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Save Money   ->  Cost Cutting Suggestions and Estimated Savings

Cost Cutting Suggestions and Estimated Savings Over 30 Years

There are many ways to reduce spending.  In order to have funds available to Pay Yourself First, it's usually necessary to find some way of spending less.  Some ways to reduce expenses are shown below.

Cost cutting measure Estimated
daily savings
Savings accumulated
@7.5% compounded return
over 30 years.
Quit smoking. $6.00 $226,445
Pack a lunch instead of buying. $5.00 $188,704
Cut down on eating out, and frequent trips to the coffee shop. $3.00 $113,222
Cut down on liquor purchases. $1.00 $37,741
Do you really need call waiting, voice mail, etc.?  How much could you save by reducing some of the telephone features you use? $0.50 $18,870
Do you spend a lot on long distance calls?  Check to see if you are on the best plan.  If most of your calls are to one area code, investigate getting a second phone line for that area code, using a VOIP (voice over internet), or internet broadband line. $0.75 $23,806
Do you really need high speed internet?  Cable companies have lower speeds at lower costs. $0.40 $15,096
Cell phone - do you really need it, or one each?  Do you need that monthly plan, or could you use prepaid phone cards? $1.00 $37,741
Could you reduce or eliminate your cablevision bill? $1.00 $37,741
Turn down the heat.  Turn off the lights and TV when you are not using them.  This saves money and helps the environment. $1.00 $37,741
Make more meals from scratch instead of using expensive pre-packaged foods. $0.50 $18,870
Fix it yourself.  Do-it-yourself books are available at the library, and it isn't really as hard as you think. $0.50 $18,870
Don't buy on impulse, even groceries.  Make a list of what you need. $0.10 $3,774
If you think you need something, put it on your list.  Then think about it.  Do you really need it, or will you just be adding to the "stuff" you own? $0.50 $18,870
Cut fuel costs by cutting the number of trips you make for shopping or other purposes.  Build up your list and don't make the trip until you really need to. $0.25 $9,435
Do you really need all those movies, and music CDs?  You can listen to the radio and watch TV. $0.15 $5,661
Total of all above estimated cost savings - before tax $21.65 $817,088

The accumulated savings amounts are calculated assuming that the annual savings are deposited at the end of each year, and rates of return are compounded annually.

Tip:  You would be amazed at how fast small savings can add up.

Revised: October 31, 2020

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