Cutting out specific costs can save you over $30,000 in expenses for just one year. Below are things that you can seriously reduce or drop altogether to save a significant amount in just a year.
- Monthly car payments
The average monthly car payment is over $6,000 a year. If public transportation is reliable in your area, do not buy a new car. Taking the bus, walking, or riding a bike will save you lots of money. Alternatively, you can get a used car and save half of your costs.
- Mobile phone plans
In 2019, the average American household paid almost $1,500 in mobile phone related costs. An easy way to cut costs is to add fewer friends and family members to your plan or by changing your plan outright. Remember to compare prices among carriers, too.
The national average cost of rent is almost $20,000 per year. If you can bring in a roommate or move to a different city with a lower cost of living, your rent expenses will lower dramatically. If you have accommodating family members, you can also move in rent-free for a short time. Moreover, if you have an extra room in your house, consider renting it to travelers. Just list your space on vacation rental websites and you can earn passive income.
How much do you watch on your cable TV anyway? Does it justify over $2,000 in cable bills annually? If you want to keep this money in your bank account instead of paying it to the cable company, consider cutting the cord, especially if you have streaming services subscriptions.
- Dining out
The average American household spends over $3,000 in dining out per year. Of course, there is nothing wrong with enjoying a nice restaurant meal but if it becomes a habit, your budget may suffer. Cooking at home will always be cheaper!
- Gym membership
You can very much workout at home for free. Check out YouTube for free exercise programs and save around $700 annually.