When it comes to managing your money, it can be hard to sift through the morass of 'expenses' that we all have to find some savings. Classifying 'wants' as opposed to 'needs' is a tricky exercise in our modern age (is Netflix a want or need… that is the question).
In all seriousness, the old platitude of 'a penny saved is a penny earned' still rings true. If you can shave your expenses by 10%, it's the equivalent of a 10% pay rise (albeit before tax).
So here are 3 things you might be spending too much money on today. Re-examining them might just lead to you getting that 10% pay rise!
Subscription services
As alluded to above, we all love having Netflix, Spotify, Stan (owned by our own Nine Entertainment Co Holdings Ltd (ASX: NEC)), Disney+, YouTube Premium, Apple Music, Foxtel…. The list goes on. I'm sure most of you out there have at least one of these services, if not more.
But although $8/$10/$15/$20 a month seems inexpensive, these costs can quickly add up – and exponentially so the more services you subscribe to.
Taking the pruning saw to your subscription services can be a great way to save some extra cash. So why not ditch some of these and set up a recurring $20 transfer to a savings account instead?
Vices
We all have our vices. Whether it's gambling, coffee, wine, or something stronger, we humans are sadly susceptible to the lure of a vice.
Unfortunately for our wallets (and sometimes our health), there vices usually don't come cheap. Alcohol, gambling and tobacco excise ensures that these products are always going to be expensive. And although coffee (thankfully) isn't taxed for being coffee, it's still a massive burden on your wallet to hit up your favourite inner-city café every morning.
So have a think about how much you're spending on your favourite vice or vices. You could make coffee at home, stop hitting the pub every night or save your gambling for Melbourne Cup day.
Giving up the car
We Aussies love driving. But owning and running a car is hideously expensive. There's petrol (again this is also taxed), rego, insurance, tolls, servicing… the list goes on. I love driving as much as anyone, but I'm the first to admit it's kryptonite for the wallet.
So if you have 2 or more cars in your household – perhaps think about downsizing and using public transport more if you can. It's a tough choice, but one that will almost certainty save you money. Of course, this isn't a practical solution for everyone. But it's still food for thought, nonetheless.
Foolish takeaway
These 3 things are all items most of us spend money on – but are also fertile ground for finding some savings in your budget. I'm not preaching that we all need to give them all up today, but I do think it's worth some thought as to how much each is really costing you.
