Most Americans know household expenses quickly add up, and they seek ways to cut excessive budget expenses. This can be hard sometimes, especially if you’re already cutting costs and feel fatigued at the thought of giving up the few purchases that bring you joy.
Read More: Warren Buffett — 10 Things Poor People Waste Money On
For You: 9 Things You Must Do To Grow Your Wealth in 2025
The good news is there are certain household expenses you can cut now that can save you a significant amount of money and largely go unnoticed from your daily radar.
Cutting out these seven household expenses will save you $5,466 per year.
Brand-Name Products
- Savings per year: $600
From groceries to health and wellness items, brand-name products carry a lot of heft in households. Tanya Peterson, consumer finance expert and vice president at Achieve, recommends reconsidering purchasing brand-name products. Swap out generic names instead or inexpensive in-house brands.
“Store-brand groceries can cost at least 10% less than brand names,” Peterson said. “This means a family who spends $500 a month on brand-name groceries could save $50 every month.”
Find Out: 6 Things the Middle Class Should Sell To Build Their Savings
Read Next: 5 ‘Necessities’ Frugal People Don’t Buy, According to Frugal Living Expert Austin Williams
Gym Membership
- Savings per year: Over $600
If you have a gym membership and don’t use it regularly, you can cancel it for extra savings each year.
“During the COVID-19 pandemic, many people found they like exercising outside — particularly as nicer weather is upon us — or at home with their own equipment and/or use of DVDs or online exercise programs,” Peterson said.
Check Out: 5 Unnecessary Bills You Should Stop Paying in 2024
Unlimited Smartphone Data
- Savings per year: $540
Your unlimited data plan may be costing you more money than you realize each month.
Money-saving expert Andrea Woroch recommended looking at your actual usage.
Households could switch to lower-tiered plans for big savings. Or, they might move to an online-only carrier, like Mint Mobile, which charges $15 a month for talk, text and data if you buy 12 months of service in bulk.
Households that make this change have the ability to save around $540 each year.
Video Streaming Services
- Savings per year: $114
According to Woroch, the average household dishes out $114 on video streaming services (Netflix, Hulu, HBO Max, and more) each month.
Cutting back on video streaming bills doesn’t mean you need to do without entertainment. Woroch said you might get free streaming service through your wireless provider (like Sprint or T-Mobile), or you can access free video through your local library’s digital platform.
Bank Fees
- Savings per year: Over $192
While this is not necessarily a household expense, some banks charge a monthly fee if you don’t maintain a certain minimum balance.
Woroch recommended shopping around to see whether there are other banks with no minimum requirements at all.
“Open an account with an online bank that offers free checking accounts with no minimum balance necessary,” Woroch said.
For You: 6 Clothing Items Frugal People Keep for Many Years
Attic Insulation
- Savings per year: $420
Want to reduce heating costs in your home? Peterson recommended hiring a reputable insulation company to spray appropriate insulation.
You will need to pay for the insulation spray, but Peterson said the $420 represents potential annual savings if you insulate a 1,000-square-foot attic that was not previously insulated.
Takeout
- Savings per year: $3,000
Arguably one of the biggest household expenses, whether you have a family or are single, is takeout food. You can save big by not ordering in and cooking for yourself instead.
“It’s not hard for a family to spend $60 a week on takeout,” Peterson said. “Save that and you’ll save more than $3,000 in one year. Avoid spending just $20 a week amounts to more than $1,000 in just a year.”
More From GOBankingRates
- Here's the Minimum Salary Required To Be Considered Upper-Middle Class in 2025
- 3 Things You Must Do When Your Savings Reach $50,000
- How Much Would I Save if I Cut My Credit Card Interest to Low APR for a Year?
- 4 Low-Risk Ways To Build Your Savings in 2025
This article originally appeared on GOBankingRates.com: Cutting Out These 7 Expenses Can Save You $5,400 Per Year
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
