Looking for ways to cut your spending and put more money in the bank? We’ve put together 20 ways to help you minimize your expenses.
Try out these tips on how to cut expenses every month. From getting rid of unnecessary bills to switching up your everyday habits, this guide will help you cut your spending and pocket more Benjamins.
1. Lower your transportation costs
Lower your transportation costs by using public transportation, joining a carpool, or riding your bike. The average American spends about $3,000 per year on gas. Compare that to a monthly bus pass that costs about $38. That’s a savings of around $2,544 a year!
If the bus isn’t an option for you, consider selling your car and finding a different vehicle with a lower monthly payment. If you have a good credit score, you can look into refinancing your car. After all, banks and credit unions often give you a better interest rate than dealerships.
2. Reduce your interest rate
If you have a history of good credit, on-time payments, and low credit utilization, your credit card company may be able to reduce your interest rate. You can also do a balance transfer and move your high credit card balances over to a 0% interest card.
Bad credit? Consider a MoneyLion Credit Build Loan! You can improve your credit score by up to 60 points while borrowing up to $1000–no hard credit inquiry required.
3. Bundle your insurance
Save money monthly by calling your insurance provider to see if they offer any bundles. After that point, you can bundle either your home and auto insurance together or your renters and auto insurance together. Make sure you shop around for deals and compare the many offers out there before making your final decision.
4. Cut down on energy bills
The average American spends at least $2,200 per year on home utility bills, which include electricity, water, and gas. Cut your costs by using power strips with built-in timers like this one. Change out your light bulbs in favor of LED bulbs, and turn off all lights in your home whenever possible. You can also lower the temperature on your water heater, unplug appliances when they are not in use, and shut off your heater on warm weather days.
5. Say bye-bye to cable
Utilize inexpensive alternatives when it comes to your TV-watching habits. Major cable providers charge around $44.99 a month which is on the low end. However, you can cut costs even more by switching to Hulu which offers plans as low as $5.99 per month. Another option is to ditch the TV altogether and focus on spending your time more productively. Read a book, listen to a podcast, or catch up on your sleep instead!
6. Cancel unnecessary subscriptions
Cancel subscriptions that you aren’t using anymore. When it comes to subscriptions that you do still use, think about whether or not you really need them. Consider canceling clothing subscriptions, magazines, or beauty boxes. The average person is spending $238 a month on subscriptions. You can use Truebill to scan through subscriptions and easily cancel the ones you no longer need. Getting rid of even just one subscription could mean saving $11.99 a month, which is $143.88 annually! It adds up.
7. Find a nanny share or group childcare
Use Nanny share to cut costs on child care by sharing the price tag with another family. Work with friends and family to create a babysitting system where you can switch off watching each other’s kids. Or, check out churches that offer lower rates for childcare as part of their ministry.
8. Work out at home
9. Change your cell phone service
Stop overpaying for your cell service. One way to cut costs is by switching carriers from big companies to smaller providers. If you’re using a major cell carrier, switch to a smaller alternative that uses the same towers!
10. Use coupons
Download a browser add-on that will automatically scan the internet for coupons on your purchases. Honey helps you find the best deals on your favorite items. You can also grab a coupon from Groupon or scan your local grocery store ads for major savings.
11. Refinance your home
If you own your home, you might be eligible to refinance your mortgage at a lower rate. Contact lending institutions to lock in a lower rate and save money over the life of the loan. Lenders like Sofi to lower your monthly payments and increase your cash flow with rates as low as 2.38%!
12. Meal prep
Meal prepping and cooking at home can cut your expenses drastically. The average price per serving of a home-cooked meal is $4.31. On the other hand, the average cost of eating out is $20.37, so the difference is shocking. Find easy meal prep ideas and great recipes on Pinterest.
13. Buy generic foods
When shopping for groceries, opt for store brands over name brands. You can often get the same product for a lot less. The difference in cost is anywhere from a few cents to a few dollars. You could save up to 25% by shopping store brands instead of name brands.
14. Stop paying for things you can do yourself
Cut out services that you can do yourself. Convenience comes at a cost. Opt for pickup instead of delivery when ordering food or groceries. Learn how to do your own beauty routines like waxing your eyebrows or painting your own nails. You can find great tutorials on Youtube if you need guidance!
15. Create cash envelopes
An easy hack for saving money is to know what you are spending every month. You might be spending more than you think if you don’t keep a close eye on your expenses. Set up a budget and pay for things in cash. With a cash envelope system, you’ll know exactly how much you have to spend every month, and you can track what you spend in a more manageable way.
16. Shop at discount stores
Check pawn shops and thrift stores for name-brand items or vintage finds. You might be surprised at what you can find thrifting for a fraction of the price. Check out this article on thrift store hacks.
17. Get a roommate
If you have an extra room, rent it out. Screen potential candidates until you find a good fit. Advertise on Roomies to find your next roommate. You could be saving over $500 a month on living expenses alone by sharing your rental costs.
18. Make coffee at home
You don’t have to cut the coffee habit. Just brew your own. The average American spends nearly $14.40 a week on coffee. But when you make your coffee at home, the average cost is closer to an average of $0.16 and $0.18 per week.
19. Get things for free
Cut costs by getting things for free like books, music, and magazines. Visit libraries, listen to music on Youtube, and stream movies via free online platforms. You can even complete surveys on Survey Junkie in your spare time for free gift cards, which essentially make purchases made with gift cards feel like they’re free since it’s not your money!
20. Stop paying bank fees
Switch to a bank that doesn’t charge you any fees. MoneyLion offers a RoarMoney bank account with a $1/month administrative fee. Use your RoarMoney virtual debit card or MoneyLion Debit Mastercard and you earn cash back on purchases!
Time to save that money
Small savings can go a long way. While it’s easy to cut some expenses immediately, some of these tips will save you small amounts of money over time. Keep in mind that these small savings can compound to create big wins at the end of the year. Be patient, keep your financial goals in mind, and focus on reaching them by applying these tips!