4 expenses to cut in 2024
There's no way around it — saving money can be hard. Life gets expensive, and it's easy to feel like you can't put money away for the future each month. However, there are ways to cut your spending now so that you can have more to work with down the road.
That said, what you do with the money you save is just as important as cutting your spending. You don't want the money to sit in a checking account and earn nothing. In many cases, it may make more sense to deposit it into a high-yield savings account instead, where it will earn interest and start building a nest egg for the future.
So, if you want to put more of your money into savings, here are some simple expenses you can cut in 2024.
Need somewhere to put all the money you save? Open a high-yield savings account today.
4 expenses to cut in 2024
When it comes to saving money, remember that every little bit counts. You can follow all or just a few of the suggestions below, but either way, you'll save money that could make a difference down the line.
Don't buy coffee
Telling someone they can save money by making coffee at home is a bit of a cliche, but it's still good advice. Putting a stop to your daily trips to Starbucks won't instantly position you to buy a home or pay off higher-interest debt, but it will result in a good amount of cash to save throughout the year.
Let's do the math. A grande latte at Starbucks costs $3.65. If you buy one daily, it amounts to $18.25 per week. If you make coffee at home every day for an entire year – or drink the free coffee at your office – you'll have $949 at the end of the year to put into your high-yield savings account instead.
Start shopping for a high-yield savings account to boost your savings now.
Cancel subscriptions you don't use
It's a common issue — you subscribe to a magazine to read one article, intending to cancel before the free trial runs out. However, you forget shortly after, only to learn months later that you've been paying $12 a month for a magazine you don't read.
The new year is the perfect time to go through all of your subscriptions and determine which you need and which you don't. If there's a streaming service that you used to watch one show on but don't anymore, it may be time to get rid of it.
Let's say you cancel three streaming services that each cost an average cost of $12 per month. Over the year that gives you $432 that can instead be put into the bank where it will be working for you.
Eat out less
Everybody loves a good meal out, but the costs can start to add up quickly. This is especially true today since delivery apps make it easier than ever to have food sent to your door — often with exorbitant fees.
You don't have to stop eating out entirely, but you may want to consider cutting back. If you currently have food delivered two times a week, try reducing it to one. You can also use this as an opportunity to learn to cook.
If you cut out one $25 delivery meal (including taxes and tips) each week, you'd have an extra $1,300 for savings by the end of the year.
Cut back on entertainment
Everyone loves a show, but entertainment is expensive — and there are alternatives out there. Let's use books as an example. Reading is a fantastic way to exercise your mind and entertain yourself, but new books are expensive. Instead, get a card from your local library. Many will even let you rent ebooks.
Let's say the average new book from a bookstore costs about $15. If you read two books per month but get them from the library instead, you would save $360 throughout the year.
How to make the most of your savings
It's important to make the right decisions with the money you save once you've committed to cutting your spending. A high-yield savings account is an easy way to take the money you've saved and turn it into cash you can use when you need to in the future.
Right now is an especially good time to consider opening a high-yield savings account, as rates are very high. They may go down soon, but any money you can put in now will still earn that high rate, at least for a while. High-yield savings accounts allow you to take money out when you need it — and some even let you make ATM transactions.
The bottom line
Saving money now will make it easier for you to achieve your goals in the future. It isn't easy, but there are some simple things you can do to cut your spending this year so you can put more into the bank. And when you do, you may want to make sure that you're putting it into a high-yield savings account, which allows you to earn interest and build more wealth.
