You have the potential to save tens of thousands of dollars by putting aside these expenses for just one year.
If you've scanned your budget and feel there's no more room for cuts, take a closer look. There are likely some expenses you can still trim or eliminate, potentially saving you thousands annually.
We've identified examples of these costs and provided strategies to cut them if you're determined. Eliminating all these expenses could save a substantial amount—around $36,140 per year on average.
Even by reducing just 10% of these expenditures, you could be around $3,614 richer by this time next year.
1. Rent
As of September, the national average rent stood at $1,722 per month, totaling $20,664 annually, as reported by real estate research company Yardi Matrix.
Consider relocating to a more affordable area or getting a roommate to significantly reduce housing costs. Moving in with accommodating family members might even provide a rent-free option, at least temporarily.
For those with extra space at home, renting a room to travelers through platforms like Airbnb, Homestay, or VRBO can be a viable option to offset housing expenses.
Potential annual savings:
- Giving up the expense: $20,664 (based on national average rent)
- Reducing the expense by 10%: $2,066
As of December, the average monthly new-car loan payment hit $736, totaling $8,832 annually, as reported by Edmunds.
Consider choosing used vehicles over new ones to save money. Ideally, saving enough to buy a used car outright can help avoid interest payments. If that's not feasible, making a larger down payment can still lower your monthly car payment.
Exploring alternatives like public transportation, walking, or biking instead of owning a personal vehicle can result in significant savings. Depending on your driving habits, a ride-share service like
Lyft or
Uber might also be a cost-effective option, saving not only on car payments but also on insurance, gas, and the substantial expense of car depreciation.
Potential annual savings:
- Giving up the expense: $8,832 (based on the average new-car loan payment)
- Reducing the expense by 10%: $883
In 2022, American households spent an average of $1,284 annually on cellular phone services, based on the
latest data from the Bureau of Labor Statistics.
To trim costs, consider adding friends or family to your plan or adjusting your current plan. If you don't heavily rely on your mobile phone or spend ample time at home, think about dropping your mobile service or opting for a prepaid plan.
Potential annual savings:
- Giving up the expense: $1,284 (based on average household spending)
- Reducing the expense by 10%: $128
It's okay to take a break from cooking now and then, but let it become a habit, and it can cost you a couple of hundred bucks monthly.
The average U.S. household spends $3,639 per year dining out, as per the Bureau of Labor Statistics. Cooking at home is a more budget-friendly option.
Cutting back on restaurant spending can significantly impact your budget.
Potential annual savings:
- Giving up the expense: $3,639 (based on average household spending)
- Reducing the expense by 10%: $364
5. Television Subscription
If you haven't ditched cable yet, it's worth considering. The average household cable TV plan costs $83 per month, totaling $996 annually, as of February, according to
CableTV.com.
Cutting the cord can significantly reduce this cost, thanks to the many free and affordable alternatives available. Lowering costs is good; getting something for free is even better.
Potential annual savings:
- Giving up the expense: $996 (based on the average cable and internet package)
- Reducing the expense by 10%: $100
6. Fitness Club Subscription
If you're a dedicated gym enthusiast making the most of your monthly membership, that's commendable. However, many of us sign up in a burst of motivation and end up quitting after a few months. Unfortunately, the gym contract may keep you paying, whether you use the facility or not.
According to
Strong Home Gym (as of October 2022), the average gym membership is around $50 per month, totaling $600 annually.
Consider the option of working out independently, especially if the COVID-19 pandemic has already prompted you to exercise at home for free. Regular running or walking and a home strength-training program can help you eliminate gym fees altogether.
Potential annual savings:
- Giving up the expense: $600 (based on the average monthly gym fee)
- Reducing the expense by 10%: $60
7. Cinema Tickets
The average cost of a movie ticket was $10.53 in 2022, according to the latest data from the National Association of Theater Owners. Prices have been steadily rising since at least 1971 when the average ticket cost was $1.65.
Considering a family outing to the theater now that the pandemic is easing? It can add up.
If you're not ready to give up on movie theaters completely, there are cost-effective alternatives. For instance:
- Attend matinees.
- Utilize senior discounts.
- Explore independent cinemas that offer lower prices for earlier releases.
Potential annual savings:
- Giving up the expense: $126.36 (based on the average movie ticket cost, assuming one movie per month in a theater)
- Reducing the expense by 10%: $13\
