Cut These 5 Expenses Now And Really Watch Your Savings Skyrocket

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expenses to cut savings retirement

Is your savings account looking small these days?

Whether you’re looking to retire early or have money for life emergencies, the key to a strong savings account is keeping the money you earn from working, side hustles, or any passive income streams.

Sit down for this revelation, but the best way to save money is not to spend as much. MoneyTalks News compiled a list of the eleven expenses to consider cutting to keep more of your income in your pocket.

“Many people dream of retiring early. In fact, there’s even a movement these days, called FIRE, that offers the hope of financial independence (“FI”) and the ability to retire early (“RE”) from the grind.

However, it’s important to note that in many cases, FIRE requires a great deal of planning — and sacrifice. You might need to reduce or eliminate some spending to set aside enough money to reach your FIRE goals.”

While all of the recommendations in the article are worth considering, addressing these five problem areas will likely lead to extra money at the end of the month if your willing to listen to the advice.

The 5 Expenses To Cut Now

Here are the five expenses to cut – or drastically reduced – almost immediately that will save more money each month.

Eating out

Read any online article about saving money, and one of the suggestions is always to stop eating out, yet, people continue to eat out with little money in savings.

Spending money in restaurants took a sharp dive in 2020 because of the pandemic, but those numbers will likely rebound now that the country is completely reopened.

Cooking at home is way cheaper than eating out – or ordering take-out – and if you’re really not a great cook, there are meal-order kits that make the process pretty darn simple.

Gas

With gas prices reaching an all-time high, now is the best time to rethink how often you use your car for unimportant reasons.

Taking public transportation, getting rides off friends and family, riding a bike, or just walking are always options, but here’s one idea the article doesn’t offer – don’t go as many places. Often, people will leave the house to leave the house.

This is fine as long as you’re not burning gas to get to wherever you don’t have to be and then possibly spending money once you arrive.

Clothes

According to stats collected from the Bureau of Labor Statistics, the average American spent $1,883 on clothing in 2019.

Unless a job demands you look your best, spending money on high-end clothes doesn’t make much sense. Shopping around for less expensive items like suits and shoes is the best idea and selling the clothes you never wear is a way to pad your savings.

Alcohol

The pandemic again affects spending as Americans shelling out a ton of money on booze last year.

The likely excuses for high spending on alcohol are added stress and bars and restaurants being closed, but if your alcohol bills are still high, you might have both a spending and drinking problem.

One drink at night to unwind is plenty. Having a fridge stocked with enough alcohol to have a party every night isn’t a smart way to budget money.

Cleaning Supplies

Keeping the house clean is important, but there’s no difference between a $6 bottle of counter cleaner and a $2 bottle.

“This category includes laundry detergent, which can be expensive. You might be surprised to learn that you might not need laundry detergent at all on lightly soiled clothes. But if you do need detergent, it’s relatively easy and inexpensive to make.”

As the article points out, in most cases, homemade cleaners work just as well and can be made cheap.

Other Major Drains On Money

The article makes a few other suggestions for cutting costs, like rethinking how – and where – you live. Since a house is typically an individual’s biggest expense, the article suggests finding a roommate or occasionally renting out the house on Airbnb when you’re not around.

This suggestion likely doesn’t work for most people who already have a family living in the home and don’t live in a desirable enough area for steady Airbnb rentals.

The other propositions for saving money include rethinking grocery store purchases and vehicle purchases. Do you really need a brand new car every few years? Does the store brand version of food tastes that much different than the higher-end brands? The answers are no and not really.

Read the entire article for more money-saving ideas and suggestions on expenses to cut in the next few months.

Author
Chris Illuminati

Chris Illuminati is the author of five books and has written about personal finance, wealth, debt management, and entrepreneurship for numerous outlets including Wise Bread, Grow or Die, and Bankrate.

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