How American Households Can Save Up To $11,402 Without Cutting Daily Luxuries
Written by
Josephine Nesbit
Edited by
Nicholas Morine
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You don’t have to give up your daily Starbucks trip to save money. According to research from online savings platform Raisin, American households can save up to $11,402 without cutting their daily luxuries.
How can you save? Raisin explained that one of the easiest ways to save money is by cutting out unused subscriptions like gym memberships and streaming services, which can save about $414 per household, per year.
Top Areas of Potential Financial Waste in America
Here are some areas where your money may be wasted, according to Raisin:
- Bank account charges: $300 (per adult each year).
- ATM fees: $67
- Credit card debt: $501
- Low-yield savings accounts: $1,021
- Unused streaming subscriptions: $153
- Food waste: $610
- Delivery service charges: $655
- Tobacco: $406
- Alcohol: $1,089
Typical financial advice usually tells people to avoid takeout, coffee, evenings out and other unessential expenses, “but the best move is mindfulness over austerity,” per Raisin’s report.
Trim the Excess Spending and Reset Your ‘Money Story’: Experts
Raisin U.S. president Ben McLaughlin recommended that people “trim the fat” from their spending, rather than eliminate it completely.
“When we set unrealistic expectations for saving, we get discouraged and can go completely off track when we fail,” McLaughlin said. “Instead of saying, ‘I’m never going to go to a coffee shop or eat at a restaurant ever again,’ take stock of what small luxuries are truly important to you and enjoy them. Live your life. And make smarter choices in other areas.”
Recently, Americans have made big changes to their spending habits. A Wells Fargo survey found that most Americans have had to make major adjustments due to the economy. The inaugural Wells Fargo Money Study found that 67% of Americans say they’ve had to cut back on spending, and 35% have dipped into savings and investments.
According to Raisin, one way consumers can save without depriving themselves of their daily luxuries is to cut out unnecessary finance fees, such as ATM fees, as well as bank account fees like maintenance charges, withdrawal and transfer fees, and overdraft fees. Another option is to move your savings to a high-yield savings account. Raisin said Americans miss out on $1,021 per person by keeping their money in a low-interest account.
Michael Liersch, head of advice and planning for Wells Fargo, said “resetting your money story” can be overwhelming because it might feel like you need to make big changes all at once.
“The fact is that it’s small, incremental changes — like being more intentional about how you spend just on one thing, or saving even seemingly small dollar amounts like $50 or $100 per month — that tend to make sustainable positive steps toward accomplishing your goals,” Liersch explained.
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