If you’ve been crunching those numbers lately trying to figure out how you’ve been spending your money you might have come to the realization you need to cut some expenses.
With a quick review and a few simple hacks you can cut back on unnecessary spending and free up some cash.
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Welcome to Money Tip Tuesday from the Making Money Personal podcast.
Saving even a little bit of money these days can make a world of a difference for your finances.
Here are a few places you can look to start if you’re ready to cut back on your spending.
Number 1: Consider cutting out that regular cup of coffee.
If you’re used to buying your daily cup of joe, you may be spending more than you realize.
As of 2023, the average cup of coffee in the US costs $3.28. If you’re a regular drinker, that means you spend roughly $10 – $16 a week depending on how often you purchase your coffee. And that doesn’t even include tip.
If you’re buying your morning brew 3 times a week that means you’ll be spending roughly $520 a year on coffee. If you buy one every day of the week, then you’re spending around $832 a year on your coffee.
If you don’t like the thought of spending half a grand to almost a grand on coffee a year, then there’s an easy fix for you. Simply cut back buy buying less frequently or make your own coffee at home.
A cup of homemade coffee can cost between 18 - 27 cents. That’s a big difference from buying one from your favorite coffee shop.
Number 2: Dial back on dining out. This one is pretty obvious. Many of us spend more than we realize on dining out.
According to the Bureau of Labor Statistics, the average American dines out 5.9 times per week and the average household spends roughly $3,500 a year on it. That’s around $291 a month.
Are you comfortable affording that?
If that seems like too much for you to afford, then it’s time to take a closer look at how much you’re spending on food you don’t cook at home.
If you’re not ready to cut it out entirely, because it provides some relief from a hard day’s work, try cutting back on the number of times you go out, choosing cheaper establishments, or cutting out expensive options when you do go out like alcoholic drinks, apps or desserts.
Number 3: Cut back on streaming services, or other subscriptions.
If you’re like me, you’re probably paying for more than one streaming service every month. According to a 2023 Forbes survey, the average person is subscribed to 2.8 streaming services with some subscribing to five services at a given time.
The survey also showed that the average person spends $39 a month on streaming services which can add up to $486 a year and it also showed that 47% of people are paying for streaming services that go unused.
If you find you’re paying too much simply cancel some and stick with the one you like the most or cancel all and opt for free TV instead. You’ll likely have to endure commercials, but that can be a small price to pay for the money you’ll save over time.
Number 4: Lose your unused gym or fitness memberships.
Gym memberships can be costly.
According to a 2021 survey done by RunRepeat, the average cost of a gym membership is around $37.71 a month. That comes to about $452 a year.
The saddest part of this is that most people don’t end up using the membership as often as they planned, with many not using it at all. Even if you’re only paying $10 a month fee, it’s still a waste.
Pay attention to how much you’re dishing out for your fitness and if you find you’re one of those people paying for something you’re not using, cancel your membership and opt for other, cheaper ways of training instead.
Walking or running outside, getting involved in recreational activities, even free YouTube videos are great ways of keeping up with your fitness goals without paying for an unused membership.
Number 5: Learn how to DIY things. In many cases, it’s cheaper to do a job yourself than to pay someone else to do it for you.
Things like learning how to change your own oil, repair drywall, change out light fixtures or unclog a sink can save you a lot of money when you take a little time and effort to do it yourself.
Allbetter app, an app for handyman and other services, lists some of those basic jobs starting at $100. If you’re up for the task and want to save a little bit of money, look up how to do the job or repair on YouTube or other websites to take it on yourself. You could even ask a friend or family member to guide you if they have experience in home repair.
If you’re currently paying for cleaning services you can cut back by budgeting some of your time to handle those chores yourself.
Taking over some of those basic home projects on your own instead of paying someone else to do it for you can save you hundreds of dollars a year.
Number 6: Shop for secondhand items.
For certain things secondhand and gently used items can be just as good as new but with a lower price tag.
Some of the best items to buy used are gym equipment, hand tools, and furniture.
For items like these buying used can save you around 25% off the retail price. Try searching places like Facebook Marketplace or Craigslist if you’re hunting for a bargain on used items.
Another favorite for many people is to buy used clothing at retail thrift shops or online apps like Poshmark and others.
If you’re a savvy recommerce shopper you can save around $150 a month which adds up over time to around $1,760 a year on average.
Be careful when buying from secondhand sellers to make sure you’re not getting scammed and if you’re looking at something electric or mechanical, remember to test it before buying.
To wrap up, finding ways to cut costs may not be too difficult when you know where to look. Stay aware of your expenses, budget and adjust your lifestyle accordingly because cutting back on the small stuff can save you more than you realize in the long run.
To quote Ben Franklin: "Small expenses add up over time and can slowly sink our money into the abyss. The worst part, we typically won’t know until it’s too late."
If there are any other tips or topics, you’d like us to cover, let us know at tcupodcast@trianglecu.org. Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.
Have a great day!
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