If you are really determined to build your savings, how about a challenge: can you give up these costly expenses for a year in exchange for thousands of dollars? Consider cutting the following expenses and you can save anywhere from $3,000 to $30,000 in just one year.
The average bill for rent is over $16,000 annually. Simple things to lower this expense includes moving in with a friend or even moving to a city with a lower cost of living. Alternatively, you can consider renting a free room to travelers to offset your costs, or the most drastic, move in with family again, at least temporarily, to go rent-free.
- Car payments
If you do not buy a new car, this is already thousands of dollar staying put in your bank account. If you really need a vehicle, buy used to save money. The best frugal scenario is to give up a personal vehicle therefore getting rid of all the costs associated with it. Just take public transportation, walk, or ride a bike to cut costs big time.
- Gym membership
Sometimes, a gym membership is worth it; more often, it is not. If you only go occasionally, if not rarely, it is best to stop paying the expensive monthly payments. The costs vary, but on average, you pay about $700 on gym memberships annually. Why not keep the money and exercise on your own at home or outdoors?
- Eating out
Occasionally, it is okay to dine out. Sometimes you are just too tired to cook and that is fine. However, if eating in restaurants becomes a habit, it can set your budget back over $3,000 a year. Cooking at home is just infinitely cheaper and it will make a big difference for your budget.
- Cable TV
Do you think your bank account will benefit from an extra $2,000 yearly? Consider cutting your cable TV. It is not as bad as you think. There are many alternatives like YouTube and other free streaming services online. Will you choose to give it up and save money?