a decent refund.
Without strategic planning, you could be leaving thousands on the table.
Integrated Tax Planning at COPIA
At COPIA, tax strategy is a cornerstone of financial planning. We don’t just look at your tax return—we integrate your investment, retirement, and income planning to find tax efficiencies in every area of your financial life.
This might include:
- Optimizing when and how you withdraw from retirement accounts
- Leveraging tax-advantaged investment vehicles
- Planning charitable giving in tax-smart ways
- Timing capital gains and losses to reduce your tax bill
Even small changes can result in significant long-term savings.
Lifestyle Inflation and Mindless SpendingWhen More Income Doesn’t Mean More Wealth
As your income increases, it’s natural to want to upgrade your lifestyle. Maybe it’s a nicer car, frequent dining out, or more luxurious vacations. While there’s nothing wrong with enjoying the fruits of your labor, unchecked lifestyle inflation can quietly erode your ability to build wealth.
The danger lies in spending more simply because you can—not because it’s aligned with your goals or values.
Aligning Spending With Your Vision
I believe that money is a tool to help you live the life you envision. That’s why I work with clients to create intentional spending plans—ones that reflect what truly matters to them.
We focus on values-based budgeting, which helps ensure that your money is supporting your goals, not just your habits.
Opportunity Costs You May Be OverlookingMissing Out on Growth and Compound Interest
Sometimes, the biggest phantom expense isn’t money you’re actively spending—it’s money you could be earning but aren’t. This could be due to:
- Letting large amounts of cash sit idle in low-yield savings
- Delaying investment decisions out of fear or confusion
- Not taking full advantage of employer retirement matches
Opportunity costs may not show up on your bank statement, but they’re just as real. If you’re not maximizing the growth potential of your money, you’re leaving wealth on the table.
How We Help You Plug the Leaks
At COPIA Wealth Management, my team and I are passionate about helping you uncover and eliminate the phantom expenses that are holding you back. Here’s what working with us looks like:
- Comprehensive financial assessment – We analyze your current financial picture to uncover inefficiencies and leaks.
- Customized action plan – We provide tailored recommendations to optimize insurance, investments, taxes, and spending.
- Ongoing accountability – We stay with you every step of the way, monitoring progress, adjusting strategies, and keeping your goals front and center.
Take Back Control of Your Wealth
You work hard for your money. Don’t let it slip away unnoticed.
By identifying and eliminating phantom expenses, you can free up thousands of dollars each year—money that can be redirected toward the things that truly matter: your retirement, your children’s education, your dream home, or simply peace of mind.
If you’re ready to get serious about your financial future and want a partner who’s committed to helping you make the most of every dollar, I’d be honored to speak with you.
Let’s plug the leaks, align your money with your goals, and start building the wealth and legacy you deserve.
Elisabeth Dawson is a financial advisor based in San Diego, CA, and the founder of COPIA Wealth Management & Insurance Services and COPIA Wealth Management Advisors Inc. With a warm, personalized approach to financial planning, she helps individuals and families create clarity, confidence, and control over their financial lives.
CA LIC #0C71264, #0G81294
Investment advice offered through Copia Wealth Management Advisors, Inc.
Copia Wealth Management Advisors, Inc. is a registered investment advisor.
