I Asked ChatGPT How To Downsize My Life and Free Up $1,000 a Month
The internet is chock-full of money-saving advice, but most of it only improves your bottom line by a couple of hundred dollars per month. So I asked ChatGPT to take a bigger leap and tell me now to downsize my life to free up a whopping $1,000 per month.
Its plan was surprisingly human in that it acknowledged the emotional impact of major lifestyle changes. But big savings require drastic action, so it didn't shy away from asking me to make hard choices.
Here's what it said.
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Downsize Your Home
A strategic downsize can free up the entire $1,000 in savings on mortgage, maintenance, property tax and homeowners insurance, albeit at the expense of major personal upheaval. It might be worth it for empty-nesters, soon-to-be retirees and anyone who has experienced an income-reducing life event.
If downsizing isn't the right move, you can still "right-size" expenses to potentially save a few hundred dollars per month. ChatGPT recommended shopping for less-expensive homeowners insurance and addressing energy leaks in your home.
Rethink Transportation
Transportation is the second-highest spending category, according to the U.S. Bureau of Labor Statistics (BLS). ChatGPT's first two suggestions for saving are extreme but can start saving you money almost immediately.
Drop to a cheaper vehicle to reduce or eliminate a car payment and reduce insurance costs.
Sell one car if you or your partner work remotely and you have easy access to public transportation.
Shop for cheaper auto insurance and bundle it with your homeowners policy to earn a discount.
Simplify Meals
Almost 40% of American households' food budgets -- $3,933, on average -- goes to food consumed away from home, according to the most recent data from the BLS. ChatGPT had three suggestions for making it cheaper and easier to cook at home, which also reduces your reliance on takeout and deliveries.
Plan theme nights, such as "pasta Mondays" or "sheet pan Wednesday," that make meals easy to plan and prep. If you can cook them in large batches and freeze the leftovers, all the better.
Buy high-volume items such as snacks, breakfast staples and cleaning supplies in bulk.
Add convenience meals to your rotation -- think frozen pizza and salad, and rotisserie chicken tacos.
Scale Back Kids' Activities
A study from the Aspen Institute's Project Play initiative found that the average U.S. family spends nearly $1,500 per year for one child's sports experiences. The chatbot acknowledged that kids' activities are an emotionally charged subject, but the potential savings make it worth a closer look at what you're spending. It suggested these cost-cutting measures:
Limit the number of activities each child participates in.
Devote one season each year to low-cost and school-based activities.
Trade travel teams for local leagues and recreational programs.
Reduce Subscriptions
ChatGPT suggested scheduling a family subscription audit day to calculate what you're spending on streaming services, apps, cloud storage, subscription boxes, book/newspaper/magazine subscriptions, gaming passes, gym memberships and shopping memberships. Then:
Eliminate subscriptions you're not using at least once a week.
Rotate through as many of the others as possible. Rather than subscribe to two TV streaming services, for example, keep one paused until you run out of things to watch on the other.
Slash Debt
Credit card interest rates average more than 22%, per the Federal Reserve, so reducing your interest and paying down balances can save you a lot of money. ChatGPT recommended potentially consolidating high-interest debt with a personal loan, which can cut your rate in half, or a balance-transfer credit card. Using the freed-up funds to pay the debt off faster delays the positive impact on your budget but saves you much more in the long term.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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