Small expenses can quickly eat away at a budget and make it harder to save or do the things that matter to you! By cutting these 5 items from your budget, you may be able to save more, invest, or finally plan the vacation you’ve been dreaming of.
The average American spends $1,100/year at coffee shops according to Acorns MoneyMatters. A large can of basic coffee grounds costs around $8 and makes approximately 200 cups of coffee. The math proves that going out for coffee is busting budgets nationwide! You could save upwards of $1,000/year by cutting your coffee buying habit. If you don’t think you can cut cold turkey, try making the switch to homebrew a few days a week and watch the impact on your account!
Savings: $1,000+ per year
It’s time to get back to the brown bag (or perhaps a more environmentally friendly lunch tote) and cancel your weekly lunches out of the office. Spending $8 on lunch 2 – 3 times a week can make a HUGE impact on your budget in the long run. Alternatively, spending $20 on quality groceries will last you the entire week and your bank account will thank you!
Savings: $208.00 per year
Expensive Gym Memberships
Health is important but here are the facts: the average gym membership is $58/month and 67% of gym memberships go completely unused, according to the Statistic Brain Research Institute. While many gym memberships are only $10/month, that’s roughly $180/year when you factor in the joining costs and annual fees. If you are looking to cut costs and don’t utilize your gym membership like you want to, a simple Google search will reveal thousands of free resources that can help you learn new moves and stay active on your own time!
Savings: $180.00 – $696.00+ per year
Did they hook you on the free trial and now you’re spending a fee every month on a product you don’t use? Yeah, me too. Take time to look through your eStatements each month and make sure there aren’t any extra expenses from subscriptions you don’t use. Sure, the $10/month may not seem like a lot but that’s $120/year you could put toward saving for a home, a new car, or retirement.
Savings: $120.00 per year
The cost of cable TV has risen by 50% since 2010, which means consumers are spending about $107/month for their cable or satellite. It’s time to cut the cord and move into more affordable broadcasting options! According to a survey conducted by the Pew Research Center, 61% of millennials primarily watch television through a streaming service, such as Netflix, Hulu, and others. And for good reason, since multiple streaming services can be accessed for under half the cost of basic cable TV. Cutting cable and making the switch could save you $50 or more each month depending on your services.
Savings: $600 per year
Potential savings per year: $2108.00 – $2624.00+
If you want more out of your finances but find yourself spending much of your paycheck on one or more of the above categories, it may be time to reevaluate your budget. You can learn how to create your budget here!