Realistic Ways to Cut Down on Your Expenses
One area of personal finance that I think is frequently neglected are the benefits that can be derived from cutting out and/or minimizing expenses. I feel like a lot of people are primarily focused on how to increase their income and don’t pay enough attention to the other side of the equation. As such I have put together a list of ways that the average person can cut down on their expenses:
1. Take a 10 minute shower rather than a 15 minute shower. Assuming the average showerhead sprays 2.5 gallons of water a minute you are going to be paying 57 cents a day for water and energy if you take a 10 minute shower. This translates into $208 a year.
On the other hand if you were to take a 15 minute shower your daily cost would increase to 85 cents. This translates into $310. By shaving 5 minutes off your shower time you will be saving yourself $102 over the duration of a year. (All numbers compliments of Seattle City Light’s Conservation Resources Division).
2. Brew your own cup of coffee instead of picking up a latte at Starbucks. A tall latte at Starbucks costs about $3, totaling a cost of $1095 a year. If you brew your own cup of coffee at home it will cost you around 50 cents a cup totaling $183. You just saved yourself $912 over the duration of the year.
3. Prepare your own lunch rather than eating out everyday. The cost of lunch if one uses leftovers or average priced groceries is around $4 a day. Costs are therefore around $1460 a year. If you were to go out to lunch and spend around $9 a day for a standard lunch out your annual costs would be $3285. Therefore packing your own lunch will save you around $1825.
4. Cut your own lawn. The average costs for lawn services is $30. Therefore paying someone to cut your lawn once a week will run you $1560. Compare this to fuel costs of about $5-10 ($364 for the year) to fuel your own lawn mower up and you could be saving $1196.
Hopefully some of these ideas are applicable and will provide some serious savings so that you can spend money on things that matter like late night Auggies and beer.
After having interned this summer, I have to say that the 2nd and 3rd points that you made help cut down on daily expenses significantly. However, another important aspect I wanted to point out is the amount of time that you are saving by using these tips. By taking shorter showers, not waiting on line for a Starbucks coffee (the lines take up to 15 min), and not going out to get lunch, you can save up to about 1 hour a day (saving 5-10 shower time, 5-15 minutes coffee waiting time, 15-30 minutes lunch break time) to get some extra sleep.
pierrecarras - September 8, 2008 at 2:14 am |
The total savings associated with just these four different money saving strategies totals around $4,000. In addition to just these four things, there are many other things that can be cut back on to save money, like smoking, eating out, etc. Nonetheless, just imagine what you could do with an extra $4,000 per year. You could pay $20,000 on a down payment for a home, or purchase a brand new car with no financing. This can in turn help you “make your money work for you” and allow you to gain net worth and wealth in the long run.
chadingalls - September 8, 2008 at 2:55 pm |
One think about cutting expenses isnt just about looking where to save a nickle or dime everyday. Its about finding and changing your attitude and outlook on life and finance. Its about adjusting not just small things, but your whole lifestyle. Its like a religious, you have to not just know it, but practice it, live it, love it.
bkriger - September 9, 2008 at 11:50 pm |
These are all great but lets face it most of us aren’t paying attention to how much water we use right now or even cutting our own lawns. The main things we can cut back on are coffee, eating out, and buying food. If we are smart about how we buy things then we can have that extra spending money we all would love to have.
tessamacdougall - September 10, 2008 at 4:20 pm |
I know recently with gas prices the way they have been all summer landscaping and lawn service has become quite expensive. Prices have definately risen, which is obvious since every piece of equipment used by a lawn service is run on gasoline. I think getting out there and mowing you’re own lawn is a great idea for someone looking to cut cost, and at the same time do something active.
patricksullivan - September 10, 2008 at 8:23 pm |
I definitely agree with the points made in “Realistic Ways to Cut Down On Your Expenses.” With the current downturn in the economy, I have thought a lot about my personal finances and how I should adjust my spending. I interned this summer in New York City and unfortunately did so without a salary. Although I suffered a huge monetary loss in working and receiving no paycheck, I alternatively was very cautious with my money. While it was hard to not eat out lunch everyday (because that was the trend of many employees with whom I worked), I would bring breakfast from home to work everyday and eat dinner in my apartment most nights. With rising gas prices, the recession that may be coming and inflation within the United States, I think this is a very important period in time for all individuals to truly consider their daily activities and lifestyle choices, and think, is this all really necessary?
joshgoodman3 - September 10, 2008 at 11:57 pm |
One major way to cut down on utility expenses is to consciously turn lights out when you leave a room. It may sound obvious, but many people do not realize when they leave their lights on. Also, appliances that have powersave lights on them including your computer, stereo, cable box etc. can drain your utility bill. Consider unplugging these appliances when you are not using them.
lizhealey - September 11, 2008 at 2:17 am |
Using discount coupons can help you save. When you see discount coupons for products you buy on newpapers, on magazines, or in mail box, cut out the coupons and keep it in a box. When you go out for shopping, remeber to bring along the coupons for products you plan to buy.
lanlanliang - September 14, 2008 at 10:58 pm |
I think that you make a good point that people, in general, are too concerned with how to increase their income, and not nearly concerned enough with how they can avoid unnecessary spending. Personally, I think I spend a large portion of my money on impulse buys that I really don’t need. These tips make me realize that if I become slightly more self-sufficient (make my own lunch, drink my own coffee, etc), my savings will add up over a term of months or years to a very significant number. Then, instead of blowing money on unnecessary expenses, I could potentially invest and turn my significant savings into an even more significant profit.
scottcraft - September 23, 2008 at 4:34 pm |