5 Small Changes to Save Over $9k A Year
If you search the online for money saving tips, there are no shortages of articles with writers providing their insights – with some being more practical than others. The key to saving money is to commit to a plan and the clearer the plan the better. Highlighting the outcome or savings you may receive after a set period of time can even be more motivating.
Below is a list of simple and very practical things you can do tomorrow to save big money through the course of a year. Below are 5 examples of things you can do to save over $9,000 in a year. This figure can actually be much larger if you add a few other items to the list.
Quick wins to save BIG cash and get healthier too
Coffee: There are many people who have at least 1 coffee a day and some that even have 2 to 3 or more. This can add up to over $2000 a year if you drink 2 cups a day at $3 a pop. There are big savings to be had by quitting or reducing the amount you purchase each day. If you must have coffee, try brewing it at home instead of purchasing it by the cup from coffee shops.
Hair: This can really differ for men and women. If you are a male and spend around $20 a month for a haircut, this equates to $240 a year not counting tips. Try purchasing a nice set of clippers and cutting your own. For women, it might be more about reducing the frequency and/or downsizing the services while maintaining the quality.
Lunch: This is a great time to be social and go out with friends and colleagues; it’s also a great way to say big money. If you are spending around $15 for lunch each day, that is roughly $3900 a year. Try bringing your lunch to save big or at least reduce the frequency of eating out each week.
Alcohol: If you were to average around $50 a week in alcohol purchase, that’s roughly $2600 a year. However, let’s be honest, some people drink way more than $50 a week in drinks. There can be huge savings here. Try reducing the frequency of drinks and/or drink at social events like parties or BBQs versus pubs, bars and clubs.
Soda/Bottled Water: On average these types of drinks are around $3 a pop. If you were to purchase one or the other at least 4 times a week, that would come out to $624 a year. Similar to the other examples, reducing frequency or cutting this out altogether can save you loads of cash.
Below is a summary on how much you could save if you went to the extreme of the above and cut all of these things out.
Doing all the above in one go isn't practical for most people but by looking at the chart you can see what you might be able to save if you cut out 1 or 2 of these.
What other things could you cut out which would provide you with a surplus of cash? cigarettes? junk food? snacks? memberships?
By cutting out low cost items that are purchased with frequency you can establish amazing savings over time. This is money that can be used to pay down debt, establish a savings or an emergency fund and if you have already done these things; Start investing and grow your wealth.