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.
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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.
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!
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.
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!
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!