When paring down a budget, some might think that means eliminating anything fun — especially when there’s debt to pay off. Entrepreneur and author of “I Will Teach You to Be Rich” Ramit Sethi insists that’s not true, even if a consumer has unpaid debt. In a recent video Sethi posted on his Instagram, he said, “I believe in living a rich life today and living a rich life tomorrow, even if you have debt.”
His video went on to detail three ways that consumers can find some wiggle room in their budgets. These are things that Sethi said most people “won’t even miss.” Read on to find out how to find these hidden savings.
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Cancel Unwanted Subscriptions
Sethi’s first suggestion was for people to look at their subscriptions and see if there are any they wouldn’t mind canceling — or didn’t even remember they were subscribed to.
According to a recent statistic from Self, around 85% of people have at least one paid subscription that they don’t use every month. This comes out to about $32 a month, or almost $400 a year. This could be a tremendous savings that consumers can net without changing their routine at all.
Check bank and credit card statements for recurring charges during an entire month to see every subscription, then determine if there are any that can get the boot.
See More: 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses
Switch Insurance Carriers
Sethi recommended that individuals call their insurance companies (car, renters’, pet, etc.) and say “I’m shopping around for a better rate. What can you do for me?” If the insurance company is unable to offer a better deal, switch carriers.
Most consumers who switched carriers in the past five years had a median savings of $461, according to Consumer Reports. It’s a good idea to look into competitors’ rates about every six months or so to make sure you have the lowest price.
Monitor Impulse Purchases
Impulse spending can be anything from a DoorDash order or a cute shirt in the mall. Americans spend about $150 in impulse purchases every month, per a post from Ramsey Solutions. Keeping those to a minimum can save consumers more than $1,000 a year.
These types of purchases are typically fueled by emotions. Maybe shoppers will splurge on a cookie during a bad day, or buy a magazine in a checkout line because the cashier is taking a long time. It’s important to determine the reason behind these purchases and see if there are other ways to solve that problem. Finding free or cheaper ways to fill time or cheer someone up is key to spending less on impulse.
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This article originally appeared on GOBankingRates.com: How To Save Hundreds per Month With 3 Steps, According To Ramit Sethi
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