4 Nonessential Bills To Pause ASAP To Avoid Financial Disaster
Written by
Caitlyn Moorhead
Edited by
Nicholas Morine
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Both essential expenses and discretionary expenses add up quickly, making the minutiae of paying your daily and monthly bills difficult to deal with, especially if you’re living paycheck to paycheck. If you don’t have enough to cover your basic cost of living, you need to reduce your nonessential spending and get a better handle on your monthly budget.
Here are four nonessential bills to pause ASAP if you need to catch up financially.
Unused Subscription Services
Streaming services, food delivery memberships and software subscriptions typically come with a monthly fee that you can pause or cancel at any time. Even a single subscription adds up over a year but can go unnoticed thanks to autopay.
For example, the standard Netflix subscription with ads costs $7.99 a month or nearly $96 per year. However, most people have more than one streaming subscription, and it’s estimated that, on average, people are spending about $61 a month for about four services, which is around $732 per year. That could be hundreds of dollars in savings money as opposed to discretionary spending.
Eating Out
Based on the most recent data from the Bureau of Labor Statistics, Americans spend roughly $3,933 per month on dining out, categorized as food away from home. This means just by eating outside of your home, you spend about $328 on a monthly average.
Some reports show that the average price per serving of a home-cooked meal was $4.31, while the average cost of eating out was $20.37. In general, thanks to tariffs and rifts in global trade, food costs are going up, so though it is essential to spend money on eating, editing now can save you from running out of money each month.
Professional Services
Consider pausing professional services that you can do yourself instead, such as house cleaning, lawn care or pet grooming. For example, homeowners can pay between $500 and $800 per year for a lawn care service. This is a great edit down for your budget when trying to catch up on your finances.
This could also include a personal trainer or even your gym membership. You can work out at home or find cheaper alternatives.
Recurring Allocations
You can temporarily adjust recurring allocations, such as 401(k) contributions and insurance, if you need some wiggle room financially. For instance, if you automatically contribute 10% of your paycheck to your 401(k), consider adjusting it to 7% for a few months to build up your savings.
Final Take To GO: Better Ways To Save
There are more ways to save in addition to pausing nonessential bills. When the economy becomes uncertain, it’s up to you to get your house in order and avoid financial disaster, as no one else can do it for you. Here are a few ways to start today:
- Use up gift cards: Dig into your wallet and look for unused gift cards. You probably have at least one unused card. You can even sell them on third-party marketplaces for up to 85 cents on the dollar.
- Get an energy audit: Cut back on your energy bills by getting a professional energy audit or doing one yourself. According to the U.S. Department of Energy, Americans waste up to $400 per year due to drafts, air leaks and outdated heating and cooling systems.
- Negotiate lower bills and interest rates: Many customers who ask for a lower interest rate on one of their credit cards succeed, so it’s at least worth trying to negotiate costs as you have more power over your money than you realize.
Josephine Nesbit contributed to the reporting for this article.
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