If you’ve looked over your budget and think you can’t cut it down anymore, maybe you need to look a little harder.
There are probably some expenses you still could reduce — or drop altogether — to save thousands of dollars a year.
We found some examples of these costs. Here’s how to slash them if you are really determined. If you eliminated all of these expenses, you’d save a whopping amount — around $32,640 per year, based on averages.
But even by shaving off just 10% of these expenditures, you’d be around $3,264 richer by this time next year.
1. Rent
The national average rent was $1,460 per month as of July, according to real estate research company Yardi Matrix. That’s $17,520 per year.
If you were to move somewhere the cost of living is lower, or bring in a roommate, you could cut your housing costs significantly.
And if you moved in with accommodating family members, you might be able to go rent-free, at least for a time.
If your home has an extra room, another option to offset housing costs is to rent that room to travelers. Try listing your spare space — or the entire home — on a vacation rental website like Airbnb, Homestay or VRBO (short for “Vacation Rentals by Owner”).
But if you’re searching for a place to relax, then you can have a peek at this vacation rentals near Mt. Hood Oregon here for some great options available for you and your loved ones!
Total annual savings if you could:
Give up the expense: $17,520 (based on the national average rent)
Reduce the expense by 10%: $1,752
2. Car payment
The average monthly new-car loan payment was $568 as of June, according to Edmunds. That’s $6,816 per year.
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Ideally, you would save enough money to buy a car outright instead of financing it, to avoid paying interest on the loan. At least, try making a bigger down payment to lower your monthly car payment.
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Getting rid of a personal vehicle and taking public transportation, walking or biking instead would be a major money-saving shift.
Or, depending on how much you drive, a ride-share service like Lyft or Uber might help you save money. You’d stand to also save on a car payment, insurance, gas and on the biggest auto expense of all, depreciation.
Total annual savings if you could:
Give up the expense: $6,816 (based on the average new-car loan payment)
Reduce the expense by 10%: $682
3. Cellphone
The typical American household that has four wireless phone lines and pays $100 per month for service also paid another $260 per year in taxes, fees and surcharges as of 2019, according to the nonprofit Tax Foundation. That’s a total of $1,460 per year.
You could cut costs by adding a few friends or family members to your plan, or by changing your plan.
If you don’t use your mobile phone a lot or are home enough to justify a landline, consider ditching your mobile service, or get a prepaid plan.
Total annual savings if you could:
Give up the expense: $1,460 (based on the typical four-line, $100-a-month plan)
Reduce the expense by 10%: $146
4. Dining out
Sometimes you don’t feel like cooking, and that’s allowed. But let it be a habit, and it can cost a couple hundred bucks a month.
The average household in the U.S. spends $3,434 per year dining out, says the U.S. Department of Labor’s latest consumer spending data. Cooking at home is much cheaper.
Reducing your restaurant spending can make a noticeable difference to your budget.
Total annual savings if you could:
Give up the expense: $3,434 (based on average household spending)
Reduce the expense by 10%: $343
5. Cable
If you haven’t cut the cord yet, you might want to consider it. The average household cable package costs about $217 per month, according to DecisionData.org. That’s $2,604 per year.
Cutting the cord could cut that cost dramatically, with the many free and affordable alternatives to cable and satellite TV.
Lowering your costs is great. Free is even better.
Total annual savings if you could:
Give up the expense: $2,604 (based on the average cable package)
Reduce the expense by 10%: $260
6. Gym membership
If you’re a committed gym rat who gets your money’s worth from a monthly gym membership, more power to you.
But many of us sign gym contracts in a burst of enthusiasm and quit after a few months. The gym membership contract, however, can keep you making monthly payments, whether you use the facility or not.
While membership programs and costs vary, Healthline says memberships average $58 per month, or $696 per year.
Maybe the COVID-19 pandemic already has got you exercising on your own for free. If not, give it a try. Buying Second Hand Gym Equipment and doing a strength training program at home, for example, lets you eliminate gym fees entirely.
Total annual savings if you could:
Give up the expense: $696 (based on the average monthly gym fee)
Reduce the expense by 10%: $70
