Build Your Budget by Reevaluating These Expenses

While putting away small amounts here or there can add up to huge savings, small expenses can be eating away at your budget. Here are few things to consider cutting from your budget to put more money back in your wallet.

Gym memberships — if you’re not going to go, they need to go

We get it, there’s no better time than now to get in shape, but if you believe you’ll find the motivation to finally exercise through a gym membership, we suggest you go with a cheaper alternative first. A gym membership usually runs around $10 a month, and while it may be worth it the first month, if the numbers of visits to the gym dwindle down to zero, that’s $120 a year that could be spent toward something else. Eden Ashley from Mint Notion offers 11 cheaper alternatives (some even free!) to a gym membership to ease you into exercising without putting a dent in your budget.

Eating out and delivery

Do your budget and your health a favor by cutting down on dining out experiences and delivery meals. While home-cooked meals take more time, they do end up saving money and can lead to a better lifestyle. A blog post on Mixed Up Money breaks down the benefits of eating at home into five reasons, ranging from environmentally friendliness to looking out for your own health.

Credit card interest rates

It’s in your best interest to pay off your credit card every month, not only because it’s good to stay out of debt (think of your credit score and the increased financial flexibility), but also because interest rates for credit cards are some of the highest rates. U.S. News’ Geoff Williams labels revolving credit card debt as one of the debts to get rid of as soon as possible. Read more on other debts that should be paid off immediately versus the debts that can afford to wait in the same U.S. News article.

Review your insurance plan

From auto to mortgage to life insurance policies, there are some plans you just don’t need anymore. Lisa Smith from Investopedia created a handy list of 15 insurance policies to reconsider, some being private mortgage insurance, auto collision insurance, and flight insurance. Some insurance plans such as credit card insurance and credit card loss insurance are completely unnecessary — “Purchasing coverage to pay your credit card bill in the event you cannot pay it is a waste of money,” according to Smith. Flight insurance also makes it onto the list of insurance plans to eliminate.

Another reason to review your insurance plans, other than cutting out the coverage you don’t need, is so you can stay up-to-date with covering what you do have. The Insurance Information Institute encourages you to review your insurance plan in these four events: when it’s time for a renewal (to check for updates and changes), after major purchases (such as diamond rings or expensive artwork), following improvements or changes to your home, and after major lifestyle changes (marriage, birth of a child).

Cable

How often you actually sit down in front of the TV and indulge in cable entertainment? If you’re sitting down to watch just a handful of shows on a few channels, consider switching to a streaming service instead. If you really do spend a hefty chunk of your time invested in multiple programs across multiple channels, it actually might be a better option to go with cable, but if you’re paying roughly $50 a month for a show you end up watching only twice a month, cut the cost. Stephen Layton from NerdWallet offers more information with this guide on whether you should “cut the cord”.

Evaluating your lifestyle to see if it matches your purchases will help you to become more conscientious of how to save and spend more efficiently. Along with cutting down on unnecessary services, consider renting tools rather than dropping serious cash on a tool you might use once or twice a year. Just maybe it’s time to reconsider spending money to save time and instead spend time to save money.