WHAT UP THO FAM! We are on this journey, friends. We’re doing great. In the last “Get Started” step, we sat down and tracked our income and expenses for the last three months. Was it painful? Fun? Enlightening? Honestly, I hope it was a combination of all three. No pain, no gain, remember? Now, we’re going to spend some time finding IMMEDIATE money savings.
We’re starting by trimming the fat. Not a great visual, but there you have it. Here’s what we’re going to do. We’re going to evaluate some of the areas in your expenses where, with just a little bit of time, you can minimize the expenditure. This can save you THOUSANDS over the long run. This is how we save money fast, friends!
Minimizing the expense means you’re optimizing your money. Take a look through the list below, and pause on anything that is relevant to you. Maybe choose 2-3 of these areas to tackle. Or more! It’s your world, we’re just livin’ in it!
This is an important point, so listen up. If you discovered you typically spend more than you make each month, I don’t care how much value you’re getting out of your monthly wine subscription, you can’t afford it. It’s tough, but if the number at the bottom of your spreadsheet was negative, we’re not simply trimming the fat, we’re trying to SAVE YOU FROM YOURSELF.
Here’s another important point. This is only ONE STEP in optimizing your money. Spending less is one way to increase your savings. The other way is to increase your earnings. So, once you absorb the information below, don’t stop! Let’s keep going to get you where you want to be on your financial journey.
Subscriptions
This is your Netflix, Hulu, HBO, Disney+, StitchFix, Amazon, Spotify, Book of the Month, Wine of the Month, Anything of the Month clubs. Look for recurring expenses that are the same amount each month or each year.
Do you use every single subscription? If the answer to that question is no, we have a clear path before us, my friend. You need to cancel anything you’re not using. Likewise, if you aren’t getting the value you want out of something, cancel it.
Can you cost-share your streaming subscriptions with your friends or family? Consider sharing log-ins on apps that allow multiple users. Partner up and split the cost. Or, let your friends use your Amazon Prime account for a couple extra dollars.
Internet
Nope, I won’t be advocating for you to nix this from your budget. I live in reality, and know it’s not possible to function without home internet. HOWEVER, let’s take a quick minute to see if we can bring the cost down. Call your provider. Ask for a discount. That’s it. The answer is either yes or no.
Others have done this better than me, so I’m going to link to a couple of scripts and tips for you to check out:
- Ramit Sethi, author of I Will Teach You To Be Rich, has a terrific e-book with some exact scripts to reference.
- This is a Business Insider article with some helpful tips as well.
- Here is an ultimate how-to guide for assessing, researching and negotiating your internet bill.
If your provider won’t bring down your monthly cost, call another provider and get a quote. If that quote is lower, switch your internet over to the new provider. I know this is a pain in the booty, but do the math. If the savings are significant and the services are comparable, it’s worth it.
Phone Bill
Do you really need the Unlimited Data plan? Or the iPhone86?
Look in your phone’s Data Usage folder and check how much data you use on a monthly basis. If you have any margin, or can fathom using your data less each month, call your provider to see about a lower priced plan. Often, opening the conversation up and allowing the representative to help you brainstorm solutions can be helpful “I need to get my bill down to x amount. Can you help me figure out how to do that?” Be kind, but firm.
Likewise, take a look at your bill. Are you paying for a service you don’t need, like insurance on a 4-year old phone? If so, cancel it. Easy money.
Another tactic to save THOUSANDS is to hang on to your “old” phone for a bit, rather than upgrading every other year. I promise, a newer, cooler phone will come around if you wait long enough.
Car Insurance
It’s necessary, so don’t go cold turkey here. But, policies vary widely, and it’s possible you’re paying more than you should.
Consider the type of coverage you have. If your car is older or wouldn’t cost much to replace, you may be able to find immediate money savings by dropping the comprehensive coverage.
Remember that the higher the deductible, the lower the premium. If you have the money in a savings account, and don’t plan to touch it, it may be worth moving to a higher deductible plan. Do not take this step unless you can afford to pay the deductible!
- Deductible: This is a specified amount of money you must pay before the insurance will kick in to cover anything. The higher this amount, the lower the premium.
- Premium: The premium is the cost of the insurance, which may be paid on a monthly, quarterly or annual basis.
Shop around. Most insurance providers will give you a quote online – check out a couple of providers to make sure what you’re paying is standard.
It’s important to remember that sometimes a better service experience or more responsive representatives can be worth a few extra dollars each month. If you get in a wreck while carrying low-cost insurance, and end up spending hours and hours working through the process with your insurance company, the hassle may not be worth it. In this case, cheaper is not always better.
Cable
This is one I’ve lived without for so very long, so my initial advice is to simply cut the cord. Speaking of immediate money savings!
But, if there are absolutely no other alternatives for you, this is another area where a call to your provider can save you money. Being kind but firm goes a long way in reducing those costs.
Again, I want to reiterate here – if you are spending more than you are earning each month, this is an AUTOMATIC OUT. Do not walk, RUN to the phone to get your plan cancelled.
Gym or Specialty Workout Classes
Alright, this one is incredibly personal, but it deserves a mention. There are so many different options, some of them incredibly low cost!
Did you know you can get barre, HIIT, strength, sculpt, pilates, boxing, yoga and other classes online? YouTube is full of free workouts, and services like Obe or Beach Body on Demand offer hundreds of class options at a low monthly price.
Or, if you have the space in your house, apartment or garage, an inexpensive set of weights can replace the majority of the exercises you do in a gym.
Some of us need the motivation of a set class time and the accountability of an instructor to be able to put their exercise first. But consider an accountability group with friends or an activity tracker to help keep you on track for a lower monthly cost.
Again, health is incredibly important so you have to do what makes the most sense for your personality and your needs, but knowing there are lower cost alternatives out there can’t hurt!
Personal Services
Things like hair cuts, pedicures, manicures and massages can add up. Even though we all want to look and feel our best, there are plenty of ways to eliminate or minimize expenses in this category.
Try at-home manicures, pedicures and waxes. Investing in a simple kit and spending some time to learn the best practices can help you eliminate big chunks out of your spending each month.
Or, try to go longer between appointments. Maybe instead of ongoing maintenance, you begin to treat it like a reward or a luxury.
If you’re relying on these personal services for your self care time, look into incorporating some free self care ideas instead. Same impact, zero dollars needed!
Meals
Did you know food is one of our three biggest expenses in America? Housing, transportation and food make up more than 50 percent of an average American’s budget. When push comes to shove, eating in will almost always be less expensive, but there are ways to find immediate money savings when it comes to your meals.
Plan ahead and take your own lunches to work, and cook at home in the evenings. Check out the $2 meal cookbook from Choose FI. Each meal is easy to make, and only costs $2 per person. That’s a win for sure!
Come to think of it, just planning ahead can help! Meal planning allows you to avoid that last-minute refrigerator scavenger hunt that always ends up with you swinging through your local drive-through. It also gives you the ammo you need to say ‘no’ when coworkers are heading out for that expensive mid-day lunch break.
When you do go out to eat, order water. Ex-nay on the fancy juices or sodas or coffees. Ordering water instead will save you anywhere from $2-6 (or more!) dollars per meal. Another easy, immediate money savings? Cut out the alcohol while eating out. You can save enough money to buy a great bottle of wine to drink at home, just by ordering water while out.
In Conclusion
Remember, gaining some immediate money savings with these steps is just the beginning. We need to continue building a healthy mindset and healthy habits around spending money. We also want to focus on increasing the gap between spending and saving by earning more. And why do we want to save more? Because savings rate + time equals MAJOR results for our finances.
Tell me in the comments below what expenses you cut out or minimized. How much money did you save?
subscriptions were my #1 biggest unaccounted for expense. It’s crazy how much a few can add up to each month. Great tips!