Quick Ways to Cut Costs From Your Budget

A majority of Americans believe a recession will likely happen sometime this year. This uncertainty has people making changes in their financial lives, including saving more and avoiding big purchases. Whether your income has already been impacted or you’re worried that it might be, here are some quick places you can look to cut money out of your budget.

Ways to cut costs from your budget

1. Subscriptions

If you’re like most people, you’re shelling out more than you think in monthly subscriptions. A few dollars here and there may not seem like much. But according to a study by C&R Research, the average person spends $219 a month on subscriptions. And most people vastly underestimated the amount they were actually spending.

While we’re not suggesting that you drop every subscription, there’s probably some low-hanging fruit here. Look for subscriptions that you’re not using frequently and consider dropping them. This is one of the quickest ways that you can slow the amount of money that’s flowing out of your accounts each month.

2. Dinner out

Depending on your situation, you don’t have to stop going out entirely. But this is an area where being more selective can save you big bucks. Instead of going to restaurants three to four times a week, maybe cut back to one.

A little pre-planning can be helpful here, too. It’s always easier when time is an issue to pick something up. But that can add up quickly. Work to better plan your week. Brown-bag your lunches whenever possible. And make sure you have something easy to make at home for those nights when you know you’ll be tempted to stop on the way home.

3. Debt payments

While it’s not a good idea to be constantly opening new credit cards to manage your interest payments, in a pinch it’s also not a bad idea. If you have high-interest debt payments, consider taking advantage of a promotional offer on a new credit card to temporarily reduce what you owe in interest each month. Many cards offer low or even zero-percent introductory rates if you transfer a balance to the new account.

If you do go this route, make sure you understand the terms and what you have to do to qualify for the low rate. Also watch out for balance transfer fees, as these can eat into any potential savings you might get.

4. Gym memberships

Sure, the gym is a great way to stay healthy. But the beauty of physical fitness is that (for the most part) you can stay in shape without fancy equipment or paying for a monthly membership. There are a number of free workout apps available.

5. Energy costs

If you have a lot of devices (and who doesn’t these days?), there’s a chance that you’re spending money on “vampire energy,” as many devices continue to use electricity even when they are “off.” Consider unplugging them when they’re not in use or plugging them into energy-saving advanced power strips. Common energy vampires include smart TVs, video game consoles, laptops and coffee makers—basically anything that stays in a standby mode or can be turned on with a remote.

Also, if your local utility offers time-of-use rates, in which you pay a lower rate for using electricity during off-peak hours, consider opting in and doing certain high-energy chores during the cheaper time period. That can include things like doing laundry, running your dishwasher or even charging all your devices.