Living affordably doesn’t mean being cheap and saving all your money – it just means being intentional about how you spend it. By avoiding some costs, frugal individuals don’t just save a little bit every few months or so – they’re freeing up thousands of dollars a year without ever feeling like they’re missing out.
My experience has been that many little sacrifices add up in the long run — it’s about spending according to your values, not out of habit. These are 11 expenses smart people cut to save over $5,000 a year — and not feel bad about it. Each of these adjustments might seem tiny, but taken together they mean the world.
Featured Image Credit: Pavel Danilyuk /Pexels.com.
Daily Coffee Runs
A coffee on your way to work is a small-time pleasure, but that number adds up. The $5 cup of coffee every weekday runs you about $1,300 per year – without the weekend treat. The thrifty roast their coffee in their kitchen, trying out various beans and methods of brewing so it tastes as good as the one they order from the café. This saves them not only a lot of money, but also allows them to manage their quality and flavor — so both the pocket and taste buds get a win.
Frequent Dining Out
There’s a convenience when you order takeout or eat out, but it all adds up in a hurry. A $20 meal, a couple times a week, is hundreds of dollars a month. Smart people often shop for food and cook it at home, and save as much as $5,000 per year by not eating out unless there’s a special occasion. This way, you can experiment with new recipes at home – it’s so satisfying and also so cheap.
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Premium Cable Packages
Prices for cable subscriptions can reach $100 per month or more if you have premium channels. The penny pinchers cut the cord and buy streaming services at a fraction of the cost. When they drop cable, they save more than $1,200 a year and have unlimited content.
Brand-Name Groceries
Only purchasing name-brand items can quickly skyrocket your grocery bill. Revert to store brands or generics, which may also be as good as brand-name alternatives. This one little change will save hundreds of dollars per year when it comes to pantry staples like pasta, cereal and canned goods. Those who are smart enough to look at value and quality – instead of labels – know that they are receiving more for less.
New Gadgets and Electronics
Updating yourself with the latest gadgets costs a lot — every year, new models arrive. The thrifty ones don’t upgrade often; they don’t replace devices until they really need to. They are saving hundreds – if not thousands – of dollars per year by not impulse purchasing the latest phone or laptop or watch or TV.
Unused Gym Memberships
Gym memberships are expensive if you aren’t going regularly. The thrifty ones never join the gym and don’t go. From home workouts to jogging in the park to taking up free online exercise programs – you can save hundreds of dollars a year by skipping the gym membership.
Expensive Cell Phone Plans
Premium cell phone plans with unlimited data can run you over $100 a month. Cheapskates know that they don’t need the best plan, and find plans that are less expensive for their usage. By switching to prepaid or pay-as-you-go, they save hundreds each year without compromising service. Using free wifi and home internet whenever possible also helps. It’s an extra little tweak that can compound over the year, freeing up money for other things.
Impulse Purchases
Little impulse buys might give temporary joy – but they add up. Budgeters will regularly give themselves a waiting period for purchases – so that they have enough time to assess whether they really need something.It keeps them in control of their money and be deliberate with spending.
Overpriced Insurance Premiums
Premiums vary widely between companies, and customers frequently stick with the same company simply out of habit. Budget-minded people take the time to compare, solicit discounts and shop around with their insurers. By comparing quotes from time to time, they can often lower rates and save hundreds each year on auto, home or health insurance.
Subscription Services They Don’t Use
Monthly subscription services — such as streaming, magazines, or meal kits — are convenient but costly. Frugal people take regular inventory of their subscriptions and retain only what they really need and love. They’re making savings that otherwise might not have been visible as they get rid of useless subscriptions.
Interest on Credit Card Debt
To keep a credit card balance, you are charged interest, which is typically upwards of 20%. Cost-conscious individuals aim to clear their debt each month to save interest — keeping cash in their pockets instead of giving it to the credit card company. That alone can save thousands of dollars in interest each year, allowing them to stay in control of their money and attain their savings goal faster.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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