Start The New Year Off Right With These Top 7 Ways To Cut Your Expenses
Reducing expenses can be pretty tough. You know you need to do it, especially after all that holiday spending, but it is easier said than done. There are plenty of ways to save money and start hacking away at those costly expenses each month. Unfortunately, putting a plan into action is not something most people do.
The effort and sacrifice that comes with cutting expenses and saving more money each month can be too much to deal with. On the other hand, doing so can not only save you money, but also help you kick off the New Year with better lifestyle habits overall.
At RocketBNK, we know these challenges exist. This is why we asked our financial experts for a bit of advice, compiling a list of ways you can cut expenses in 2020. Ready to save more money this year and reach financial wellness? Read on!
1. Make money smart commute choices
If you have a car and commute to work, friends’ houses, and/or the mall, you may be able to cut expenses in one easy way — stop driving as much. Did you know that driving an average car can cost in excess of $9,000 per year? Here’s some data from the American Automobile Association (AAA):
Not driving as much can save you some serious cash in 2020. In fact, if you reduce driving by just 25 percent, you can put away $2,000 to $3,000 in your savings this year alone. And you are also helping the planet at the same time.
2. Call your insurance company and negotiate
If you must drive, you can cut your car insurance expenses by a lot if you make a phone call. When you got your car insurance, the agent probably rattled off numbers and legal terms only a lawyer could decipher. So you may be paying way more for car insurance than needed.
By simply calling your insurance company and increasing your deductible can cut costs. For instance, you monthly premiums could be much lower by going with a $500 deductible as opposed to a $250 deductible. Now that being said, you should drive safe, because if you do need to pay a deductible, it will be much higher.
3. Take a serious look at your cable, phone, and internet services
Are you paying too much for your cable, phone, and internet services? You very well could be. To cut expenses in this department of life, you will need to do a bit of due diligence. However, the time spent could save you some serious money every month.
One strategy is to bundle all three services into one. This can be done by finding a service provider that has all three, like AT&T for instance. You can save even more by ditching those premium channels. Sure, you may not be catching the latest series on HBO, or the game on ESPN, but you could save more than $1,000 in 2020.
4. Eat healthier, save money, and feel better in 2020
If your diet consists of fast food and/or Uber Eats delivery, you may be wasting a ton of money and putting your health at risk. Even dining out more than twice a week can add up pretty fast. For example, if you eat at an average restaurant twice a week, you are probably spending between $30 and $40 per meal with tip. Maybe even more.
If you simply don’t dine out twice a week, you can save around $3,200 to $4,160 per year. That is a ton of yearly savings. By not dining out or eating fast food, you are also on the road to better health, and that will pay off big time down the road.
5. Consolidate as much debt as possible this year
Most of us have some type of credit card debt, student loans, car payments, mortgages, and the list goes on. Having debt can really but a roadblock in front of your efforts to cut expenses in 2020. This is because of the high interest rates you may be paying.
Did you know that the average family credit card debt is around $6,849? Here’s some other debt calculations from NerdWallet:
To cut expenses and save some money this year, you can consolidate your debt and get lower interest rates. This is done via a loan, credit card with lower interest rates, and other options.
6. Stop smoking and drinking as much or altogether
This very important way to cut expenses in 2020 not only saves you money, but could add a few years onto your life. A person that smokes three packs of cigarettes per week is paying around $9 per pack, $27 per week. That’s $1,404 per year.
Add drinking to the equation and you could be smoking and drinking in excess of $3,000 to $5,000 per year. That could be some pretty decent savings at the end of 2020 if you stop smoking and drinking.
7. Stay up-to-date on what RocketBNK is doing
RocketBNK is all about helping people amp up their financial wellness. And 2020 is our year. The RocketBNK app will be launched in a few short months, giving you access to financial wellness features like:
- Getting paid on your terms
- Bank account
- Spend analysis
- Credit information
- And tips to help you save money
Join hundreds of others ready to launch with RocketBNK in 2020 by signing up today. It’s Payday Your Way — getting paid on your terms.