One of my top financial resolutions every year is to reduce (or better yet eliminate) an expense. Reducing expenses is a great way to increase savings and/or accelerate the pay down of debt and everyone is capable of doing it. Making small changes like bringing lunch to work, brewing your own coffee in the morning, or foregoing a gym membership to run outside instead, are all easy things that can add up to real savings. So far this year I have been successful in reducing the 3 expenses below that have improved my monthly cash flow.
- I cancelled my gym membership at 24 Hour Fitness which I was paying $45.00/month and signed up for Planet Fitness for $13.25/month ($10.00/month + $39.00 annual fee).
- I renegotiated my AT&T cell phone bill down from $135.00/month to $105.00/month.
- I shopped homeowner’s insurance rates and adjusted my coverage with Travelers which lowered my bill from $30.83/month to $21.92/month.
I was able to reduce my monthly expenses by $70.67, saving $848.00 annualized!
I’ve prepaid my annual auto insurance (saved 10% by pre-paying) through October, but plan to shop rates once my renewal comes up to try to save even more. I also plan on cutting the cord on cable soon, which will save me money on my cable bill.
What are your financial resolutions? Have you been successful in reducing any of your expenses this year?