5 Ways To Trim the Fat
If you are looking for a post on how to lose weight, unless you are talking about the weight on your shoulders because of the debt you are holding, this is not the post for you.
In my coaching experiences, people have a hard time trying to find ways to cut back on their spending. Below are 5 simple ways to trim a little off the budget.
1. Plan ahead when it comes to food. (Savings: ~$40/mo - $480/yr )
You know you are going to go out and shop. You leave your house at 1000 am and have a list as long as a CVS receipt of things to do while you are out. Good for you for trip linking. However, you didn't pack a single thing to eat for during that time frame. Instead of spending 10 minutes at home making a sandwich and packing some snacks (total cost less than $10), you go out to lunch and spend $20 instead. Do this 4 times in a month, and you have wasted $40 dollars.
2. Use cash instead of swiping the card. (Savings: ~$100 - $1200/yr)
Spending cash makes you feel the purchase you are making. When you open your wallet and there is little or no more green in there, it makes you think twice about the purchase you are about to make. If you out and spend $1000 in a month, and even 10% of the time, because you used cash, you stopped a purchase, then you are ahead of the game.
3. Change the Channel. (Savings: ~$117/mo - $1154/yr)
The average basic cable/satellite plan for TV is $107 a month. That is for basic TV. The average American adult (according to a Nielsen Report) spends about 5 hours per day watching TV. Add in the $10 per month in electricity spent to keep the TV on, and you have spent $117 a month. For about $130 dollars, you can get an Ultra4K over the air HD antenna that will allow you to watch TV for FREE! That could add up to over $1100 in savings in a year. Yes, you still have to pay the power bill, but not
4. Don't be scared away by generic or store brand products. (Savings: ~$200/mo - $2400/yr)
On average, the generic or store brand products cost anywhere from 30-50% less than name brand products. However, in a blind taste test, frequently the store brand products could not be identified from the name brand products. If you spend, on average $500 a month on food, and switch to the generic or store brands, you could save $200 a month or more.
5. Learn to say "NO". (Savings: ~$100/mo - $1200/yr)
If you have the average household income of $5000, and you can say "NO" even 2% of the time to keep from spending those extra dollars, then you are money ahead. You don't that extra shot in your already overpriced coffee. You don't need to upsize the drive thru trip you shouldn't be on in the first place. Simply sticking to the necessities can make a huge difference.
Without even trying, I have eliminated $517 a month off your spending with these few basic tips. All of these changes are not difficult. They are just based on using our head and thinking about the choices we are making.
When people tell me they can't afford a financial coach, I ask them that if I can find the money in their budget for it, will they hire me. I give them some of these exact options in their budget, and my appointment book.
So ask yourself this....can you afford to continue to throw away $6,200 a year? If so, feel free to throw it away into my bank account. I will be sure to put it to good use.