Rachel Cruze: Should You Cut or Keep These 22 Expenses?

When you are trying to save money it can be challenging to determine whether something is a need or a want. Most money experts, including certified financial coach Rachel Cruze, advocate looking through all of your expenses to determine whether you can live without the item or service. If you can, then it is more of a want than a need and can likely be cut from your budget, at least on a temporary basis. 

Recently, Cruze, who is also the daughter of famed financial guru Dave Ramsey, went through a list of things that you can consider getting rid of if you are trying to save money. In “22 Expenses to Cut That You Won’t Even Miss,” the bestselling author and mom of three said there are many common purchases that are actually a waste of money. Here is her take on nearly two dozen services or products that you might want to consider eliminating from the expense column in your budget.

The average cost of a gym membership is somewhere between $50 and $100, depending on the state. Cruze said you can probably cut this expense since most people don’t use it consistently. Instead, she suggested taking advantage of free workouts like going for a walk or body-weight exercises. 

Warehouse club memberships are all the rage, but you might be surprised at how much they cost you in addition to the basic membership fees. Two of the most popular members-only warehouses, Sam’s Club and Costco, will cost you $50 to $60 for a basic membership.

As Cruze noted, however, this fee is only beneficial if you actually use it. She also explained that some people end up spending more or buying things that go to waste at these retailers, making them even more costly. 

While reusable water bottles may be the must-have accessory of the season, Cruze doesn’t mind the cost-effectiveness and “grab and go” access of bottled water. While understanding the environmental concerns, she admitted that you can pick up “really cheap bottled water, and sometimes it’s just convenient.” A case of water (28 bottles) can cost as little as $5, depending on the brand and store.

Rental car insurance is something that Cruze doesn’t mind skipping. She explained that in most instances, you have it anyway; therefore, it is an unnecessary expense. Rental car insurance can cost around $30 to $50 per day, depending on the company. 

Paying for gift wrap is an easy no for Cruze. She advocated saving the money and doing it yourself. You might pay between $5 to $8 per item for a store to gift wrap it for you. 

Another easy way to save money is to cut unused magazine subscriptions. Cruze again said if you aren’t using it, there is no need to keep spending money on it. These unused subscriptions can add up, too. A monthly magazine subscription can cost $30 or more per year. 

Auto club memberships, like AAA, are one area that Cruze is currently on the fence about when it comes to cutting expenses. She said whether they are worth the price is “up for debate” since she only recently joined AAA. A one-year membership to AAA will cost you $65 to $125 per year, depending on the coverage.

The podcaster admitted that she still hasn’t cut the cord and is currently paying over $200 a month for cable TV. However, she does think most people can probably get rid of the unnecessary expense. On average, cable TV plans are around $85 per month, but they can cost well over $200.

Cruze noted that her family only uses around two services consistently, so she said it is another easy cut. A streaming service can cost you $3 to $10 or more per month. While one service may not break the bank, a handful of them can really cut into your budget.

Late fees are something that, in most cases, are avoidable, according to the financial expert.

She said, “The more you can stay on top of things, the less you are having to pay in late fees.”

For her, this is another one that can easily be nixed to add money to your pocket each month. Late fees can cost you anywhere from $10 to $50 more each month.

The self-proclaimed “Queen of a Carry-On” is fine with not spending extra money on a checked bag.

She noted that “she can pack a carry-on for pretty much any length of time.”

She also said that if you can’t, you can find an airline that doesn’t charge for checked luggage, such as Southwest. On most airlines, a checked bag will cost you an extra $35 to $50.

Cruze said unequivocally that food delivery services are “one that you can cut.” She said if you don’t have to do it, then skip it. Food delivery services can cost an additional 15% to 30% and may have other fees ranging from $3 to $10.

One of the only items that Cruze disagreed with cutting from your budget is new books. A new book can cost $10 to $20. Avid readers living on a budget should source their local libraries for books or consider an exchange system with friends. 

While Cruze noted that they recently installed a landline phone for their kids and that the service is inexpensive, she said you can consider cutting it if you don’t use it. A landline phone service may cost around $20 per month or less if it is bundled with something else, like the internet.

Cruze is a big advocate of skipping brand-name products for their generic counterparts. In general, buying the generic version of an item will save you 20% to 25%. 

While a manicure is one luxury that Cruze doesn’t mind paying for it, she said you can cut it if necessary. Manicures can cost anywhere from $20 to $45, depending on the service.

The financial guru said some cleaning products can be overpriced, but she believes you can “get really great products that aren’t necessarily brand name and they are less expensive.”

She encouraged her listeners to do their research before buying. Most cleaning products are between $5 and $10 per item. 

The budgeter said car washes are something that you don’t need to spend money on. Instead, she suggested DIYing it with the hose and some soap. Even just getting a basic car wash will cost you around $10, a full-service detail will run you $50 to $100.

Cruze admitted that she is a “paper towel user” and isn’t getting rid of this purchase any time soon. Name-brand paper towels can cost anywhere from $20 to $30 for a 12-pack.

While admitting to not knowing much about cars, Cruze said she thinks if you have a nice car, you should get it. If you aren’t driving a luxury vehicle, you can probably get away with regular unleaded. Premium gas will cost you around 40 cents more per gallon. 

One of the areas where Cruze admitted cutting back when she needs to save money is her clothing budget. She noted that it is about needs vs. wants and that “sometimes those wants turn into needs that aren’t really needs.” According to the U.S. Bureau of Labor Statistics, the average U.S. household spent $162 per month on clothing in 2022.

Finally, Ramsey’s daughter encouraged people hoping to get their finances under control to delete the Amazon app. The convenience of buying stuff with the click of a button leads to overspending, whereas having to make a trip to the store may make you think twice about the purchase. She said that friends have saved “hundreds of dollars” by simply getting rid of the app.