![]() The vast majority of Americans drink coffee daily, and many choose to pick up a latte on the way to work.Ĭoffee brewed at home costs around $0.25 per cup, while the average coffee at a cafe costs $2.70. Evaluate your biggest expenses firstīefore you spend too much time optimizing small expenses like coffee or entertainment, it’s wise to take a careful look at your major expense categories.įor instance, can you reduce your housing expenses by moving to a smaller home? Can you shop around for better rates on insurance, e.g., health, automotive, homeowners?īy focusing on these big categories first, you can potentially uncover some helpful ways to significantly reduce your expenses - and then move on to optimizing other spending categories. If you notice that you’re spending more than you'd like on groceries, you can try to trim that down by making some simple low-cost swaps. This is where you can start making adjustments to your spending patterns. Once you have tracked your expenses for a few months, you’ll have some solid data on where your money is going each month. ![]() Track your spending for a few months, then analyze your spending habits to see if they align with your goals. To start tracking, it’s helpful to use a budgeting app like Mint, which is free to use, or YNAB, which is subscription based after a free trial. You surely know how much you spend on rent or your car payment - but what about variable expenses like groceries or entertainment? The reality is that many people simply aren’t sure how much they are spending on certain things. By doing so, you can get a handle on what you’re spending every month and then make changes where needed. One of the most powerful steps you can take towards saving more money is to start tracking your expenses. Tally helps qualifying Americans consolidate credit card balances into a lower-interest line of credit. Want to expedite paying off credit card debt? Look into Tally†. You’ll pay less in interest, plus you’ll have lower monthly expenses as the cost of debt payments decrease. And with interest rates rising, costs are getting higher by the day.ĭata from the Consumer Financial Protection Bureau shows that the average American household spends over $1,000 per year on credit card interest and fees. Pay down high-interest debtĭebt can be a costly burden - especially when it comes to high-interest debt like credit cards. That’s a total cost savings of $180 per month, or about $2,160 per year. If you swapped out this daily lunch for a home-cooked meal, the cost would decrease to around $80 per month. That’s over $260 per month on lunch alone. It costs you $13 per day, five days per week. Say you typically get lunch out every day at work. To illustrate potential cost savings, let’s look at an example. The National Restaurant Association reported that, on average, restaurant menu prices have increased by a whopping 7.6% in the last 12 months alone. With inflation on the rise, restaurant prices are getting higher and higher. And in many areas, restaurant costs can be quite a bit higher - not to mention the costs associated with tipping, delivery and service fees for delivery apps. In other words, restaurant meals cost more than three times as much as their home-cooked counterparts. This compares to an average of closer to $4 for a home-cooked meal. Make more meals at homeĪ typical restaurant meal may cost around $13 or more, on average. And if you do more than one of them at once - or even all of them - they can add up quickly. You can probably think of a few ways of cutting costs at home immediately, but there’s no shortage of small life hacks that can make a big difference. Subtracting from your spending is another strategy for saving money - and it’s something almost anyone can do. You can even sell some personal items to put extra cash in your pocket.īut the addition equation isn’t an option for everyone. ![]() You can ask for a raise, find other employment opportunities or seek out a side hustle. But sometimes it helps to think of it like an equation.Īdding to your income is one way to save. ![]()
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