By: Susan Powers
Looking for fresh ways to save money so that you can live life on your own terms? Did you know that:
- 21% of self-storage units are rented for 3-10 years, a cumulative cost of $7,000 to $23,000
- Most people underestimate how much they spend on subscriptions by $1,600 a year
- The average amount spent on drive thru coffee - $1,100 a year
By taking an honest look at your monthly expenses you can uncover several ways to trim costs in order to put more money in your pocket.
The average self-storage facility rental is 14 months but 15% of rentals are for 3-5 years and another 6% are for 6-10 years. If your items have been in storage for over a year, ask yourself…do I really need them or could I get rid of them to eliminate my monthly self-storage rental fee?
As Fall approaches take advantage of cooler temperatures to get moving. If the task seems daunting, break it down and tackle it a section at a time. Be a harsh critic of what is worth keeping/taking home, what can be sold, what should be donated, and what goes in the trash. You may want to hire someone to sort through the items for you. They can provide an objective view by taking the emotion out of the decision and help with selling and donating. The long-term savings will quickly make up for the short-term cost.
If you skim through your bank or credit card statements and discover subscriptions are costing you more than you thought, you’re not alone. 78% of U.S. households have at least a Netflix, Amazon Prime, and/or Hulu subscription, and the average American subscribes to 3.4 services. Unused phone Apps, auto renewal print subscriptions, and memberships fees are other examples.
A recent study found that Americans, on average, are spending $219 each month on subscriptions or $2,629 a year. What's interesting about this is most people vastly underestimate how much they spend. When asked how much they think they spend, the average answer was $86. That’s a big $133 monthly difference! It’s time to review your subscription expenses and eliminate those that aren’t making your life better.
The Drive Thru Habit
The average American spends $92 a month or $1,100 a year on coffee. I like my coffee as much as anyone and we all deserve those treats that make our day special. But is that coffee making you feel $1,100 special?
I don’t want to get between anyone and their caffeine but if you’re a coffee drinker, take a look at how much you are spending monthly on coffee. Like subscriptions, you may not realize how much you are spending so this is as much about mindful spending as it is saving money.
What to do with all your newfound savings?
First, have some fun. You deserve it for doing all the work to get here. Second, put that money to work for you! Pay off debt, contribute more to your 401k plan, or add to an IRA so you can live life on your terms! Contact us today for help in making sure your additional “found” money is working for you!