Americans have already cut back considerably on their spending due to the cumulative 20% inflation of the past three years. How could it be possible to cut back more, you may ask.
There are seven relatively painless areas you may not have thought of that could save you as much as $5,400 a year, GOBankingRates reports.
1.) Brand-Name Products
From groceries, to clothes, to household cleaning, to health and wellness items, most people reach for the top shelf.
In many cases, generic names can be just as good as top brands, says Tanya Peterson, a consumer finance expert with Achieve.
“Store-brand groceries can cost at least 10% less than brand names,” says Peterson, whose company helps people manage debt. “This means a family who spends $500 a month on non-brand-name groceries could save $50 a month.
Younger and more well-to-do people are shopping in bulk at Costco and Sam’s Club, for instance, joining forces with family members, friends and neighbors, The Wall Street Journal reports.
2.) Gym Membership
Many people have a gym membership but don’t use it regularly. This nicety is something you may want to reconsider.
“During the COVID-19 pandemic, many people found they like exercising outside — particularly as nicer weather is upon us — or at home with their own equipment and/or use of DVDs or online exercise programs,” Peterson says.
3.) Unlimited Smartphone Data
Your phone’s unlimited data may be costing you more than you realize, says money saving expert Andrea Woroch. She recommends households switch to lower-tiered plans or an online-only carrier, like Mint Mobile, which charges just $15 a month for talk, text and data if you commit to a 12-month contract.
Woroch estimates this simple switch can save $540 a year.
4.) Video Streaming Services
The average U.S. household spends $114 a month on video streaming sports and entertainment.
Cutting back on Netflix, Hulu, HBO Max, etc., doesn’t mean doing away with entertainment entirely, Woroch says. You might be able to get free streaming services from your wireless provider — Sprint and T-Mobile are offering some deals.
Another option is your local library. Some are offering free video services, she says. Libraries also loan out music, movies, games … and books!
5.) Bank Fees
Some banks are charging monthly fees if your balance is below a certain threshold. Why not shop around?
“Open an account with an online bank that offers free checking accounts with no minimum balance necessary,” Woroch suggests.
6.) Attic Insulation
Few people give much thought to their attic other than for storage. Insulating an average-sized, 1,000-square-foot attic could save $420 a year, Peterson says.
7.) Takeout
Last but not least is takeout orders. A guilty pleasure, for sure, takeout can easily cost a family $60 a week or more, Peterson says.
“Save that, and you’ll save more than $3,000 in one year,” Peterson says. “Avoid spending just $20 a week amounts to more than $1,000 in just a year.”
