Where to save on your budget - part 1

I think in many times we get the general advice to quit the daily latte habit and hinting that this would lead to great success. I believe there is not a great value in cutting things you truly enjoy. Yes, maybe streamlining such costs and finding savings on them can be good. Even a latte can be perhaps even more rewarding if it is not bought every day but just sometimes. But I try to focus more on some more hidden costs I have realised I could cut or have already cut from my budget.

These are not always relevant for everyone but are meant to get you thinking along, so let's start!

Saving on energy in long-term.

Using only very energy efficient light bulbs in your home. They can be more expensive but moving on to these over several months when old ones break, leads to great savings in the long run. Depending on the sockets I use either LED or other energy efficient options. For me, it is really important as I use several plant lights with timers as in the north the days are short and my potted plants need this extra light. So I have lights that do burn 12 hours a day, every day, and it makes a huge difference if it is a 100 W bulb or a 9 W bulb which gives the same amount of light.

Also as some things tend to run on timers in my home I make sure to unplug the things I am not using to counterbalance my energy consumption. Many plugged in electronics still use a small amount of electricity when plugged in, also extension cords do use energy (so I've been told at least). So I try to make a habit of unplugging the things I am not using. I also have an electric water heater for the bathroom and I either switch it off or regulate it to minimum temperature when I am away from home travelling. If you leave for several nights it tends to be more efficient to do this. But when leaving just for a day or so, then keeping it heated compared to needing to heat it from the room temperature might be more useful. Look at the manual of your item to make sure when to unplug and when not to. 

Also, the general habit of turning off the lights and switching off TV etc when you leave a room is a great habit to cultivate on your home.

Memberships you do not actually use or get the full value out of.

A lot of companies are trying to get you to sign up to different types of monthly fees and sometimes you forget about them or perhaps feel that the hassle of ending such contract could be too much trouble. But in the end, month by month, you are spending money on these. 

For example, I travel quite a lot for my work, so I ended my monthly gym subscription which expected monthly payments every month. Instead of that, I buy 30-day memberships which is a bit more expensive, compared to a normal monthly fee with a yearly plan, or sometimes pay just for single use attendance fee. I buy the 30-day plan only when I actually have 4 weeks in a row to attend it regularly - so most months I do not buy and therefore in yearly cost I save almost 50% compared to the normal monthly memberships. So maybe you have a similar case and perhaps it is more valuable to pay a different type of contract compared to a yearly plan.

Next examples are magazine and newspaper subscriptions either digital or real paper ones. I do not say that you should not have them, but to really look at them and decide if you actually use them enough to justify the cost. If you use it seldom maybe just buy that issue? Also if the plan has flexibility use it. I have a book order plan where every month I can say if I wish to receive this concrete monthly book. And most months I cancel it, so I make sure I pay for only the ones I realistically will read. 

Also music and video streaming options. Think about it, do you use the Audible Account, Netflix, Spotify, cable plan etc. Just a few days ago I talked to a colleague who complained that the Estonian Netflix plan has a very limited selection (it does, that is why I never subscribed!). Every time she searches for something - it is not on there. So she has been paying a monthly fee for just watching House of Cards for a few weeks when it comes out, and the rest of the year it is just costing her. 

Think critically and cancel the ones you are not using.

I have some more ideas on this topic, but not to make this post too long, I will post them as part 2 another time.