Cut It Out: Hidden Expenses

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As you settle in for cozy weather, the holidays and end-of-year expenses will be here before you know it. Saving some extra money now can make end-of-year spending a breeze. Here are some ways you can cut spending.

Small Cuts Equal Big Savings

Finding frequent unnecessary expenses (no matter how small) is the first step when cutting expenses.

Recurring subscriptions are a common expense often overlooked when budgeting. Whether it’s streaming platforms, apps, or memberships, reducing the number of subscriptions you pay for may make a noticeable difference over time.

Non-necessity purchases can become habitual, like buying that pumpkin spice latte a few times a week. If you think about how it adds up, it can change your perspective. For example, if you pay $7 per coffee three times a week, you’ll spend $1,092 in a year.

Using free resources like our Spending analysis tool in digital banking can help you easily identify recurring expenses. Start by identifying some expenses that won’t be too painful for you to cut out and work towards the harder ones. You might find that saving is more motivating than you think.

Eliminate Temptation

Unsubscribe from your favorite retailer’s email list and unfollow influencers who push your favorite products, so you aren’t tempted to spend on things you don’t need. When "good deals" aren't constantly enticing you, you are less likely to spend on things you don’t need.

Look into services that help you unsubscribe to mass emails easily and quickly.

Pay Off Debt

Paying on multiple credit cards with high interest rates can feel like you aren’t making a dent. Look at your interest rates for each card and consider using one of the following strategies.

Debt Avalanche Method
Make on-time minimum monthly payments on all your debt except the one with the highest interest rate. Pay extra on the debt with the highest rate. Once you pay that debt off, apply the same strategy to the next highest interest debt. This strategy works by getting the costliest debt out of the way first to save you money over time.

Debt Snowball Method
Pay off the credit card with the lowest balance first while paying the minimums on others. Once you have the first card with the lowest balance paid off, you can take the amount you were paying on that card and put it toward paying off the next lowest balance card, and so on.

Debt Consolidation
Consolidate your debt with a lower interest rate. This strategy works by putting multiple debts on one loan or credit card with a lower interest rate so you can pay it off faster. This strategy especially works well if you transfer your debt to a card that also has no fees for balance transfers. Being organized and committed to paying off debt within a certain timeframe is key for this strategy.

Consider the total amount of your debt, interest rates, and what motivates you to help you determine what strategy to use.

Go Green

Being energy efficient is good for the environment and your wallet. Making some changes in the home, like installing a programmable thermostat, switching your light bulbs to LED, and unplugging appliances when they aren’t in use, can lower your monthly electricity bill. It might seem small, but saving energy will save money over time.

Shop Your Insurance

When was the last time you took a look at your insurance coverage? Work with your insurance agent to discuss ways to lower your payments, such as raising your deductible (review the risk) or asking if you qualify for a discount (like bundling policies). Periodically shopping around is also good practice to ensure you’re getting proper coverage at the lowest cost.

Cell Phone Plan

Take a look at your cell phone data and determine if you are on a plan that makes sense for your cell phone use. For example, are you paying for unlimited Wi-Fi hotspot and don’t use it enough to justify the higher-cost plan? Just like with insurance, it’s good practice to periodically check to see if your plan is still right for you.

How to save on your cell phone bill

Cash Back Spending Categories

Look at any cash back rewards you have and build those into your normal spending for things you need. Some are rotating, so try to make a habit of checking if there are any items or brands you frequently need to buy available for cash back.

The Bottom Line

Making small changes to your spending habits has the potential to create big savings over time. From eliminating unnecessary subscriptions to tackling high-interest debt and optimizing your monthly bills, these strategies may free up some holiday spending cash.

Ready to maximize your savings? Take advantage of our free member benefits like the Spending analysis tool in digital banking and personalized sessions with our certificated Financial Coaches to get started.