Tips to Plug Spending Leaks and Slash Expenses

Look for ways to cut expenses in as many areas of your life possible. Funnel the savings into an emergency fund to cover unexpected expenses such as a car repair or an injury, or to pay down (or pay off) debt with high interest rates.

These tips will help you spend less at home, for your car, and at work. The Plug Spending Leaks Worksheet can help you keep track and build on your success.

Home

• Consider downgrading your cell phone service or eliminating your landline. According to the Bureau of Labor Statistics, the average consumer pays about $600 per year for cell phone use.
• Eliminate cable TV extras (or cable altogether at $30–$80 a month).
• Eliminate satellite radio ($13–$15 a month).
• Cancel non-job-related online accounts and subscriptions.
• Insulate your windows and turn off the lights. A few dollars of energy savings can translate to several hundred dollars a year in overall savings. The U.S. Department of Energy’s Energy Star Home Energy Yardstick is a good place to start.
• Consider selling motorized vehicles you can live without: boats, ATVs, recreational vehicles, an extra car. The savings in maintenance costs and insurance, plus the money you’ll receive from the sale, can be significant.
• Use coupons.
• Shop at discount and consignment stores.

Car

• Raise the deductible on your insurance policies to lower your monthly premiums.
• If you have more than one car, can you get by with a single vehicle? Can you sell one or trade it for vehicle with lower payments? Better yet, can you sell one and use the money to buy a used car that you can afford to pay for in full?
• Group all car trips by geography so you’re driving less—and using less gas.
• Consider taking public transportation.
• Cancel your satellite radio and GPS services.
• Although it seems counterintuitive (you’re trying to cut expenses), keep up with regular, preventative maintenance on your car. Doing so helps your car run efficiently and can help prevent unexpected and costly repairs as your car ages.

Work

• If you’re still employed and healthy, when your company offers open enrollment on health insurance, consider choosing a less expensive option for your health insurance coverage. Evaluate all costs and the pros and cons of different plans. If you have a pre-existing condition or feel you may have a serious illness, discuss the best option with your human relations representative.
• Skip restaurant lunches and pack your lunch—every day. Even eating two lunches out a week costs about $10, and that can add up to $1,000 a year.
• Skip after-work cocktails, or order a soda instead.
• Wear clothes that don’t need to be dry cleaned.
• If you need new clothes, shop consignment or thrift stores.
• Skip the expensive coffee breaks by bringing your own better brew from home. Better yet, take a short walk to clear your head and energize. Savings: $750 a year.