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Inflation just keeps climbing. It started with supply chain issues. That sent the prices of electronics and used cars through the roof. Soon after, the cost of eggs, beef, and coffee beans climbed too, thanks to shortages and poor harvests. I get it, supply and demand. However, I can’t help but feel that companies are taking advantage of the situation and using all kinds of excuses to increase prices more than is justified. Our wages sure didn’t keep up with inflation!
With prices going up everywhere, we’re more conscious of our monthly budget. We didn’t go extremely frugal, but we definitely cut back on expenses that crept into our lifestyle without us realizing. We cancelled Amazon Prime to stop buying unnecessary things, contacted our insurance companies to negotiate better rates, and tried new recipes instead of dining out. (The tipping culture is getting out of hand, too.)
Everyone I know is in the same situation. We’re all just trying to find creative ways to save money without feeling like we’re missing out.
One thing is that you don’t need to stop living or deprive yourself of the things you truly enjoy. However, you will need to make changes in your daily habits if you want to improve your finances. You don’t need to overhaul your spending overnight. Start with a mini no-spend challenge and see how much you can save. Take a look at where you can apply these money-saving tips and make a real difference in your budget.
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1. Food Delivery
You have no idea how much money you’re throwing out the window every time you place an order on food delivery apps like DoorDash and Uber Eats. First of all, you’re paying more for that burger & fries than in-person because restaurants have to mark up their prices to factor in the fees they have to pay to the platforms. Secondly, delivery & service fees add up quickly and range from $2-$5 per order. Lastly, tips aren’t required, but if you want your food to be delivered promptly, tipping a few dollars is what they expect. If you must do takeout and you’re outside already, go personally and cut the delivery fees.
2. Brand-Name Groceries
Great! You’re finally committed to quitting your food delivery addiction. Now that you’re cooking at home more, you’re also doing more grocery shopping (nope, nice try, Instacart!). Groceries aren’t cheap today, but the cost savings compared to eating out are still significant. Making your own meals is often one-third more affordable than dining out.
You can cut your grocery bills by 20%–30% by switching from brand-name products to store brands. More often than not, you won’t be able to tell the difference. If you love Heinz ketchup and won’t give that up, that’s fine. But can you taste the difference between eggs from Happy Eggs and Great Value? How about mac and cheese? There are plenty of items that you should buy generic over name brands to save big. Give store brands a try, and if you don’t like them, go back to the brand names.
3. Cancel Unused Subscriptions
Subscriptions quietly bleed your bank account dry month after month. Companies entice users to sign up with a free trial (who doesn’t like free stuff, right?), and many people forget to cancel after the trial period ends. If you downloaded a meditation app and don’t use it anymore, cancel it immediately. Go through your bank or credit card statement closely. Look for charges from services like Netflix, Hulu, Spotify, Amazon Prime, or Peloton. Cancel anything you haven’t used in the past month, or replace standalone apps with ones that offer multiple services like YouTube Premium. Set a reminder on your phone to review your subscriptions every 3 months.
4. Clothing or Shopping “Treats”
I was guilty of this while working at my previous 9-to-5 job. I engaged in retail therapy, thinking that it would make me happier. It didn’t, and it made me poor. A cute $45 top, paired with $100 heels, may not seem like much. But over a month, my credit card bill ballooned. How did I stop buying things I didn’t need? I banned myself from browsing my favorite stores (in-store and online) to see if there was anything on sale, or just for fun. I unsubscribed from marketing emails that tempted me to spend. When I got bored, I went for walks and worked on my furniture flipping side hustle. Nowadays, I have a capsule wardrobe with classic pieces that I love. My shopping has been more intentional, less impulsive.
5. Overpriced Auto Insurance
Many people stay with the same insurance provider for years without shopping around. We assume that staying loyal means we’ll get better rates. But that’s not true. In most cases, your rates go up every year. Your provider assumes you’re satisfied and won’t bother switching. When you get your annual letter from your insurance company, call different companies and compare their quotes. Better yet, get in touch with an insurance broker to help you access special rates to save money on car insurance. To reduce your insurance bill, increase your deductible if you’re a safe driver and rarely make claims. Opt out of extra services that you do not need, like rental coverage or roadside assistance. Ask about discounts for bundling home and auto. Good driver and low mileage discounts can also help.
6. Premium Cell Phone Plans
Premium phone plans are way more expensive than they need to be. Everyone else might be paying crazy phone bills, but that doesn’t mean you should, too. Most people don’t even use half their data. If you’re like me, you’re probably on Wi-Fi at home, at work, and pretty much everywhere else. Unless you’re binge-watching in the car and hotspotting your laptop 24/7, you don’t need unlimited cellular data. Cut your phone bill in half by switching to low-cost carriers like Mint, Visible, or US Mobile. These providers use the same networks as Verizon, AT&T, or T-Mobile.
7. Expensive Rent
Rent or mortgage is one of the biggest monthly expenses. If it eats up more than 30 percent of your income, it may be time to make a change. For larger metropolitan cities like New York City, that figure can be as high as 40 to 50 percent of your monthly paycheck. No one wants to have a roommate if given the choice, but splitting the cost is one of the easiest ways to save money on rent. Downsize to a smaller place or a different neighborhood with lower rent. Negotiate with your landlord before signing a lease renewal. Landlords want long-term and respectful tenants. Try negotiating a discount for a longer lease and paying early. Rooftop patios or game rooms seem nice until you realize you’re paying for them. Hard pass.
8. Alcohol & Cigarettes
Someone once said that quitting smoking leads to a richer life, both figuratively and financially. Cigarettes and alcohol are things frugal people will never waste their money on. The Tobacco-Free Kids organization reports that someone who smokes a pack a day can save between $2,900 and $5,300 a year by quitting. Add alcohol to the mix, and the savings will blow your mind. Giving up alcohol for just one year can free up roughly $3,000 that would have gone down the drain. That is more than $8,000 a year that could go toward debt, savings, or building wealth. On top of that, medical bills will also shrink in the future.
9. Buying Lunch at Work
The food court at noon is not for the faint of heart. You have to weave through the crowd, deciding what to eat without bumping into someone. It’s a hassle! That’s why I prefer bringing my lunch and heating it up in the lunchroom. Less stressful and saves both time and money. Buying lunch every day can cost $10 (if there are promos) to $20 (if you feel like treating yourself). This adds up to $200 to $400 per month, or $2,400 to $4,800 a year. Leftovers from dinner will cost you less than $5 a meal. I like to prepare my food on Sunday so I have everything ready in the fridge for the week. My favorites are wraps, salads, and pasta. Super easy and much healthier than fast food. You can still eat out, just don’t do it every day.
10. New Cars
After rent and mortgage, the next biggest expense is often your vehicle. A shiny new car sure sounds nice. Still, is it really worth spending $10k more just for the smell and bragging rights? And let’s not forget that when you’re shopping for a new car, you’ll be tempted by trim upgrades with better tech. That’s an extra cost.
If you think that purchasing a new car means you’ll be getting a more reliable vehicle, you’re wrong. Some brands and models are just built better than others. Generally, Toyota and Honda are among the most reliable brands, and repair bills are often lower compared to luxury brands (Audi, BMW, Mercedes).
But having said that, prices in the used car market have gone up compared to the pre-pandemic days. Do your research before you sign on the dotted line.
11. No-spend Challenge
The idea behind a no-spend challenge is to curb your non-essential budget. Groceries and gas are fine. You need food to survive and a way to get to work. Takeout and shopping are out of the picture. Go through your freezer and pantry and cook whatever you have. Amazon? Forget it. Avoid going on the site. Don’t click on any ads.
Entertainment-wise. Watch your old favorite movies. Play Exploding Kittens with the family. Grab a free book from the library to read. All free.
Try it for a month and put the money you would have spent in a jar to see how much you’ve saved. When the challenge is over, enjoy something you love. Grab a Starbucks frappuccino or spend time out with your friends to celebrate your effort.
12. Skip Premium Gas
When I bought my first car, I filled it with premium gas every time. I thought it was needed, or else I would be damaging the engine and would have voided the warranty. Then I read in Consumer Reports that most cars can run safely on regular gas. Car experts on YouTube said the same thing. Who knew that I was overspending for no reason?
When in doubt, check your owner’s manual to see what it says. If your manual says “Premium fuel required,” you have to follow it and use premium gas. However, when it says “Premium recommended,” you’re in luck. Regular gas will be 100% fine. The difference is in the words “required” versus “recommended.”
Many gas stations advertise premium as “engine cleaning,” but regular gas already has the same additives required by law to keep your engine clean. Use the gas savings on things that actually help improve fuel efficiency. Get regular oil changes, check your tires, and replace your air filters.
13. Bottled Water
I don’t like drinking tap water. It has a strong metallic taste to it. I stuck to drinking bottled water for many years. Today, I drink filtered water from my big Brita water filter pitcher. I love that I’m using less plastic now and saving money at the same time. It doesn’t take up a lot of space and holds up to 27 cups. I refill it daily.
A case of 24 bottles isn’t expensive. Maybe $6 to $8 a case. But the cost adds up quickly if you’re aiming for 8 cups of water a day. If we do the math, you’re really paying about 25 to 30 cents per small bottle. When you use a water filter pitcher at home, you’re spending maybe 5 cents per fill (including the cost of the water filter). That works out to around $50 a month in savings. Definitely not a drop in the bucket.
If you don’t like drinking plain water, you can easily add natural flavoring to it. Lemon slices, cucumber, mint, or frozen berries are super tasty and inexpensive.
14. Salon Visits
The last time I visited a salon was at least 6 months ago. That’s because my hairstyle is pretty low-maintenance. Simple layered long hair. Nothing fancy. I only go in for trims to keep my hair healthy-looking. No coloring or highlights. And before going to the salon, I wash my hair at home and just ask for a quick dry cut. The salon shampoos smell too strong for me, so I like using the unscented ones at home. It saves me $5 every visit. If you’re getting your hair dyed, that’s a different story.
Another reason why I haven’t been to my hairdresser in a while because I started trimming my own split ends. I watched a couple of YouTube tutorials to guide me, and it turned out way better than I expected. Now, I’m going to save the $75 haircuts for special occasions.
15. Daily Coffee
Buying coffee every day at a coffee shop is an expensive habit. It may not feel like it, but it is when you crunch the numbers. A tall brewed Pike at Starbucks costs about $3. Double that if you drink two cups a day. Lattes cost even more!
Yes, it takes time to brew coffee at home, but I’m pretty sure there were many times when you’ve waited patiently in line for more than 10 minutes to place your order. Making coffee at home takes less than 10 minutes from start to finish.
A bag of coffee beans at Trader Joe’s is $7.49 for 14 oz. You can make around 21 cups from one bag. Even after adding in the cost of filters, each cup still costs less than 50 cents.
If you don’t already have a coffee machine, you can get one on sale for around $100. Pour-over coffee drippers are also very affordable. Save the holiday lattes for when you’re hanging out with friends so they feel more special rather than routine.
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