Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?

A happy woman who struck it rich throws cash around
ViDI Studio / Shutterstock.com

If you’ve looked over your budget and think you can’t cut it down anymore, 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. Here’s how to slash them if you are really determined. If you eliminated all of these expenses, you’d save a whopping amount — around $32,640 per year, based on averages.

But even by shaving off just 10% of these expenditures, you’d be around $3,264 richer by this time next year.

1. Rent

Nikodash / Shutterstock.com

The national average rent was $1,460 per month as of July, according to real estate research company Yardi Matrix. That’s $17,520 per year.

If you were to move somewhere 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 (short for “Vacation Rentals by Owner”). Read more in “Do This a Few Days Each Month and Watch Your Mortgage Disappear.”

Total annual savings if you could:

  • Give up the expense: $17,520 (based on the national average rent)
  • Reduce the expense by 10%: $1,752

2. Car payment

szefei / Shutterstock.com

The average monthly new-car loan payment was $568 as of June, according to Edmunds. That’s $6,816 per year.

If you can, don’t buy a new car. Instead, opt for used vehicles. Cars are one of the first things cited in “You Should Never Buy These 12 Things New.”

Ideally, you would save enough money to buy a car outright instead of financing it, to avoid paying interest on the loan. At least, try making a bigger down payment to lower your monthly car payment.

Getting rid of a personal vehicle and taking public transportation, walking or biking 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 a car payment, insurance, gas and on the biggest auto expense of all, depreciation.

Total annual savings if you could:

  • Give up the expense: $6,816 (based on the average new-car loan payment)
  • Reduce the expense by 10%: $682

3. Cellphone

Man stares at cellphone
chainarong06 / Shutterstock.com

The typical American household that has four wireless phone lines and pays $100 per month for service also paid another $260 per year in taxes, fees and surcharges as of 2019, according to the nonprofit Tax Foundation. That’s a total of $1,460 per year.

You could cut costs by adding a few friends or family members to your plan, or by changing your plan.

Also see what you can save by comparison shopping among carriers using Money Talks News’ cellphone plan comparison tool.

If you don’t use your mobile phone a lot or are home enough to justify a landline, consider ditching your mobile service, or get a prepaid plan.

Total annual savings if you could:

  • Give up the expense: $1,460 (based on the typical four-line, $100-a-month plan)
  • Reduce the expense by 10%: $146

4. Dining out

grocery shopper
mavo / Shutterstock.com

Sometimes you don’t feel like cooking, and that’s allowed. But let it be a habit, and it can cost a couple hundred bucks a month.

The average household in the U.S. spends $3,434 per year dining out, says the U.S. Department of Labor’s latest consumer spending data. Cooking at home is much cheaper.

Reducing your restaurant spending can make a noticeable difference to your budget. Here are tips and tricks to help you shave costs: “12 Ways to Slice Your Next Restaurant Check in Half.”

Total annual savings if you could:

  • Give up the expense: $3,434 (based on average household spending)
  • Reduce the expense by 10%: $343

5. Cable

Minerva Studio / Shutterstock.com

If you haven’t cut the cord yet, you might want to consider it. The average household cable package costs about $217 per month, according to DecisionData.org. That’s $2,604 per year.

Cutting the cord could cut that cost dramatically, with the many free and affordable alternatives to cable and satellite TV. “The 8 Best Money-Saving Cable Alternatives” gives pricing for some of the best TV alternatives.

Lowering your costs is great. Free is even better. For no-cost options, read about “15 Free Streaming Services to Watch While Stuck at Home.”

Total annual savings if you could:

  • Give up the expense: $2,604 (based on the average cable package)
  • Reduce the expense by 10%: $260

6. Gym membership

Daxiao Productions / Shutterstock.com

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 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, Healthline says memberships average $58 per month, or $696 per year.

Maybe the COVID-19 pandemic already has got you exercising on your own for free. If not, give it a try. Running or walking regularly and doing a strength training program at home, for example, lets you eliminate gym fees entirely.

We have other ways to trim costs in “7 Smart Ways to Save on a Gym Membership.”

Total annual savings if you could:

  • Give up the expense: $696 (based on the average monthly gym fee)
  • Reduce the expense by 10%: $70

7. Movie tickets

Multiethnic movie happy audience clapping
Dean Drobot / Shutterstock.com

The cost of a movie ticket averaged $9.16 in 2019, according to the National Association of Theater Owners. Prices have been creeping steadily up at least since 1969, when a movie ticket cost $1.42, on average.

Treating the family? Ka-ching.

If you won’t give up the movie theater 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: $109.92 (based on the average movie ticket cost and assuming you’re seeing one movie in theaters per month)
  • Reduce the expense by 10%: $10

How to find cheaper car insurance in minutes

Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

9 Indestructible Products That Are Worth the Price
9 Indestructible Products That Are Worth the Price

If you’re willing to pay a little more for these products, you may never have to shop for another again.

8 Types of Companies That Check Your Credit Report
8 Types of Companies That Check Your Credit Report

Federal law lets these entities peek at your credit — regardless of whether you’re borrowing money.

The 14 Most Deadly Car Models
The 14 Most Deadly Car Models

These vehicles are involved in fatal accidents at least twice as often as the average car.

7 Gadgets Under $60 That Can Boost Your Health
7 Gadgets Under $60 That Can Boost Your Health

These Amazon finds can help ease foot aches, boost energy and even protect your heart.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
This Gas Station Scam Is Victimizing More Drivers
This Gas Station Scam Is Victimizing More Drivers

For the second straight year, a growing number of Americans believe they’ve fallen prey to this scam.

This Is the Most Popular Age for Claiming Social Security
This Is the Most Popular Age for Claiming Social Security

Both men and women are most likely to start receiving Social Security benefits at this age.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?
Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?

You could save more than $30,000 by setting aside these costly expenses for just one year.

6 Things You Should Never Buy at Trader Joe’s
6 Things You Should Never Buy at Trader Joe’s

We love Trader Joe’s for plenty of reasons. But think twice about this handful of products.

Don’t Toss These 7 Household Items — Sell Them
Don’t Toss These 7 Household Items — Sell Them

Here’s how to earn cash as you give new life to these unwanted items.

6 Legal Documents Retirees Need — but Don’t Have
6 Legal Documents Retirees Need — but Don’t Have

Few retirees have these documents that are crucial to their golden years — especially during a pandemic.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

7 Unusual Ways to Declutter Your Home
7 Unusual Ways to Declutter Your Home

Tired of possessions weighing you down? Here are seven ways to declutter painlessly and effectively.

The 15 Worst States for Retirees in 2020
The 15 Worst States for Retirees in 2020

Based on dozens of metrics tied to affordability, quality of life and health care, these are not ideal places to spend retirement.

11 Expenses That Quietly Drain Your Wallet
11 Expenses That Quietly Drain Your Wallet

It’s scandalously easy to overspend in these areas of your life.

9 Dumb Ways You Are Ruining Your Home Value
9 Dumb Ways You Are Ruining Your Home Value

Homeowners, beware these mistakes that can drive away potential buyers.

10 Deep Discounts Available on Amazon This Friday
10 Deep Discounts Available on Amazon This Friday

These items are all steeply discounted — but the deals won’t last long.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

7 Tips for Building an Emergency Stockpile
7 Tips for Building an Emergency Stockpile

A pandemic or natural disaster could leave you reliant on your existing food supply. Is your pantry prepared?

10 Things That Really Are Free on Amazon
10 Things That Really Are Free on Amazon

These freebies are available to anyone — no Prime membership necessary.

Why Half of Retirees Now Owe Taxes on Social Security
Why Half of Retirees Now Owe Taxes on Social Security

Growing numbers of seniors are paying taxes on their Social Security benefits, but you might be able to avoid this fate.

15 Outrageously Overpriced Products — and How to Save on Them
15 Outrageously Overpriced Products — and How to Save on Them

Retailers mark up products by hundreds of times their cost — but you don’t have to pay the premium.

21 Things You Should Always Buy at a Dollar Store
21 Things You Should Always Buy at a Dollar Store

Dollar stores have great bargains on both everyday and occasional purchases.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.