25 Ways to Sensibly Cut Your Budget

When you have so many financial responsibilities tugging your money in different directions, it can be hard to find any cash to spare to put toward your savings. And if you have big financial goals -- like saving for retirement -- it may feel like there’s no way you can scrounge together enough money to achieve those goals. But it’s easier than it may seem to save more, starting with some of these ways to cut your budget.

The average renter spends nearly 30% of their budget on rent, according to a report from Zillow. Because it’s such a significant expense, saving even a little bit every month can add up over time. Sometimes, getting creative can help convince your landlord to lower your rent. For instance, you may agree to a longer lease in exchange for a lower monthly payment. Landlords typically like long-term tenants, so he or she may be willing to negotiate on price. Or if your apartment comes with certain amenities, like a fitness center membership or parking space, you can see if you can swap those amenities for a rent reduction.

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If you’re serious about saving money, moving to a less expensive area or downsizing to a smaller home can potentially help you save hundreds of dollars per month. Moving is a major decision, though, so make sure you weigh the pros and cons before you start packing your bags. Also don’t forget to consider other costs, like property taxes and homeowners insurance, that could potentially increase with a new home. Before you make any big decisions, map out all your current costs as well as your future costs if you were to move. If you’d be saving a significant amount of money by moving, it might be a good decision.

The average household spends just over $100 per month on cable, according to Consumer Reports. Switch to a streaming service for your TV needs, and you could cut your bill down to a fraction of the cost. Be careful, though, that you don’t spend more on entertainment than you should. If you cut cable but sign up for half a dozen streaming services, you could end up paying just as much if not more than you were before.

Internet costs an average of around $66 per month per household in the U.S. While you may not be able to live without the internet, you may be able to lower your monthly bill by switching to a different provider. Many companies offer deals to new customers, which could lower your rate and help you save money. If you live in an area that doesn’t have multiple internet providers, there are still ways you can save. For example, consider what speed you really need. If you live alone or primarily use Wi-Fi just to surf the internet, you’ll need less than if you have several people using the internet at once to play video games or stream high-definition videos. You could inadvertently be wasting money by paying for faster internet speeds than you really need.

By adjusting your thermostat 7°-10°F for eight hours per day, you can save up to 10% on your heating and cooling bills over the year, according to the U.S. Department of Energy. Also, making sure your home is as efficient as possible can help save more money as well. Sealing air leaks in your windows and doors can save 10% to 20% on your heating and cooling bills, for example, and a leaky faucet dripping just one drip per second can waste around 1,661 gallons of water per year.

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Oftentimes, switching to a new carrier will allow you to take advantage of the deals offered to new customers, lowering your monthly costs. If you can’t find a better rate by swapping providers, you might be able to save money by sticking with your current carrier but switching to a different plan. For example, do you really need unlimited data? Could you join a family plan to bundle your service and save money? Even if you’re only able to lower your bill by a few dollars per month, every little bit counts.

Subscriptions are enticing, because it may not seem like you’re paying much each month. But if those services go unused, you could end up wasting a lot of money. In fact, thousands of Americans waste an average of $348 per year on entertainment subscriptions -- such as Netflix, Hulu, and Spotify -- according to a survey from GOBankingRates. Map out all the services you’re currently subscribing to -- whether they’re entertainment-related, magazines, monthly deliveries, etc. -- and determine which ones you really use. Cancel the rest, and immediately start saving money.

Your bills may feel like they’re set in stone each month, but in reality, you may be able to negotiate them lower. Especially when it comes to your cable, internet, and phone bills, sometimes all it takes is a phone call to save some extra cash each month. Negotiating can be intimidating, but remind yourself that companies know that keeping you happy is less expensive than bringing in a new customer. So if you’re polite, courteous, and reasonable, there’s a good chance you’ll get what you’re asking for.

The average U.S. household spends nearly $9,000 per year on childcare expenses, according to a report from Child Care Aware of America. Single parents, in particular, are burdened with hefty prices, with the average single parent spending roughly 37% of their income on childcare. If you’re a parent paying thousands per year for childcare, reducing this expense even slightly can go a long way. If you’re fortunate enough to have family nearby who are willing to help even one or two days per week, that can help lower your costs significantly. It’s also worthwhile to shop around when looking for daycares, and ask about a discount for enrolling multiple children in the childcare program.

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As of 2016, the average American shelled out approximately $1,800 per year on apparel, according to data from the U.S. Bureau of Labor Statistics. Shopping at thrift shops or outlet stores is one way to save money, but another way to get deep discounts on new items is to buy them during the off season when they’re on sale. If you know you need a new winter coat, for instance, buy it in early spring at a fraction of the price. It will take some extra planning to be able to buy your clothing months in advance, but the discounts are worth it.

The average U.S. household spends nearly $2,000 per year on fuel, according to research from the U.S. Bureau of Labor Statistics. If you spend a significant amount of time commuting to and from work every day, that can put a serious dent in your wallet. Starting a carpool with a few coworkers can help limit your driving time, as well as decrease how much you spend on fuel.

Another way to potentially reduce your vehicle-related expenses is to take public transportation whenever you can. Vehicles and their upkeep cost the average household close to $3,000 per year (which doesn’t include the $2,000 per year on fuel), according to the Bureau of Labor Statistics. Yet those who use public transportation only spend around $600 per year. Between fuel, maintenance, registration costs, and parking expenses (particularly if you live in a bigger city and have to pay for parking), driving can often be a lot more expensive than taking the bus or the train whenever possible.

All vehicles inevitably have issues arise, and some of those problems can be expensive. Dealerships are often much more expensive than your ordinary mechanic, and unless you’re servicing a part of your car that’s still under warranty, you don’t have to go to the dealership for maintenance. For everything else -- whether it’s a simple oil change or a part that needs replaced -- you’ll likely find better prices by shopping around.

Car insurance costs U.S. households an average of $1,009 per year in premiums, according to a report from the National Association of Insurance Commissioners.(pg. 7) That boils down to around $84 per month, so it’s worthwhile to see if you can find ways to cut costs. Some insurance companies offer various discounts for military members, students, educators, or federal employees, for example, and it pays to see whether you’re eligible for a reduced rate.

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Most insurance companies will offer you a good discount if you bundle more than one policy with them. If you have multiple cars, insuring them all with the same company can save you some money. Bundling your auto and home insurance can also help you save. Don’t be afraid to shop around and ask what types of discounts are available for bundling various policies, and saving even $10 or $20 per month can amount to hundreds of dollars each year.

When you refinance your loans, you take out a new loan with a lower interest rate to replace one or more of your current loans. Whether it’s a mortgage, student loans, car loans, etc., refinancing can help reduce the amount you pay in interest, thus saving you money. Refinancing can also help you get out of debt faster, because more of your money can go toward the principal of the loan rather than interest. Just be sure you read the fine print before you sign anything. Especially if you have federal student loans, you could lose certain benefits (such as an income-driven repayment plan) by refinancing with a private lender.

The average worker paying 1% in total 401(k) fees can expect to pay approximately $138,000 in fees alone over a lifetime, according to a report from the Center for American Progress. If that same worker pays just 1.3% in overall fees, however, the amount in fees paid over a lifetime jumps to around $166,000. Check the details of your plan or talk to your plan administrator to see what you’re paying in 401(k) fees. The average 401(k) charges total fees of around 1% of assets under management, according to the Center for American Progress. If your plan is charging more than that, it might be worthwhile to consider investing in an IRA with lower fees instead. Just be sure to contribute enough to your 401(k) to earn the full employer match, since free money outweighs any high fees.

Pets are part of the family, but caring for them can be expensive. Even routine vet visits can cost hundreds of dollars, and if your dog or cat needs surgery or other expensive procedures, you can expect to pay thousands out of pocket. By signing up for a veterinary discount plan, you can receive discounts on certain procedures and exams, so long as your veterinarian is part of the plan’s network. This can help you save on everything from routine visits to unexpected emergencies, potentially saving you hundreds of dollars per year.

The average U.S. household spends over $3,000 per year on eating out at restaurants, according to the Bureau of Labor Statistics. While you don’t need to cut takeout from your budget entirely, cooking at home more often can potentially help you save loads of cash. Even if you save just $20 per week, that amounts to $1,040 over a year.

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Just like with dining out, you don’t need to completely eliminate your favorite fancy coffee from your budget. But small financial adjustments -- like saving $5 per week by skipping the morning coffee occasionally -- add up significantly over time. That $5 per week will eventually turn into around $260 per year, and if you make additional minor cuts in other areas of your budget, you can double or even triple that amount without feeling like you’re making any major sacrifices.

Not only does writing down your list make it easier to remember all the items you need, but it also stops you from buying things you don’t. When you simply browse every aisle and pick up whatever looks good, you could end up spending far more than you planned. So before you hit the grocery store, write down exactly what you need -- and don’t stray from your list, no matter how tempting it may be.

Buying items in bulk tends to result in lower prices per item, so it can be a good way to save money on items you use frequently. The trick to buying in bulk, though, is to make sure you’re actually going to use as much as you buy. If you don’t actually need 20 bottles of aspirin, for example, you’ll just end up wasting money by buying more than you need. Also, some stores that sell items in bulk charge membership fees, so consider that cost as well before you sign up just for the discounted bulk items.

From cereal to soap to cold medication, generic products are typically just as effective as name brand items, but at a much lower price. Some brands of prescription drugs, in particular, are far more expensive than their generic counterparts, and you could save hundreds or even thousands of dollars by going generic. For example, a three-month supply of popular cholesterol medication Zocor costs nearly $700. Yet the generic version, Simvastatin, sells for less than $10 for a 90-day supply.

Whether it’s the grocery store, the gas station, or your favorite restaurants, many places have free loyalty programs that can help you earn discounts and save money. You may also receive emails with coupons or other rewards, and although you may only save a few dollars with each discount, the savings add up over time.

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As you’re saving all this extra money, you’ll need somewhere to put it. Stashing it in your 401(k) or IRA is always a good bet, but for short-term financial goals, you can’t beat a high-yield savings account. The best savings accounts have interest rates of around 2% or more, which is far more than the dismal fraction of a percent you’re probably earning in a standard bank savings account. You’ve worked hard to save more money, now make sure your money is working hard for you too.

Whether you’re saving for retirement, a down payment on a house, your kids’ college tuition, or all of the above, finding cash to set aside can be a challenge. However, it’s not as hard as it may seem. By taking small steps to save a little bit in several areas of your budget, you can save hundreds of dollars -- or more -- every year.

Katie Brockman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Netflix, Spotify Technology, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool has a disclosure policy.