If you’ve looked over your budget and think you can’t cut it down any more, maybe you need to look a little harder.
There are probably some expenses you still could reduce — or drop altogether — to save thousands of dollars a year.
We found some examples of these costs and have some tips on how to slash them if you’re really determined. If you eliminated all of these expenses, you’d save a whopping amount — around $37,682 per year, based on averages.
But even by shaving off just 10% of these expenditures, you’d be around $3,768 richer by this time next year.
1. Rent
The national average rent was $1,758 per month as of April, according to real estate research company Yardi Matrix. That’s $21,096 per year.
If you were to move to a place where the cost of living is lower or bring in a roommate, you could cut your housing costs significantly.
And if you moved in with accommodating family members, you might be able to go rent-free, at least for a time.
If your home has an extra room, another option to offset housing costs is to rent that room to travelers. Try listing your spare space — or the entire home — on a vacation rental website like Airbnb, Homestay or Vrbo.
Total annual savings if you could:
- Give up the expense: $21,096 (based on the national average rent)
- Reduce the expense by 10%: $2,110
2. Car payment
The average new-car loan payment was $773 per month as of the first quarter of 2026, according to Edmunds. That’s $9,276 per year.
If possible, don’t buy a new car, especially one that is likely to lose its value within just a few years. You can opt for a car that holds its value over time or look for a used vehicle instead.
Ideally, you would save enough money to buy a used car outright instead of financing it, to avoid paying interest on the loan. If that’s not possible, at least try making a bigger down payment to lower your monthly car payment.
Getting rid of a personal vehicle and walking, biking or taking public transportation instead would be a major money-saving shift.
Or, depending on how much you drive, a ride-share service like Lyft or Uber might help you save money. You’d stand to also save on car payments, insurance, gas and on the biggest auto expense of all, depreciation.
Total annual savings if you could:
- Give up the expense: $9,276 (based on the average new-car loan payment)
- Reduce the expense by 10%: $928
3. Cellphone
American households spent an average of $1,359 per year on cellular phone services as of 2024, the latest calendar year for which the Bureau of Labor Statistics has released consumer expenditure data.
You could cut costs by adding a few friends or family members to your plan or by changing your plan.
If you don’t use your mobile phone a lot or are home enough to justify a landline, consider ditching your mobile service or getting a prepaid plan.
Total annual savings if you could:
- Give up the expense: $1,359 (based on average household spending)
- Reduce the expense by 10%: $136
4. Dining out
Sometimes you don’t feel like cooking, and that’s allowed. But let it become a habit, and that convenience can cost a couple hundred bucks a month.
The average household in the U.S. spends $3,945 per year dining out, according to the Bureau of Labor Statistics. Cooking at home is much cheaper.
Reducing your restaurant spending can make a noticeable difference to your budget, but you can also save on food at home by following our tips in “10 Super-Simple Food Staples You Can Easily Make for Cheap.”
Total annual savings if you could:
- Give up the expense: $3,945 (based on average household spending)
- Reduce the expense by 10%: $395
5. Cable
If you haven’t cut the cord yet, you might want to consider it. The average cost for a household cable TV plan as of November 2025 was about $101.11 per month, according to Reviews.org. That’s $1,213 per year.
Cutting the cord could cut that cost dramatically, with the many free and affordable alternatives to cable and satellite TV. Find out how you can ditch the high monthly bill in “The 10 Best Streaming Services You Can Watch for Free or Cheap.”
Total annual savings if you could:
- Give up the expense: $1,213 (based on average monthly cable costs)
- Reduce the expense by 10%: $121
6. Gym membership
If you’re a committed gym rat who gets your money’s worth from a monthly gym membership, more power to you.
But many of us sign gym contracts in a burst of enthusiasm and quit going after a few months. The gym membership contract, however, can keep you making monthly payments, whether you use the facility or not.
While membership programs and costs vary, Strong Home Gym says that, as of March 2026, memberships average $50 per month, or $600 per year.
You don’t have to spend that. By working out at home — walking regularly and following a DIY strength-training program, for example — you can eliminate gym fees entirely.
Learn more in “7 Free Ways to Work Out From Home.”
Total annual savings if you could:
- Give up the expense: $600 (based on the average monthly gym fee)
- Reduce the expense by 10%: $60
7. Movie tickets
The cost of a movie ticket averaged $16.08 in 2025, according to TV and internet experts at CableTV.com. Prices have been creeping steadily up at least since 1995, when a movie ticket cost an average of $4.35.
Hoping to treat the family to a theater outing? Ka-ching.
If you won’t give up movie theaters entirely, there are cheaper options. For example:
- Attend matinees.
- Take advantage of senior discounts.
- Look into independent cinemas that charge less for films that were released earlier in the year.
Total annual savings if you could:
- Give up the expense: $193 (based on the average movie ticket cost and assuming you’re seeing one movie per month in a theater)
- Reduce the expense by 10%: $19
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