How to Cut $10,000 From Your Annual Expenses

Save big bucks with these easy ways to trim your spending.

How to Cut $10,000 From Your Annual Expenses

Save big bucks with these easy ways to trim your spending.

The average household spends more than $50,000 a year on everything from clothes to utility bills, according to the government’s Consumer Expenditure Survey, so if you want to slash $10,000 off your annual expenses, you’ll have to cut your spending by 20 percent. Here’s how, according to Stewart Welch III, founder of The Welch Group, a wealth-management firm in Birmingham, Alabama.

Start here, and then discover the story that has changed thousands of lives: the essential 100 Ways to Live Until 100!

Man taking a $100 bill out of his wallet

1
Use cash

Not only will you pay more attention to your spending, but you’ll also soften the blow from outrageous credit-card rates. If you normally charge $10,000 a year at 14.9 percent interest, for example, paying with cash and checks will save you $1,500.

Couple cooking in a kitchen

2
Cook at home

Cutting your restaurant and takeout expenses from $420 to $210 a month will save $2,520 a year. Eliminate your daily $4 latte and $1 water to save an extra $4,345. To make the most of every day, don’t miss this amazing list of the 40 Things You Should Do in Your 40s!

Man Caulking window

3
Plug holes in your house

Sealing gaps and cracks that allow air to escape will help reduce your monthly heating and cooling costs by up to 30 percent, according to the Department of Energy. Installing surge protectors that cut off all electricity to appliances that aren’t in use will save an additional 5 percent. Total annual savings: $1,333.

Person holding cellphone

4
Ditch your landline

You likely use your cell phone for most calls anyway. Canceling your landline can save $500.
That’ll let you put aside some funds to enjoy these incredible 50 Things You Must Do Before You Die!

Carpool Lane Sign

5
Carpool

If you commute more than 15 miles a day and spend, say, $10 on parking, forming a three-way carpool can save up to $2,000 a year. Go to Vride, Uber Pool or Lyft Line to get started.

Money saving jars with different labels

6
Spend less

A group of San Francisco professionals known as “the compact” made headlines a few years ago by vowing not to buy anything new for a year. Even partially following their lead — say, by cutting clothing and entertainment expenses in half — can save up to $2,400 a year. Instead of indulging in retail therapy, turbocharge your happiness with these 25 Ways to Be Happier Now!