Identifying your unnecessary expenses

There are so many ways to save money. It’s almost an infinite topic. What works for one person or household may not work for the next, but there are so many options, you shouldn’t have too much trouble finding the ones that work for you. The main trick is: determining which expenses are unnecessary.

Expenses you don’t need

You’ll never catch me arguing that you should cut out every single expense that’s not a matter of health or well-being. I think for mental health, sometimes we need little treats. But once you’ve identified and cut out the majority of unnecessary expenses, you can make thoughtful decisions about which “treats” you’re going to allow yourself, and how often. I leave that to you. This is a list of expenses that aren’t typically necessary, that maybe you haven’t thought of.

Magazines and other types of subscriptions.
Cable or satellite TV.
Netflix and similar accounts.
Buying books and DVDs you can borrow from friends or libraries.
Satellite radio.
Expensive car insurance – usually, the very cheapest you can find will do just fine.
Expensive health insurance. If you pay for your own, shop around and do some serious homework to get the best coverage for your buck.
Expensive cars. Maybe you don’t need a car at all. What about bicycles or public transportation?
Convenience foods. Starbucks and so on.
Expensive hair salon visits. Some people are able to cut their own hair and keep it looking good. Many others can get good results with an inexpensive barber or salon. Now, cheap haircare can be a false economy when the cuts don’t last nearly as long as expensive ones, so average out what you’re paying over, say, a year to get a good idea how cheaply you can keep your hair looking good. (Just don’t assume you need to spend a certain amount to get the look you want.)
New clothes, shoes or accessories whenever fashions change.
A new cell phone whenever something ooooh-aaaah comes out.
Mass media – video games, DVDs, MP3s. There’s so much available for free or extremely cheap online.