The average American spends $2,000 a year on their phone bill and $1,500 on cable TV. These are just two of the many ways we spend money that could be better spent elsewhere. Here are six ways to drastically reduce your spending and get more out of life.
The how to drastically cut expenses is a great article that talks about how you can save money. There are 6 different ways that you can do this.
Another pay period has passed. Where did the remainder of your money go after you paid all of your primary expenditures (rent, utilities, vehicle payment, insurance, etc.)? Have you ever asked yourself this question? I did, and I understood it was because of my spending habits.
Overspending is a problem that Americans face. According to a study, individuals spend $143 per week more than they budget. Over the course of a year, this equates to around $7,400 in excess spending [source].
When I looked at my spending habits, I found that I was not a spendthrift. However, since I didn’t take the time to search around for lower rates, I ended up spending much more than I should have in many places.
So, how about you? Is spending too much money a habit you can and should break? Whether you need to or not, here are six simple methods to significantly decrease your spending and retain more of your hard-earned money.
1. Cancel any subscriptions that you don’t want.
Did you know that the typical American family spends $47 per month on subscriptions to streaming services [source]? This comes to $564 each year. That doesn’t include any other subscriptions you may have, such as gym memberships, food subscription boxes, or magazine subscriptions. While each membership seems to be cheap on its own, when you add them all together, it soon becomes prohibitively costly.
Let’s get down to business. Do you really need Netflix, Hulu, Disney Plus, and HBO Max subscriptions all at once? Rotate your programs and binge-watch them. Do you go to the gym often enough to warrant your membership? If you examine your monthly subscription costs, you will most certainly discover money that is being wasted. If you don’t, there’s an app for that as well.
Trim Makes It Simple to Say Goodbye to Unwanted and Forgotten Subscriptions
Trim is an app that analyzes your spending patterns and suggests methods for you to save money, such as canceling outdated or unneeded subscriptions. Trim will detect reoccurring payments and ask if you want to retain or discontinue the subscription. It’s that simple.
Please keep in mind that Trim accepts money right away. Trim, for example, would seek their 15% charge ($18) immediately away if they save you $10 per month. After that, though, you retain 100% of your money.
To avoid spending money on memberships you don’t need, sign up for Trim right now.
2. Spending Less on Food
Do you have any idea how much money a family spends on food each year? $7,200+!. [source] This equates to $4,049 spent on meals at home and $3,154 spent on food away from home.
We pretend that dining out isn’t as expensive as it is, yet every coffee shop visit, fast food lunch, and restaurant dinner adds up. You will significantly decrease your monthly expenditure if you decide to quit purchasing prepared foods.
Prepare Your Own Meals to Save Money and Time
When we go out to eat, we pay for more than just the food: we also pay for the waiters, chefs, managers, and restaurant overhead. We can eat just as well for less money, and we can make those meals fast if we follow the $5 Meal Plan’s easy principles.
With the $5 Meal Plan, you’ll get new ideas for new meals every week. Your meals will cost about $2 per person on average, although they will frequently be less. These recipes are simple to follow, with step-by-step directions and a shopping list included.
Cooking and grocery shopping will be a breeze with the $5 Meal Plan. Cooking healthier meals for less money is a great way to save money.
Ibotta helps you save money on groceries.
You’ll have to purchase food anyhow, so make some money while you’re doing it. You may use Ibotta to earn free money and get cashback incentives for specific items when you buy for groceries at many major stores (including essentials).
Ibotta offers cash back on grocery store purchases when you pay using the app, use the browser extension, or take a picture of the receipt.
Ibotta also works for grocery delivery services and pickup orders if you don’t want to go to the shop.
Get a $20 welcome bonus when you download the free Ibotta app.
3. Look for the best insurance rates.
Every year, Americans spend hundreds of dollars on insurance. Most people, on the other hand, do not shop around for insurance to get the greatest deal. People have a tendency to buy an insurance coverage and stay with it, even if a cheaper option is available. This indicates that they are most likely overpaying for insurance.
Did you know that by shopping around and comparing insurance prices, you may save hundreds of dollars each year? It will take a long time to phone around to different insurance providers to obtain a quotation. However, due to the internet, there are now simpler methods to get a large number of quotations in a short period of time.
Allow Gabi to do all of your comparison shopping for you.
I understand that searching for insurance and dealing with numerous providers may not seem to be enjoyable or quick, but I have some excellent news for you! Allow Gabi to take care of it! Gabi is a comparison-shopping insurance broker and agent that works for you online.
When you sign up with Gabi, the service immediately begins looking for rates that are similar to the coverage you now have. You can purchase a policy straight via Gabi after you’ve found one you think offers lower prices. Gabi will also cancel your previous insurance on your behalf. That’s what I call service!
Gabi saves her clients an average of $961 each year, and it only takes a few minutes. Even better, it’s completely free!
Stop overpaying for insurance by signing up with Gabi now.
4. Look for ways to reduce your driving time.
It is expensive to drive a vehicle. According to the American Public Transportation Association (APTA), taking public transportation instead of driving saves individuals in big cities about $10,000 per year [source].
What if your community doesn’t have public transportation? There are other options for reducing driving and saving money, such as joining an office carpool.
If you opt to bike or walk instead of driving, you will be able to eliminate using a vehicle entirely. With more and more towns becoming bike-friendly, riding a bike as a mode of transportation is safer than ever. It’s also better for both you and the environment!
“Assist me in getting out of poverty!”
Spending less than you earn is the *only* method to save money. That implies you’ll either need to cut costs or raise your revenue.
We aim to assist you in achieving both goals.
Learn the basics of building wealth at our FREE Simplify Money Workshop. Because your money has no option but to increase if you can spend less than you make. You will increase your savings and reduce your debt.
Plus, there’s more. We’ve compiled a list of free money-saving tips for you:
- How to Cut Your Monthly Bills in Half
- Debt-reduction strategies
- How to Get Started Investing
- How to make an additional $20 each month with a few simple hacks (with no extra effort)
This session will provide you with everything you need to follow the cardinal rule of personal finance: maintain your income higher than your expenditures.
Start increasing your money now by enrolling in our free 5-day Simplify Money Workshop.
5. Get Rid of Your Debt
Cash-back incentives on credit cards are excellent. However, you will be charged fees and interest if you do not pay off your amount each month. Fees and interest on credit cards are exorbitant.
Some credit cards have interest rates ranging from 20% to 24% (with some higher), and the interest accumulates over time, making it difficult to pay off.
If you owe money on a credit card, you must reduce your interest rate. You will be able to get out of debt quicker and spend less money if you reduce your interest rate.
How can you reduce the interest rate on your credit card? Using a Credit Card for Balance Transfer
Credit Land Balance Transfer Credit Cards are a great way to transfer your debt.
Credit Land makes comparing various balance transfer credit cards a breeze. If you have a high interest rate on your existing credit card, Credit Land will help you discover balance transfer credit cards with a 0% APR for 12 months (your rate will depend on your credit score).
Find the best balance transfer credit card for you with Credit Land.
6. Increase Reward Points for Regular Purchases
Keep an eye out for incentives as you pay attention to your purchasing patterns. I don’t intend to buy just for the purpose of earning points (this is a mistake). If you buy for a specific reason, though, it’s a good idea to search for ways to make money while you shop.
Use your rewards credit card to make purchases you know you’ll be able to pay off, and you’ll get 1% or 2% back. Cash-back rewards cards have been used to buy used vehicles and pay for college tuition.
Take advantage of these programs whenever feasible since rewards are basically free money.
When you shop with Dosh, you can get cash back.
Dosh is one of my favorite rewards programs. It’s a cash-back app that lets you earn free money in a straightforward manner. You earn free money every time you make a purchase at a Dosh-participating company (100,000+ locations) after you download the Dosh app and link your credit card.
You don’t have to do anything else. Dosh is in charge of all the hard lifting. Your free money will appear in your Dosh Wallet, which you may then send to your bank account, PayPal account, or Venmo account. There’s nothing quite like receiving a notice on your phone that you have money in your Dosh Wallet to deposit.
Download Dosh and get free money while shopping for a good cause.
Do you need financial assistance? Take a look at the following…
You may save money at your favorite shops by doing the following:
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The what to cut from your budget is a question that many people ask themselves. There are six ways to drastically reduce your spending, and these methods should be implemented into your lifestyle.
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