A common problem many people notice is that their household expenses over time gradually begin to creep up. Not only is the cost of living going up, but we slowly begin tacking on unnecessary expenses. But that doesn’t mean that you can’t save money.
1. Drive Less
The average household spends nearly $9,000 per year on car expenses, including car payment, insurance, gas, maintenance and repairs, and misc. taxes and fees. According to Nerd Wallet, the average new car payment is $504 per month, insurance adds another $98 and gas runs around $128/month. If you have two cars, then you may be spending more on cars than on housing. Nerd Wallet recommends, “If you find you’re over budget on your car or if you want to reduce spending, look at your big-ticket items first: your car payment and your insurance premiums. Together, these amount to about two-thirds of your total monthly out-of-pocket car-related expenses. To find the biggest savings, consider refinancing your car loan or shopping for lower car insurance rates.” If possible, you should take advantage of public transportation and ride sharing services whenever possible, drive efficiently to minimize gas use, and combine trips to minimize miles driven.
2. Dine out Less
Dining out can be expensive, even a “fast-food” meal can cost $5-$10 and restaurant meals can easily cost $15-$20. So, if you dine out every day of the week, then you can easily spend $100- $200 per week on food. $150 per week adds $600 per month or $7,800 per year to your expenses. Since meals at home can easily save you 90% of the cost, you should limit dining out as much as possible. You can prepare more meals at home using a few prepackaged ingredients as possible. You can also pack your lunch for work.
3. Eliminate Old Memberships
If you have a gym or club membership, then you should consider getting rid of it. This can help you save hundreds (if not thousands) of dollars per year. There is no need for you to waste money on something that you are no longer using. Also look at magazine subscriptions, online subscriptions, and all other “recurring” charges.
4. Update Your Furnace
An inefficient furnace can cause you to spend hundreds more on your energy bill per year. If you have had your furnace for over 10 years, then it may be time for you to consider updating it. Heating system repair is an expensive investment. However, it can help you save a lot of money. New furnaces also last longer than the older ones and are much more efficient. See also: How Turning Your House Into a Smart Home Can Save You Money
5. Get Rid of Cable
You do not need to have cable in order to enjoy your favorite shows. Hulu, Amazon Prime, Netflix and YouTube Red are some of the alternatives that you have to cable. You can get one of these memberships for less than $13 per month. You can also borrow DVDs from the library for free.
Furthermore, you can look for other inexpensive ways to entertain your family members and friends. You can take advantage of the free events in your community. You can also visit free attractions in your area. It can be difficult to deal with the rising cost of living. The good news is that you can trim your expenses and keep money in your pocket.
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I use to be pretty financially comfortable to the point that if I wanted something within reason I could easily get it. However in the last year, my life fell apart and now I work two jobs and am struggling again. I do have 1000 dollars and growing emergency fund BUT I am having the hardest time transitioning from my old mindset of it’s only x-amount dollars, what could it hurt to being frugal and saving like I did 10 years ago when I was poor.
I don’t know how to convince my self control and motivation that we are poor now! Stop justifying every little purchase, it adds up!
James,
Good question! I know it’s hard but you just need to “bite the bullet” and carefully analyze each purchase to decide whether it is a “need” or just a “want”. Also best to get into the habit of postponing all purchases for at least a day to be sure it isn’t just an impulse buy.
Yes, I totally agree with you. I think that dining out less will definitely help in reducing the expenses. These tips are all very helpful. Thanks for sharing this article.
I totally agree with what you said. I think that it is better to eliminate old memberships when it is not needed anymore. I think that it will help for us to get a better finance management.