Chances are, most people would agree that today’s economy is presenting consumers with challenges and pressures they’ve never felt before. Inflation has far outpaced earning, and fewer and fewer consumers have sufficient funds for covering a medical emergency, car repair, and the like.
With that in mind, it’s more vital than ever that individuals implement various money saving rules. These rules will ensure consumers are not spending needlessly and are more able to meet everyday expenses.
As you go through this information, remember that everyone’s situation is different. A cost-cutting plan that works for one family won’t work for another! Also, it’s understandable that no one wants to cut spending so severely that they no longer have any enjoyment in life, so ensure you cultivate a balanced attitude when it comes to money management overall.
Start With Entertainment Spending
According to a report by RSS podcasting services, Americans spend a whopping $8,258 annually on entertainment!1 This includes over $3000 per year on digital entertainment and $3000 per year on in-person activities, such as social outings and live entertainment.
Cutting back on your entertainment spending is the first and most obvious step when it comes to saving money. As said, you don’t need to remove entertainment spending from your life entirely.
However, now might be a good time to rethink your streaming services, hobbies, and the like. Every $40 you spend on a streaming service that you don’t use very often is $40 you could use toward gas or groceries!
Putting that $40 in a savings account also means $480 at the end of the year. That might not sound like much, but it’s certainly better than putting that money in the pockets of Netflix or Disney executives.
In addition to rethinking streaming subscriptions, make note of how much you might spend on:
- dining out
- reading for entertainment
- sports including dues and equipment
- video games
Cutting back even a small amount in all these areas can add up to noticeable savings every year.
Proactively Check for Cheaper Insurance and Phone Rates
Consumers often forget that they can proactively contact their car and homeowner’s/renter’s insurance carrier, and their mobile phone provider, and ask for a cheaper rate. Too often they assume that rates are locked in and there are no alternatives.
Not only do many insurance carriers offer lower rates to longstanding customers who proactively ask, but car insurance companies often have discounts you might be missing. These include discounts according to age, if you work from home and don’t commute, safe driver discounts, and the like.
It’s also good to check other companies for lower rates on a regular basis. You might find that other insurance companies are far cheaper than yours while still offering the same coverage. Lastly, ensure you’re not paying for services or coverage you don’t need, such as flood insurance for your vehicle if you live in an area with little risk of flooding.
Second Guess Subscription Services
The last and most important rule consumers should be swearing by today is to second guess subscription services! It seems that just about everything today is access via subscription, which means this cost can add up.
According to NextGen Personal Finance:2
The average consumer spends $219 per month on subscription services, yet think they only spend $86.
While you might choose to keep a few subscriptions for gaming, streaming, and the like, strongly reconsider:
- newsletters
- computer programs
- premium access to online sites (i.e., Canva, Twitter)
No doubt many consumers would benefit by reviewing their personal finances as soon as possible, and noting how much they spend on entertainment and unnecessary subscriptions, and if they can find cheaper insurance and utility options. Cost savings in these areas can mean hundreds of dollars in your pocket every month, which translates to saving thousands every year!
- https://rss.com/blog/entertainment-spending/ ↩︎
- https://www.ngpf.org/blog/question-of-the-day/question-of-the-day-how-much-does-the-average-consumer-spend-per-month-on-subscription-services/ ↩︎
Inna Ellison is a freelance writer from Tampa, Florida, specializing in SEO content and blogs for contractors, construction companies, and more. Inna is proud to create all her material individually, without AI and other digital help.
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