Americans plan to cut these 4 big expenses to increase their savings
Want to save more money? Here are four expenses your fellow Americans are cutting back to increase their savings.
Finding money to save can be difficult, but it’s important if you want to meet your financial goals and avoid going into debt for big purchases or emergencies.
If you don’t know where to start when it comes to cutting your budget and allocating more money to savings, think about what your fellow Americans are giving up.
Recent research by CapitalOne CreditWise reveals that Americans are making these four big changes to cut spending and increase their savings.
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1. Eat less
Just over half of survey respondents said they plan to eat less at restaurants in 2020 to increase the amount they save.
Eating out can be a big drain on your budget, so cutting back can make a big difference. And there are easy ways to cut your restaurant expenses.
One of the easiest approaches is to always have something in your freezer when you don’t feel like cooking. When preparing meals, prepare an extra portion or two and freeze any leftovers for a ready dinner. You won’t be tempted to eat out just because you’re tired and don’t want to cook.
You can also reduce the money you spend at restaurants by reducing restaurant expenses. Avoid alcohol and soda, or find a BYOB restaurant if you really enjoy wine with your meal. Look for Groupon offers or discounted gift cards to lower your bill. Consider a late lunch, which is often less expensive than dinner. And look for a credit card which offers bonus rewards for restaurants so you can turn meals into cash, miles or points.
2. Cancellation of subscriptions
Forty-seven percent of survey respondents plan to increase their savings by canceling their subscriptions. This is one of the simpler options because you don’t really need to give up much or change your lifestyle significantly.
Find subscriptions to cancel by combing through your credit card statement. Look for recurring charges and ask yourself if the service is really worth it.
If you don’t use a streaming service or have a magazine subscription that you don’t get much of, just make a phone call to cancel. Then redirect the amount to savings through automated contributions to make sure it doesn’t just get sucked into your budget.
3. Cut the cable
Canceling cable is the plan of 40% of survey respondents, and it’s a good plan. Cable TV can cost $ 100 per month or more if you have a premium plan. And there are plenty of streaming services to replace it.
If you plan to cancel the cable, make sure you know how to replace it. If you sign up for multiple streaming platforms, your bills could quickly go up again and you won’t see much savings. To avoid this, try only one streaming service at a time. Watch whatever you want on it, then undo and move on to the next one.
4. Packed lunches
Just over 20% of survey respondents plan to save more in 2020 by cooking breakfasts instead of buying them at work. Saving money this way can be especially smart, as many people don’t particularly enjoy their lunches at work – they only dine out for convenience.
If you want to become a brown bagger, make a plan to make sure your midday meal is prepared ahead of time and that you don’t rush into work mornings. You can cook weekend meals for the week ahead, for example, or cook an extra dinner every night so you always have leftovers.
Could reducing these expenses help you save?
If you are one of the many Americans who are considering cutting one or more of these expenses to increase Your savings, these tips can help you be successful.
If you aren’t already planning to eat less at restaurants, cancel subscriptions or cable, or bring your lunch to work, this might be a good time to think about it. The incentive is clear: you will soon have more money to spend on achieving important financial goals.