18 Expenses to Cut That Will Save You Over $10,000 Annually
Do you often hear yourself saying, “I deserve this,” and then end up overspending? Whether it’s a trendy new fashion item or the latest iPhone, you might struggle to resist these purchases.
According to the U.S. Bureau of Labor Statistics (BLS), the average American household earns around $94,000 and spends almost $73,000 every year on basic needs like housing, food, and transportation. The small margin between income and expenses can lead to financial trouble if you’re not careful enough. Luckily, you can prevent this issue by cutting unnecessary costs.
We’ve explored ways to cut expenses and save up to $10,000 per year. Review these costs to decide which ones you can reduce or eliminate from your budget.
1. Premium Gas
Annual Savings: $491 ($40.95 per month)
If your car doesn’t require premium gas, avoid it. The latest data shows that premium gasoline costs an average of $0.91 per gallon more than regular gas.
With the average driver covering about 13,500 miles per year and a car consuming one gallon every 25 miles, you could save up to $491 annually by choosing regular gasoline.
2. Haircuts
Annual Savings: $89-$172
Women’s haircuts are often more expensive than men’s, but men have to go more often. Even if that’s the case, women still pay more than men over the course of a year. Women pay an average of $172 per year, while men pay $89 per year.
Choose a local hair salon so you won’t have to worry about the expenses of transportation. Haircut prices rely on the stylist, so don’t go to a luxurious place offering high-end services.
3. Dry Cleaning
Annual Savings: $300 to $600 ($25 to $50 monthly)
You don’t need to pay for dry cleaning if you know how to do laundry on your own. This allows you to save $25 to $50 for 3 to 5 items.
If you dry clean only a couple of items per month, you can save up to $300 to $600 per year by doing it yourself. The savings can increase if you bring in more pieces for dry cleaning.
4. Newspaper Subscriptions
Annual Savings: $96 ($8/monthly)
Newspapers have shifted from physical papers to online subscriptions, allowing you to read news conveniently on your smartphone.
You can read news online with a subscription. The New York Times charges $25 per month, while the Washington Post costs $70 every year or $8 per month. However, you can access some of their content for free by registering on their site.
5. Credit Card Interest
Annual Savings: $1,756.63 ($146.39/monthly)
If you don’t pay your credit card balance in full each month, you incur interest. Forbes reports that the average credit card interest rate is 27.62%, which adds to the debt from your transactions.
The Federal Reserve shows that the average credit card debt per borrower is $6,360, meaning you’ll pay about $1,756.63 in interest annually. You can avoid this high cost by paying in your credit card bills in full every month or paying with your debit card.
6. Warehouse Club Memberships
Annual Savings: $50 to $60 per year
If you have a big family and buy groceries in bulk, warehouse clubs like Costco and Sam’s Club offer discounts. Sam’s Club’s annual membership costs $50, while Costco’s costs $60.
However, if you don’t have a large family, these memberships might not be worth it. Buying in bulk is impractical for someone living alone or with a small family, making the membership fees a waste.
7. Brokerage Commissions and Fees
Annual Savings: $510
Investing can be a good financial decision, especially if you want to retire sometime in the future. However, full-service brokerage firms charge for the trade and broker commission, which are different for each firm. For T.RowePrice, for example, you need to pay the annual maintenance fee of $30 and cash management service fee of $40/month.
Take a more hands-on approach to your investments and DIY them. Learn about different types of investments and choose those that fit your financial situation and portfolio.
8. Bottled Drinking Water
Annual Savings: $56.26 ($4.68/monthly)
Hydration is essential, and you need to drink 6 to 8 glasses of water daily to stay healthy. Bottled water is significantly more expensive than tap water, which costs about $1.23 per gallon.
Stop buying bottled water and use reusable bottles instead. Fill them with tap water and refill them at work or wherever you are to save money.
9. Magazine Subscriptions
Annual Savings: $25 ($2/monthly)
Magazines are informative and entertaining, so it’s not surprising that you’d want to subscribe. According to Statista, American consumers spend about $25 per year on magazine subscriptions, a $2.83 increase from the previous year.
If you unsubscribe, you can save at least $25 per year, or even more, depending on the magazine. For example, Forbes charges $71.94 annually, so you could save that amount if you cancel your subscription.
10. Online Shipping Fees
Annual Savings: $60 ($5/monthly)
Do you like to shop online because it’s convenient? It can actually cost more due to shipping fees, often around $5 for USPS retail ground shipping, and even higher with carriers like FedEx, especially if you expedite packages.
Instead, shop locally where you don’t pay shipping fees and save on gas. Plus, going out offers a better experience than just a few clicks on your phone or laptop.
11. Gym Memberships
Annual Savings: $720 ($60/monthly)
The Centers for Disease Control and Prevention (CDC) recommends at least 150 minutes of moderate-intensity activity per week or 2 days of muscle-strengthening activities. Do you need a high-end gym membership for this? No, and you can save $720 per year if you’re going to high-end establishments like Gold’s Gym.
Take a brisk walk for about 30 minutes every day to meet the minimum requirements for fitness. If you want to work out more, find routines online that you can do at home. Invest in simple workout equipment like dumbbells and resistance bands.
12. Coffee
Annual Savings: $702 ($58.50/monthly)
Coffee has become part of our everyday routine. According to a 2024 study, 73% of American consumers drink coffee daily, with the rest drinking only once to a few times a week.
You can save more money by choosing a more affordable coffee. Instead of a tall brewed Starbucks coffee for $2.95, choose the cheaper McDonald’s coffee for only $1. In one month, you’ll save roughly $58.50, which adds up to $702 per year.
13. Gaming Apps
Annual Savings: $377.40 ($31.45/monthly)
Spending on things that bring you joy, like your hobbies, is a good investment in your health and happiness. Statista claimed that in 2023, users spent an average of $31.45 every month on mobile games and in-game purchases.
Many phone games are free, so try those if you want to play. Avoid falling for the in-game packages that are repeatedly offered while you’re playing.
14. Lunch Out
Annual Savings: $3,600 ($300/month to cover for approximately 20 lunch outs)
In the United States, households spend an average of $3,639 per year on food taken away from home. This amounts to about $303 per month, a significant part of your monthly expenses. Besides the meal, you also pay tips, which can total around $15.
Learn to cook and make it a habit to eat at home with your family. If you’re at work, pack a lunch to take with you.
15. Manicures and Pedicures
Annual Savings: $864 ($72/monthly)
Do you often go to the salon to spruce up your fingers and nails? Manicure costs roughly $42 and pedicure sessions cost $30 each, so getting both means spending around $72.
There’s nothing wrong with a little pampering, but if you need to cut expenses, this treat is one you can skip. Instead of going to the salon, learn to do it at home to save roughly $864 per year.
16. Bank Fees
Annual Savings: $420 ($35 per month)
When you open a bank account, you get charged for every transaction. Some fees are deducted when you overdraft your bank account, which can range from $35 per transaction, depending on the bank.
If you want to avoid these fees, read your account agreement for hidden charges and always keep an eye on your balance. Online banks are a great option for fee-free banking.
17. Ride-Sharing Services
Annual Savings: $1,284 ($107/monthly)
Ride-hailing apps have conquered the transportation scene, adding more options for everyone to conveniently get from one place to another. A 2022 survey shows that 8% of respondents use these apps more than 3 times a week, while 10% claim to use them 3 times or less every week.
While it’s convenient to use Lyft or Uber, it can be expensive. A Bloomberg Second Measure research shows that Uber customers spend an average of $107/month while Lyft users spend $95/month. You can save as much as $1,284 every year if you consider biking instead of driving.
18. Satellite Radio Subscription
Annual Savings: $227.88 ($18.99)
A satellite radio refers to equipment that allows you to access AM and FM channels. Listening to music on Sirius XM Music & Entertainment comes with a fee of $18.99. You can cut this expense from your budget and check out free options.
If you love music and want to enjoy it without spending anything, you can do so by choosing free platforms. While Spotify charges $11.99 for a premium and ad-free account, you can still use the application to listen to music for free only with ads in between songs.
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