After shopping on Black Friday and Cyber Monday, you may have started to worry about your wallet (and we even still got Boxing Day coming up soon). To prepare for the happy new year with more saving, try these 5 things to reduce your expenses:
1. Cancel your gym membership.
Unless you are serious work out fanatic who use every single workout equipment, you are most likely wasting money by keeping the gym membership.
Especially if you use more expensive gym like Goodlife (with fees over $70/month), you are definitely better off to cancel the membership and purchase some work out equipment and exercise at home (you can spend $500 annually and it can still be more cost efficient than the gym).
As the gym I go to made an announcement to raise the monthly fee, I just cancelled my membership and bought a $200 indoor exercise bike. Including the annual maintenance fee, my membership costs about $35/month. In about half year, I can recuperate my initial investment. Also, I can now effectively exercise at home while watching Netflix!!
Annual Saving: $35 (monthly) x 12 - $20 (Depreciation) = $400
2. Don’t get a new phone
Unless you absolutely have to, you shouldn’t get a new phone just because the phone company offers it for “free”. To get the “Free phone”, phone companies normally require you to get a relatively more expensive plan. For example, my current FIDO smart plan costs about $45/month (it was $35/month before but they kept raising it…so much inflation…). In order to get Galaxy S8 for “free”, it’d have to switch at least to $55/month plan with 2 year contracts. That’s not free, you are basically spending $10/month for 24 months to get that phone.
Annual Saving: $10 (monthly) x 12 months = $120
3. Stop buying coffee outside
If buying coffee in the morning is your daily routine, you should stop as soon as possible. $3/day may sound like a small spending but it actually adds up. Assuming you buy coffee every workday, the annual spending could be over $750.
Instead of buying coffee outside, you can make coffee at home by brewing or purchasing K-cups (costs about $0.5 per cup) or you can drink coffee at your office if they offer it (my office does). It’s not that hard to make coffee. This is probably the easiest way you can save daily expense.
Annual Saving: $2.5 (daily) x 5 (weekdays) x 52 weeks = $650
4. Don’t pay using debit cards too often
Most banks charge fees for your each debit purchases depending on your service plan. For example, I have a basic plan with RBC and it charges $1/transaction after 12 debit purchases per month.
Instead of debit card, use credit card for daily purchases. As long as you budget properly, there is nothing wrong with using credit card. If you pay your credit card balance within 20 days of purchase, no interest will be charged. Some credit card even offers great benefits such as cash back. I have a cash back Mastercard with RBC and it gives me 1% cash back for every purchases and 2% for groceries.
Annual Saving: $1 (per purchase) x 3 (daily) x 365 (days) = $1,095
5. Start Dental Flossing
For Once, listen to your dentist and start dental flossing. “According to the Coalition on Oral Health, every dollar invested in preventive oral health care saves between $8 to $50 in restorative care.” (Excerpt from this page). A package of dental floss should last you about a year. Spend that $20 and save over $250 annually.
Annual Net Saving: $250 (assumed annual cost in restorative care) - $20 = $230
6. Cancel the balance protector on credit card
The balance protector insurance is almost a fraud in my opinion. While the fee is high, the coverage rarely applies in your life. At RBC, they charge about 1.19% of fees of credit card balance for the balance protector.
If you are curious about how terrible balance protector is, you can read the article written by CBC by clicking here.
Annual Saving: $1,000 (Monthly credit purchases) x 1.19% x 12 months = $143
If you add the potential savings above, it adds up to $2,638/year!! Obviously, the figures may vary depending on your life situation and the current services/products you use, but it gives you an idea of how much you could save by doing such simple things.
What do you do to reduce your daily expenses? Let us know in comment below!!