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A recent PwC survey revealed that 84% of Americans are planning to cut back on spending in the upcoming months, primarily due to rising prices. Whether you’re aiming to minimize clutter or save money before the holiday season, it’s an ideal time to evaluate your essential purchases.
In a recent YouTube discussion, personal finance expert Humphrey Yang shared ten expenses he decided to eliminate from his budget. Let’s explore these items and discover alternative ways to save money effectively.
Reconsidering Airbnb Stays
Yang pointed out the increasing costs associated with Airbnb rentals, which have become comparable to hotels when factoring in cleaning fees. Additional drawbacks included one-size-fits-all rules and added complications that detract from the Airbnb experience. A better approach could be to compare hotel prices, consider flexible travel dates, or utilize loyalty points.
The Shift from Physical Books
For avid readers, collecting expensive physical books can lead to disappointment when they aren’t read. Yang shared his experience of often putting down books after just a few pages. He now prefers audiobooks and podcasts, or borrowing books from friends, which reduces clutter and saves money.
Savvy Strategies for Car Insurance
Current average monthly car insurance premiums stand at $194. Yang suggests reassessing your coverage by shopping around for better deals. After moving and driving less, he managed to reduce his premium by $40 by simply negotiating with his insurer. Explore multiple insurance providers for potential savings.
Limiting One-Time Clothing Purchases
Buying outfits for specific occasions can lead to wasted money, as these items might remain unworn after the event. Yang shared a lesson learned from an unnecessary cowboy hat purchase, advocating for a new rule: only buy if you plan to wear it multiple times. This approach can prevent unnecessary spending.
Curbing Premium TV Subscriptions
Yang discontinued his YouTube TV subscription after realizing it would cost nearly $1,000 annually for infrequent use. If you find yourself paying for multiple streaming services, consider exploring free alternatives like Tubi and Pluto TV, or selectively subscribing only to the platforms you truly enjoy.
Avoiding Unnecessary Investments
Investing is essential for building wealth, but uninformed decisions can be costly. Yang recounted his experiences with angel investments, emphasizing the importance of thoroughly researching before committing your funds. Understanding the intricacies of any investment is crucial to ensure your money is effectively working for you.
Mindful Bulk Purchases
While buying in bulk can save money, it’s essential to choose wisely. Yang noted his mistake of purchasing perishable goods like milk and eggs in bulk, which often spoiled before he could use them. Opting for non-perishables, such as canned goods and household supplies, can maximize your savings.
Being Cautious of Sales
Sales can be enticing, leading to impulse buys of items that aren’t genuinely needed. Yang advises against falling for sales unless there’s a specific item you’re already considering purchasing. This approach can prevent unnecessary expenses and help you stick to your budget.
Rethinking Video Call Subscriptions
Yang re-evaluated his need for a paid Zoom subscription, discovering he could utilize free alternatives like Microsoft Teams and Google Meet without sacrificing functionality. Before paying for premium subscriptions, review the features to determine if a free version suffices.
Understanding Extended Warranties
The extended warranty market in the U.S. reached $48.38 billion in 2024, but many consumers may find that these warranties don’t offer enough value. Yang discussed the high costs and numerous exclusions often included in these plans, suggesting that saving funds for potential repairs might be a more financially sound strategy.
