Saving money can be elusive, especially when not done with a plan in mind. We live in a society that preaches consumerism regardless of cost. This message can hold us back from reaching personal goals. It doesn’t have to be that way. In fact, there are simple ways to save money on things we do or use every day that can add up to real money over the course of a year.
It would be easy to think saving money is painful, and in some instances it is. However, actively saving money can be relatively painless, especially when you have a quantifiable number you’re trying to reach. Below are five simple and relatively painless ways to save at least $5,000 each year. The best part is that this list only scratches the surface of simple ways you can cut back.
1. Ditch the contract.
How much is your cell phone bill? Thanks in large part to our data usage, cell phone bills are up over 50 percent since 2007. It is nothing to find cell phone bills that are approaching $150 for a small to medium-sized family. Depending on your financial picture, a high cell phone bill can have a significant impact.
You don’t have to spend that much, though. Gone are the days where you have to stick with a high cost, contract-focused phone carrier. There are many cell phone options to choose from today that offer no-contract plans for as little as $50 or less per month that also include the ability to have a smartphone. By ditching your contract once it’s up, you can easily save $100 or more each month.
Approximate annual savings: $1,200
2. Forget cable.
Cord cutting, or getting rid of your high-priced cable or satellite package, has risen in popularity recently, with over 7 million homes axing cable. The reason is simple: Cable plans are expensive. They commonly have a wide array of channels most people don’t even watch in the first place. According to the NPD Group, cable television plans average $123 and are projected to hit $200 by 2020.
As with the cell phone plans mentioned previously, you don’t have to spend this much to access much of the same content. With options like Netflix, Sling TV, Hulu and others, you can simply cut your spending to $25 or less and have those funds to use on other things in your budget.
Approximate annual savings: $1,200
3. Trim your grocery bill.
We all need to eat, of course, but your grocery bill can be one of the first places to look when you need to save money. According to the Department of Agriculture, the average family of four spends between nearly $600 to $1,300 per month on food.
The last thing you want to do is sacrifice your health for cheaper food, but in most cases, you can take at least $100 per month off your food bill. You can take your lunch to work, eat leftovers and meal plan, to name just a few strategies.
Approximate annual savings: $1,200
4. Save money, a little at a time.
Saving a modest amount of money each month adds up by the end of the year. Life is busy and it can be easy for us to forget to save.
There is a simple solution to this problem — automating your saving. Most banks and credit unions allow for free automatic transfers. Make it easy and set one up. If you don’t have the funds to do it all at once, break it down in order to reach at least $100 saved each month. You can also ask your employer if they’ll deposit funds from each paycheck into a savings account.
Approximate annual savings: $1,200
5. Skip the gym.
How often do you go to the gym? If you’re like most of us, our gym membership is usually just wasted money, and that could mean throwing away an average of $60 a month.
Exercising is great, but not if you’re only giving money to the local gym. There are a variety of ways to get the same exercise for free and not leave your home, from online videos to stepping outside.
Approximate annual savings: $700
Together, all of these strategies add up to $5,000 in annual savings. If the sacrifice seems to be too much, ask yourself what you could do with an extra $5,000 or more per year.
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5 Simple Ways to Save $5,000 or More a Year originally appeared on usnews.com
