Here are the top ten things that you should focus to cut down or cut out of your life if you aim to live frugally to pay off debts faster or to save money for various reasons.
1. Gym Membership
Unless you find it really useful, i.e. the membership includes social activities, all classes and 24-hour access to the gym facilities including shower (yes, save water bill), then you should reconsider your gym membership. I used to be a gym junkie, I went to the gym every day but I didn’t join any classes as I just enjoy training by myself. I’m not a real extrovert person so I hardly socialise at the gym. The membership cost AU$600 a year and I only save $30 water bill per quarter. In the end, cancelling the whole membership saves me more than just a water bill. I save time and fuel to travel to the gym. You don’t have to buy a lot of equipment to work out at home. Here is a guide on how to exercise at home.
2. Cable TV
At the time this blog post is being written, the cheapest annual plan for a Cable TV is AU$470.40 per year or no lock-in contract for AU$49 per month where you get 50+ channels of Entertainment, drama, lifestyle, docos, reality & more. This is the time where you should pay closer attention just how desperate you are for the need for entertainment. Do you really need 50+ channels? Do you have time to watch all of them? Wouldn’t it be better to just replace it to youtube or other free channels for drama, lifestyle, docos, etc?
3. Cinemas
A movie ticket for adults is currently AU$21 or AU$13 on Tuesdays. Of course, that’s not including popcorn and other snacks or drinks. If you go to see a movie at the cinema once a week, it’s $1092 a year. Now compare that to Youtube, which is free, or the cheaper options like Netflix AU$10 per month or Amazon Prime AU$6.99 per month. And you can make the snacks and drinks at home. Save heaps of money with more or less the same joy of watching a movie.
4. Restaurants
You should make it a crime to spend $36 for a plate of steak where you can get for $5 in the supermarket. But of course, when you go to a restaurant to eat, you don’t just pay for the food, you pay for the service and the environment. The question is, do you need that every week? Perhaps if you only go for birthdays, anniversaries, or any other special occasion, it is forgivable. Pack for a picnic if you are bored eating at home.
5. Car Fuel/Gas
Save fuel/gas whenever you can. Instead of going to grocery shopping once a week or worse, every 2-3 days, try to shop once every 10-15 days. Once a month if you could but since I enjoy going to the supermarket and treat this trip as entertainment, I make it once every 10 days. Or even better, choose public transport or bike ride.
6. Insurance
Whether it’s a car, home, health, or travel insurance, always compare and shop around to find a better deal. Important questions you must ask yourself when buying insurance:
1. Do I really need it? Many countries/states require insurance so of course, it’s better to have insurance than facing unnecessary penalties
2. How much is the total cost per year to get insurance?
3. What are the benefits of having such insurance?
4. How much is the excess fee, which is the out-of-pocket amount you have to pay when making a claim with your insurer?
5. How is their customer service, is it a difficult and lengthy process to make a claim?
7. Paid Courses
Want to learn about Cooking? Photography? Photoshop? Video Editing? Unless you want to do it professionally to get a job, if you’re just curious, why not try Youtube. They have heaps of free classes and many of them offer clear, step-by-step instructions to follow. Education at the comfort of your home, save on travelling, save on gas/fuel, save on parking, and of course, save on course fees.
Here is a post of How to Learn New Skills for Free Online.
8. Beauty Care (Hair dye, Manicure, etc)
Unless it’s an absolute necessity (e.g. for professional reasons like modelling where your body is your asset), you should always reconsider why you need to have purple hair or leopard-pattern nail polish, for example. I’m not here to lecture your sense of beauty but when you want to live frugally, you’ll have to distinguish between a want and a need. It can get tricky, here is a post about How to Tell the Difference Between Your Wants and Needs.
9. Newspapers/Magazines
Not only a waste of trees, newspapers and magazines are also a waste of money. These days, public libraries offer electronic access for many popular magazines for free. Check out your local public library and enjoy all the free things they offer.
10. Energy Bills
The highest bills in most households come from electricity. Reevaluate how you use the electricity in your household, from cooking, watching TV, to what type of light bulbs you use. LED light bulbs are the most energy-efficient bulbs. Cook in batches and freeze. Use slow cooker as it is more energy-efficient than electric stoves.
