Cutting these expenses could free up some serious cash.
There are plenty of reasons why saving money is no easy feat. For one thing, life is expensive. It costs a lot to put a roof over your head, and letâs not even get started on the exorbitant price of healthcare. Throw in the fact that many people are grappling to pay back outstanding debt, whether from student loans or another source, and itâs no wonder so many of us feel like weâre just not wired to save.Â
On the other hand, if you really stop to take a close look at your finances, youâll probably find that some of your expenses are optional rather than obligatory. And those are the ones you should focus on reducing, or even eliminating, if your savings account needs a serious boost. Here are a few to focus on.
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1. Takeout meals
Takeout meals may be convenient, and even tasty, but itâs hard to argue that theyâre an absolute necessity. Sure, you need to eat, but that can be achieved by preparing meals in your own kitchen for a fraction of what a restaurant will charge you. Imagine you spend $60 a week on takeout. Chances are, you can make similar meals for a mere $15 at home. Cutting out that habit would therefore save you $2,340 in the course of a year.Â
2. Store-bought coffee
It may be the case that your local coffee shop brews a tastier, more potent latte than you can whip up at home. But if that latte costs you $5 a pop and you buy one every day, thatâs $1,825 a year youâre spending on caffeine. When you consider that you can easily make a cup of coffee at home for $0.50, you stand to save $1,642.50 a year by going that route.Â
3. Rideshares
Rideshares make transportation easier -- thereâs no question about it. But if you hail one every time youâre feeling tired or lazy, your savings efforts could take a giant hit. If youâre currently spending $20 a week on rideshares and you opt for public transportation instead at 20% of the cost, youâll save $16 a week, or $832 a year.Â
4. A gym membership
Staying in shape is important, but you donât need a paid gym membership to achieve that goal. Walking and running are free, and if you already own a bike, using it wonât cost you money, either. If youâre not a runner, or arenât a fan of outdoor fitness in the cold, search online for workouts you can do in your living room -- there are plenty of them. If youâre currently spending $50 a month for gym privileges, canceling that membership will put a cool $600 back in your pocket each year.Â
5. Cable TV
Cable TV may be a nice thing to have, but how much do you actually use it? If you work long hours and tend to spend most of your free time socializing, you probably don't need access to 147 different channels. And if you're currently spending $150 a month on cable, which is in line with the national average, swapping that bill for a couple of streaming services could easily free up $120 a month. That's $1,440 a year in savings.Â
The more unnecessary expenses you keep paying for, the harder it will be to build savings. Take a look at your budget, or create one if you donât have one already, and think about the things you can actually live without. And then imagine what you stand to gain by slashing those costs and banking the difference.Â
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
