According to recent statistics, over 50% of Americans live beyond their means. Nearly 60% say that they aren’t putting savings away or planning for their retirement years. These numbers are startling considering that the United States is considered one of the wealthiest countries on the planet.
In many cases, the reason for people’s financial struggles comes down to simple money management. By reducing the amount of money you put out each month, the more you’ll have left over in your pocket. If you’re looking for ways to reduce your monthly costs then here are some of the most effective ways to get started right away.
Get Rid of Your Subscriptions and Memberships
The average person is subscribed to two or more services. Between the gym, streaming services, and magazines, chances are there are at least several automatic payments coming out of your family’s budget each month. In many cases, these subscriptions are hardly used— or worse, not used at all.
You might as well be throwing this money out the window in that case. If you’re looking for ways to cut back your spending immediately, get rid of subscriptions that you could realistically live without. Some people may not even realize how many subscriptions they have until they look at their bank statements. They soon realize that there are potentially hundreds of dollars coming out each month for absolutely nothing. Be honest with yourself and purge any memberships and subscriptions that aren’t necessary.
Stop Eating Out
One of the biggest culprits for squandered money is eating out in restaurants. The average person eats out at a restaurant at least four times a month. Depending on how big your family is, you could find yourself spending over $1000 a month simply on eating out. When you compare the price of food in a restaurant compared to a grocery store, the difference is startling. If you’re looking for ways to curb your spending, then one of the first places to start is eating at home and cutting out restaurants.
Once you get to a more financially stable place you can start reincorporating restaurants into your life. However, until you get out of your financial slump, restaurants should be off-limits.
Pay off Your Credit Cards
Although paying the minimum on your credit cards each month may seem like you’re putting more money in your pocket at the end of each month, the reality is that you’re only digging yourself deeper into a pile of debt.
Paying off your credit cards may momentarily set you back financially, however, the less interest you will build over time. Pay off your credit cards as aggressively as possible and you’ll thank yourself for it later when you no longer have debt looming over your head.