Discover 12 Expenses That Can Destroy Your Budget

Free Up Some Extra Cash By Tackling Your Budget

Lots of people are just barely getting by with just enough money in the bank to pay their bills. Everyone has to eat and that means shopping at the grocery store and other expenses like having a cell phone are necessary. But there’s a real good chance that you’re paying more than you need to for necessities and especially luxuries that you likely can’t live without. Here are some great tips on how to reduce expenses that are unnecessary which will, in turn, give you some extra cash in your budget.

1. Car Insurance

Here is an area that is pretty easy to save some big money. By shopping around first you can get a good idea about the money you can save before you go to speak to an actual agent. This will require that you shop each year to find the best rates.

2. Cable

In America, the average person spends about $80 a month on cable. Most of those people have internet and that really makes the cable unnecessary. The average person watches certain channels and shows and this means that getting a full package offered by cable usually isn’t the best deal. Because of YouTube, Netflix, and Hulu, your TV needs can be fully satisfied while significantly reducing how much you’re paying.

3. Cell Phone

You want to make sure that you don’t allow the salesperson to pressure you into getting an unnecessary and expensive contract. Most of the carriers do have lower-cost plans that can be signed up for without any type of long-term contracts. Virgin Mobile, as an example, has a plan that starts at only $35 a month and it is comparable to the T-Mobile’s plan that cost $120. And that one example alone it would represent almost $100 per month savings.

4. Energy Bills

An excessive heating bill can quickly take any extra money you have. As a rule, reducing the temperature you’re heating your room or apartment to, by one degree, will lower the bill by 3%. This means that if you lower it as little as 3 degrees you could be saving almost 10% off of every bill. You might also want to consider going solar.

5. Transportation

An often overlooked opportunity to save money is to take public transportation at least some of the time to save on gas and other auto expenses. With eco-friendly and cost-saving options such as trains, buses, and subways there’s really not as much need to be making a big car payment and having to pay the insurance that goes along with it every month. This can save the average person a considerable amount of money every month.

6. Dining Out

In most cases eating out cost more than cooking your meals at home. There are a number of easy to fix meals that you can learn to prepare. For this reason, you should try to avoid the temptation to run over to your local fast food restaurant to grab a quick bite to eat. When you do fix a meal cook more than enough and that way you can freeze the leftovers and eat them another day.

7. Gym Membership

On average this type of membership will run you $40 or $50 a month and that adds up to several hundred dollars a year. But you can actually work out without paying anything at all. There are fitness classes that are available at YMCAs and with certain corporate programs. You could even get a DVD and follow along with it on your own. There’s also the option of simply going for a walk or run outside.

8. Groceries

Most families will spend anywhere from $500 to $1,100 a month on food according to some government statistics. For families, it’s often more cost-effective to join a warehouse club and buy your items in bulk. The only thing you want to make sure of is that you’re not over buying fresh vegetables. You need to have an idea of how long it will take you to eat the food and whether or not it can last that long. Buying in bulk is a good deal as long as you buy it in amounts that won’t expire before you can eat it.

9. The Daily Latte

You may feel that your $4 latte is a must but if you could do without it, it would help your budget significantly. You could try getting a French press or your own machine to save money on your morning brew and drink it at home. Upfront it’ll be a bit more expensive but it’ll soon pay for itself in savings.

10. Medications

Prescription drugs are usually must-have items but buying brand-name drugs isn’t necessary. The generics are considered to be in every way equivalent to the brand name drugs but you can save up to 85% off the price. You can use apps like GoodRx or Lowest MD to help you save on drug prices. You might also want to sign up for a discount card that often gives 10 or 20% off the price.

11. Entertainment

You can easily spend over $35 on a single night out at the movies just for the tickets along with the popcorn and drinks. But some of these theaters offer loyalty cards that give you discounts for both the tickets and the concessions. Regal Entertainment offers a special on Tuesdays for club members that give them $2 off of their popcorn. Other theaters offer kids specials and package deals on snacks. You might even find there’s an offering for a free movie screening at some libraries and museums.

12. Shopping

Regardless of whether you’re doing your shopping at a mom-and-pop shop or at a big chain store, it’s sometimes possible to not pay full price. If you fall into a certain age group or you’re a member of some associations, then you might be entitled to a discount. Students, as well as veterans, are also sometimes included among those who can get special discounts. If you want to know if the store offers anything like that all you need to do is ask.