A subscription fee here and an impulse buy at the grocery store there may not seem like big purchases, but even small expenses add up. And over time, those can weigh on your savings.
While some expenses are necessary, others have more affordable alternatives that offer similar value.
Everyday costs you can cut today
Here are nine everyday costs you may be able to easily eliminate.
1. Unused streaming services
Subscription and services fees can be easy to forget, since they often pull from your bank account automatically. Check your credit card statement to see which services showed up last month and consider which ones you can cut without missing. Getting rid of streaming accounts that you aren’t using, for example, can save you hundreds of dollars each year.
2. Food delivery fees
Takeout via delivery apps like DoorDash can save you time — but they’re probably not saving you money. Review your spending to see how much you’re paying food delivery platforms each month and see if you can cut down, like from three or four meals to one or two. And don’t forget to check your credit card rewards to see if a premium subscription for a delivery app is included, since those often result in lower delivery fees.
3. Expensive cell phone plans
Once you have a cell phone plan that works, it can be tempting to stick with it. However, you should check to see if there are more affordable cell phone plans available. Compare companies to see which lower-cost plans have the offerings you need.
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4. Bottled water and coffee shop runs
The convenience tax refers to things that people pay for for the sake of convenience, and buying bottled water or drinks from a coffee shop just because you don’t want to filter your water or make coffee at home are a good example. Compare how much you’re spending on bottled water and coffee out to the cost of a water filtration system or coffee machine that you can keep at home.
5. Gas at full price
Gas can take a big bite out of your budget, especially if you drive regularly. But there are ways to trim your gas bill. Apps like GasBuddy can help you find the cheapest stations near you, and loyalty programs and credit cards with gas-related rewards can also result in savings.
6. Impulse items in the check-out line
Check-out lines are usually full of low-priced items that you don’t really need, but that can attract plenty of customers. Before reaching for items in the check-out line, consider whether purchasing it will actually make your day better. You can tell yourself that if you decide in 10 minutes you still want the item, you can always return to the store. That barrier is often enough to make us realize we don’t need to make the purchase.
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7. Out-of-network ATM fees
Having at least a small amount of cash on you can allow you to be less reliant on ATMs and any of the out-of-network fees that come with them. When opening a new bank account, do some research to make sure that the ATM network includes machines where you live or often travel to.
8. Annual credit card fees
To be clear, some annual credit card fees are worth the money, especially if you take advantage of the rewards programs. But if you aren’t using enough of the card’s perks to make up for the cost of the card, you may want to downgrade. The annual fee adds up over time, especially if you signed up for multiple credit cards that have annual fees.
9. Bank overdraft fees
While many banks have eliminated overdraft fees — which are a fee you have to pay when you spend more money than you have in your account — policies still vary from one bank to another. You can mitigate the risk of having to pay this fee by keeping a cash cushion in your checking account and choosing banks that have overdraft fee protection.
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How to start cutting costs
You don’t have to cut all these costs in one day. Making incremental changes every few weeks or months can make a difference for your budget without stress.
Start by reviewing your bank statement and cancel one or two items, such as subscriptions that you never use. Then, you can switch one service, such as your cell phone plan, if you find a cheaper option. Ideally you’ll start feeling enough progress to encourage you to continue cutting costs.
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