Eating at Home
In 2019, the average family spent $3,526 annually on dining out, along with $4,643 on groceries. Overall, food spending accounts for 12.9% of total expenditures in the United States.
While dining out can often be expensive, you can also reduce spending at the grocery store. Shift from brand-name products to generic or store-brand products, as store-brand items are usually cheaper. While shopping, don’t hesitate to ask for discounts. Most large grocery stores will have a loyalty or discount card, allowing you to purchase goods at a lower price, and possibly receive coupons for future use.
Note: When shopping regularly at stores, try to stick to the items you actually need rather than those you want. While some splurging may be acceptable, even avoiding the strategically placed snacks at checkout can significantly impact your grocery cost each month.
Reducing Your Mobile Bill
Traditional mobile phone companies can be costly. Companies like Verizon will charge an individual $90 per month plus taxes and fees for the best unlimited plan. Their cheapest unlimited plan, which costs $70 before taxes and fees, does not include 5G ultra wideband coverage, limiting your access to the latest communication technology.
You can save a considerable amount of money each month by switching from one of these providers to an alternative provider like Mint Mobile or US Mobile. The cost of Mint Mobile’s unlimited plan is only $30 a month, including taxes and fees, and they will start to throttle internet speeds after you use 35 gigabytes of data. In comparison, US Mobile will charge you $45 per month for an unlimited plan, plus taxes and fees, with no speed restrictions and free data in 144 countries. With a family plan, you can reduce this cost to $25 per month per line.
Note: It is not guaranteed that cost-effective mobile services will be the most efficient. Before switching to operators, make sure to research the services that will best fit your lifestyle and budget.
Skipping the Gym Membership
Unless you are in urgent need of powerful exercise equipment, it may make sense to cancel your gym membership and choose to work out at home. The average cost of a multi-purpose gym is $75 a month, plus an additional $82 registration fee, according to the International Health, Racquet & Sportsclub Association (IHRSA). If you are an avid athlete or need gym equipment to maintain a healthy lifestyle, paying $900 annually might be warranted, but for others it may not be.
Bodyweight exercises, which are done simply using your body weight, are just as effective as using free weights or weight machines. Alternatively, you could choose to invest in a set of dumbbells and resistance bands, which can be purchased for under $100 at stores like Walmart.
Most importantly, these workouts can be done at home for free. Social media platforms like YouTube, Instagram, and even TikTok are home to many free workout videos you can follow, ranging from group yoga sessions to HIIT training.
Stopping Cable TV Bills
Paid television, such as cable and satellite TV, has been declining over the past several years. The percentage of American adults who watched TV via cable or satellite was 76% in 2015, and by 2021, that number had dropped to 56%, according to a recent study from the Pew Research Center. One of the main reasons for cutting the cord or not getting cable service in the first place, according to research, is the cost of cable services.
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Live streaming services like Netflix, Hulu, and Disney+ are on the rise in popularity, enticing consumers with their prices as well as their options for original content, classic television shows, and live television. The high plan from Netflix costs only $17.99 per month, while the ad-free Hulu is only $11.99 per month. In comparison, the average cable bill in 2019 was $217.42 per month.
Note: The cost of streaming services increases significantly with the addition of live television. However, it may be advisable to pay $64.99 per month for Hulu with live television for a family of four and enjoy streaming television on multiple screens, with this price rising to $70.99 per month with the ad-free option.
Investing in Energy Efficiency
The average American household spends $2,000 annually on utility bills, but it’s possible to save at least 25% of that each year by adopting energy efficiency practices, according to the Department of Energy. These methods include:
- Lowering the temperature of the hot water heater to 120 degrees.
- Adding insulation to the attic.
- Installing a programmable thermostat, or considering upgrading to a smart thermostat that automatically adjusts the room temperature.
- Plugging electronics into power strips and turning off the strips when not in use.
- Using energy-intensive appliances, such as dishwashers, during off-peak hours.
Conclusion
There are many ways to reduce the cost of living, whether by changing residence, swapping your vehicle, or living with a roommate. But for those who do not wish to make major changes in their lives, there are numerous ways you can reduce your monthly expenses. By taking small steps to cut back on monthly spending, you are one step closer to financial stability.
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Sources:
– Bureau of Labor Statistics. “Consumer Expenditures – 2019”. Accessed April 12, 2021.
– Verizon. “What is 5G?”. Accessed April 12, 2021.
– Verizon. “It’s Unlimitingly Built Right”. Accessed April 12, 2021.
– Mint Mobile. “3-Month Plans”. Accessed April 12, 2021.
– US Mobile. “Something for Everyone”. Accessed April 12, 2021.
– International Health, Racquet & Sportsclub Association. “A Brief Guide to Gym Membership Rates from IHRSA Success Files”. Accessed April 12, 2021.
– Mayo Clinic. “Are Bodyweight Exercises Effective for Strength Training?”. Accessed April 12, 2021.
– Pew Research Center. “Cable and Satellite Television Usage Has Declined Sharply in the U.S. Since 2015”. Accessed April 12, 2021.
– Hulu. “What are Hulu’s costs and commitments?”. Accessed April 12, 2021.
– Netflix. “Plans and Pricing”. Accessed April 12, 2021.
– Consumer Reports Magazine. “CR 2019 Cable Bill Report: How Cable Companies Use Hidden Fees to Hike Prices and Obscure the True Cost of Service”, page 6. Accessed April 12, 2021.
– Hulu. “What are Hulu’s costs and commitments?”. Accessed April 12, 2021.
– U.S. Department of Energy. “Energy Savers: Tips to Save Money and Energy at Home”, page 3. Accessed April 12, 2021.
Source: https://www.thebalancemoney.com/painless-ways-to-cut-your-spending-1388550
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