With all this talk of cuts to the economic stimulus package, I started to wonder if there were any other ways I could cut my personal spending 10% (which is about how much they cut from the package.) So here are 50 simple, not-so-simple, and sometimes silly ways to cut spending by 10%. This assumes an income of $50,000 a year, so a cut of $5,000.
- Quit Smoking. Boom, you just saved $1,800 a year (assuming a pack a day habit.)
- Write down everything you spend to curb your urge to waste money.
- Only use your own bank’s ATMs.
- Sign up for direct deposit. Save $5-10 a month on account fees.
- Pay off debt. Not paying interest can save thousands.
- Use free online bill payment if your bank offers it.
- Drink less. Don’t give it up, but drink at home instead of at a bar. Switch to cheaper wines. You can find great stuff for less than $8 a bottle (the equivalent of one bar drink.) Save $600 a year.
- Brew your own coffee. Save $1000 a year over Starbucks.
- Bake your own muffins/bread for breakfast. Save at least $500 a year over fast food or Starbucks.
- Start using grocery coupons.
- Cook at home rather than ordering out at least once a week. Save $500 a year.
- Make dinner from scratch. Raw ingredients are usually cheaper than boxed food, unless you have a great coupon and sale combination
- Take your lunch to work. Save $1300 a year.
- Make homemade freezer meals for those days you know you’ll be tempted to order out.
- Keep the freezer full. Place half-filled water jugs inside when you run low on food. The more frozen stuff it contains, the less energy it requires to stay cool.
- Plan menus to avoid letting food go to waste.
- Make your own baby food.
- Switch to cloth napkins and dish cloths.
- Practice CVSing to save on personal care items.
- Host potluck dinner parties instead of going out to eat.
- Go out once a month instead of once a week.
- Borrow books and DVDs from the library.
- Return borrowed books and DVDs on time.
- Cancel the newspaper and check the mailbox for the coupon inserts instead.
- Put yourself on a music download budget.
- Drive less.
- Get rid of your car – switch to mass transit.
- Get a roommate.
- Cancel your landline phone (if you don’t live in a potential disaster zone or need a landline for safety reasons.)
- Buy a cheap cell phone/phone plan. No text messages, no internet access or email, no Bluetooth.
- Use the ringtones your phone came with.
- Cancel Premium Channels or DVD subscriptions. Save up to $480 a year.
- Cancel cable. Get a converter box or download shows from network websites.
- Buy clothes that don’t need to be dry-cleaned.
- Go deep in the closet to find old clothes. If they still fit and are remotely fashionable, update them with a simple belt or accessories. Note: the belly shirt you wore to spring break ten years ago cannot be rescued.
- Turn down the heat/AC.
- Buy a thermostat with a timer. Avoid heating the house while you’re asleep or at work.
- Go bigger and turn them off – use a fan and a blanket instead.
- Weatherize your home.
- Unplug unused electronics, phone chargers, etc.
- Turn the power strip off when appliances aren’t in use.
- Turn off the lights when you leave the room.
- Get rid of the garage refrigerator. Save $280 a year.
- Don’t leave your computer on overnight. Save $150 a year while you sleep!
- Cancel your gym membership. If you don’t use it at least 15 times a month, there are cheaper options out there.
- Cancel most automatic subscriptions. You may not even realize what you’re paying for. Scour your credit-card bills for anything that can be cancelled.
- Lose weight. Plus-sized clothes cost more because they require more fabric.
- Buy fewer gifts.
- If you don’t already plan to buy enough to qualify for free shipping, wait or pay the shipping fee rather than buy extra stuff you don’t need.
- Ditch expensive friends. If you can’t hang out without spending money, maybe your friendship isn’t that strong. It’s a hardcore step, but sometimes it must be done.
Got more ideas? Post them in the comments.
