If there is one thing that defines us as human beings, it is a tendency to spend money on things we don’t need—and we do it a lot! It turns out that saving money is as simple as cutting down on these unnecessary purchases. You can cut your spending in half by either finding replacements or doing without them. While it is a simple concept, the sheer amount of money that you can save by getting rid of or replacing unnecessary expenses can be quite surprising.
One of the best examples of how you can save quite a sum of money is the coffee example. Getting coffee from a shop is a pleasure for many people each morning. It allows you to get up and feel refreshed and invigorated, and generally gives you something to look forward to. However, doing without this treat in the morning for a year could potentially save you enough money to buy a TV!
If you figure that a cup of name-brand coffee from a shop generally runs about $3, and there are about 300 workdays per year, then you could potentially save $900 over a single year from daily coffee money alone! That sum is enough to buy a nice 42 inch TV or better! You can also save on daily coffee expenses by making your morning coffee at home rather than buying it at a coffee shop every day.
There are many other examples of daily expenses you could work on. Like eating out every day instead of making food. Eating out just once a day can cost around $12, adding up to a grand total of $4,380 spent on eating out in a year. Conversely, eating at home costs roughly $4 a meal per person, adding up to $1,460 spent on eating at home a year. Those are major savings! You can save around $2,920 a year on food just by preparing your meals at home instead of eating out every day.
Be Selective with Entertainment
There are a lot of things that we can cut back on to save like seeing brand new movie releases in the theater. Going to the movies every once in a while can be a really fun outing, but don’t let it become too frequent of a habit. You don’t have to see every movie in theaters as soon as it comes out. Instead, try having a “second release” movie night at home once your favorite movies come out on DVD or a streaming service. Besides, if you save by cutting expenses you can possibly afford a new TV set up!
There are many other activities we love that can easily overtake our budget if we aren’t careful. Try re-evaluating your hobbies and think of new passions you can pursue that cost you less. Maybe you have a gym membership, but could let go of your gym membership in favor of an at-home gym, workout videos, and jogging on the nearby nature trail instead!
Let Go of Name-Brand Items
Buying name brand clothes can get very expensive. But if you do your shopping research you can find great deals on designer items, and cheaper alternatives that are just as great. There are also thrift stores everywhere, where you can buy second-hand clothes for much cheaper prices. Likewise, there are generic brands of your favorite groceries and other things you want. Ultimately, what matters in a purchase is the quality, not the brand name.
There is a wealth of subscription services out there today. If you aren’t mindful enough of your spending, streaming services and other monthly subscriptions could be the source of all your money woes. Take a moment to look at your transaction history and list all the services you subscribe to each month, like Amazon Prime, Netflix, Hulu, Spotify, Apple Music, Costco, Sam’s Club, and so many more. Re-evaluate the ones you actually use and get rid of the rest. You may be surprised by what you can do without.
It may also be possible to combine subscriptions and other monthly payments with package plans offered by your phone provider. Make sure you’re not missing out on any package deals that could cut down your monthly subscription costs.
When to comes down to it, saving money is all about using self control and good judgement in order to take control of finances and work within a stricter set of rules. It is an investment of time and effort, but it is worth it in the end!