Save over $15,000 this year by following just these four small steps.
Cutting the Cord
I never thought I would say this in a million years, but I’m cutting the cord and venturing out into the world of online streaming services. Admittedly, if you’re an avid TV watcher then this isn’t for you and you may prefer to look into the cheaper xfinity internet deals that are on offer. You will still save money by switching to a cheaper plan, just not as much as cutting it completely. For me, it worked wonderfully. When I sat down and looked at the shows I actually watch, it made more sense to buy complete seasons of my favorite shows instead of paying over $180 a month for cable, phone and internet. I love HBO, but all I watch is Game of Thrones and the occasional movie. Once I did the math, it was a no-brainer. I will save over a $1000 a year by bidding adieu to my cable provider and using Amazon Prime.
Save Money on Daycare
One of the most expensive bills I have is paying for daycare. In my neck of the woods, the daycare bill can run from $1200 to $2000! By choosing a home daycare provider, I will be saving $480 a month (or $5,760 a year). That’s huge! That’s money that can go into Junior’s college fund OR dare I say it towards your retirement.
Signing up for a Flexible Spending Account
Let’s face it, having children is one of the biggest expenses there is! By signing up for a dependent care flexible spending account, I can have expenses reimbursed (up to $5,000) each year. That means that in addition to saving $5,760 by switching to a home daycare provider (see above), I can also put $5,000 back into my pocket and reduce my taxable income at the same time!! Putting it altogether, I can expect to pay $4,360 on childcare this year!
Buy Buy to Dinners Out
I love to cook. I love cooking all of those drawn out recipes that take hours to make but are soooo delicious when they’re finished. What I’m not so fond of are the 50 dishes I had to use to make that dinner or taking a lifetime to cook something on a weekday after a long day of work. I hate to admit it, but I eat out mostly because I don’t want to do what comes after…kitchen labor! I checked my spending and I literally waste $400 a month on eating out (this has nothing to do with my grocery budget). So, I’ve resolved to cook three times a week, making enough food for at least one day of leftovers. If I can stick to my plan, I can expect to save $4,800 just by eating in my house.
When all is said and done, I can expect to save $16,560 this year! These changes may seem small, but they have big returns. What are you doing to save money in 2016? Feel free to share.