8 Steps to Save $9,274 this Year

January 1, 2018

Have you ever had the paralyzing fear that you couldn’t make ends meet? The realization that you were drowning in debt? The wish that you had financial freedom?

Tired of living life this way?

Me too. The moment I realized things needed to change was the moment I took a good hard look at our family finances. Everything that we spent money on was fair game.

This may sound a little harsh, but if you really want to change your life, it’s time to cut the crap, ditch the frills, and get down to business. Take a look at what you spend money on in a normal day, month, and year. Now dump, ditch, skip, and cut out everything you possibly can. Trust me, it sounds way worse than it really is. And honestly, it becomes a lifestyle and a fun mission once you start.

Ready to save $9,274 this year?

Dump the coffee and save $1,100

The best option is to cut the $3 per day morning coffee altogether and drink water. You know, the clear stuff that comes out of the tap and costs close to nothing. This is both healthiest and cheapest. Can’t cut it altogether? Do the next best thing and brew your own – one pot or pod at a time. Starbucks k-cup pods can be found on Amazon for about $0.50 each. Better yet? Wait till you get to work and drink your employer’s coffee.

Can’t skip the Starbucks or gas station cappuccino? Rethink your commitment to getting out of debt, obtaining financial freedom, and spending time soaking up the sun on a beach.

Cut the cable and save $1,236

Cut the cable altogether and find other ways to entertain yourself. With the average cable bill at a whopping $103 per month, the value just isn’t there. Read a book, hang out with your friends, spend time with your family, or find something productive to do like blogging, working a side-hustle, or selling items on Facebook. The options are limitless, and without TV, you’ll find yourself with a whole lot more time on your hands.

Can’t cut out TV or movies altogether? Do the next best thing and subscribe to Hulu or Netflix (about $8 per month each for the base plan).

Wait to upgrade your phone and save $600

You need a new phone or the newest iPhone every year about as bad as you need a gold toilet in your bathroom. Unless your phone is no longer functioning or damaged beyond repair, wait as long as you can between upgrades. An installment or financing plan is just one more way to sucker people into the newest and greatest with a $50 monthly payment. This is still debt folks and you’ll end up paying more for your phone in the long run.

Actually need (not want) a new phone? Pay the full amount up-front and skip the installments to cut some cost.

Skip the AC in the summer and save $512

Disclaimer – if you have health issues that make this an unwise decision, don’t do it. Now, this may seem hardcore to forego AC, but this one says commitment like no other. Living in the Midwest where summers are a sultry 100 degrees at 95 percent humidity suck with no AC, but we did it for three years straight with the assistance of fans and open windows at night. I consider mid-May through mid-September to be our summer.

Not running your central air unit will save you $129 per month. Instead, switch on your ceiling fan which costs about 1 cent per 3 hours of use for a whopping $1.20 per month.

Can’t skip the AC? Try using a window AC unit that costs about $50 per month; even less if you use it just while you sleep. Actual expenses and cost savings may be more or less for your specific location.

Keep the thermostat down in the winter and save $450

Living in the Midwest where winters are a frigid fifteen degrees below zero. Yes, that’s right, that is the actual temperature outside as I write this. The high today is negative nine and the low for tonight is negative nineteen. I refuse to let the thermostat above 69 degrees. I wish I could go lower, but I’m always freezing, so I have a little bit more commitment to give.

Every degree set back (or ahead) from your present heating level makes about a 3 percent difference in your annual heating bill. So, a 10-degree setback (from 75 to 65) means a 30 percent savings for the heating season! A 5-degree setback (from 75 to 70) means a 15 percent savings.

These figures are based upon average heating costs of $1,500 in propane for Oct – Mar. Actual expenses and cost savings may be more or less for your area and type of heating.

Opt for the home gym and save $696

Do you pay for a gym membership that you never use? Or to go to the gym to simply run on a treadmill? Try staying home and using your basement or garage gym or running on the streets. Obviously your health is important, and I want you to keep it up, but if you’re like 67% of Americans, your $58 per month membership is costing you extra money because it isn’t being used.

Eat at home and save $2,600

Do you and your family eat out at least 2 nights a week? $25 for a family meal outing is a pretty conservative number to use. That’s $50 per week or $2,600 per year. If you spend more per meal or eat out more than 2 times a week, the cost savings is huge. Eating at home is significantly cheaper and allows you to spend quality time together.

Not ready to go cold turkey? Start with only eating out one meal per week, then one every other week, then once per month.

Bring you lunch to work and save $2,080

Ever heard of packing your lunch? It might not sound sexy or be the “cool” thing to do, but since when does that matter when you’re serious about getting out of debt? Let’s say your lunch costs you $8 by the time you get your food and drink. Five days a week equals $40 per week or $2,080 per year.

No ready to bring your lunch all five days? Start with two, then three, then four. Soup, sandwiches, fresh fruit and salads are all easy, healthy, and cost-effective alternatives to eating out.

Ready to make this your best year yet?

Now here’s the deal. Cutting these costs means that you need to SAVE the money. If you don’t, you will continue to live the life where you’re constantly broke, in-debt, not able to do the things you want, never having financial freedom, and not living life on the beach. You get the point. So cut the costs and save the money starting today!