If you are working from home and have pressed the pause button on commuting to the office, going to the gym, or other routine expenses, here’s how to see some savings in real-time.
How to Turn These 4 Monthly Expenses Into Savings
In this article, we’re going to show you how much money you can really save if you continue to turn your normal expenses into savings.
Here’s a real-life example: Team Clark member Nicole says she has transferred four weeks of her normal gas money into her savings.
“Because we’re no longer driving to work every day, I started putting the amount of money I would typically spend on gas in my savings account,” she says.
Nicole spends about $42 a week on gas, so that’s $168 a month that she is depositing into savings.
2. Auto Insurance
Many auto insurers are giving refunds and credits to customers during this time. If you’re getting a discount on your auto insurance, try to save the amount you would normally spend.
Of course, your level of coverage may vary, but the average cost of car insurance is $1,548 per year or $774 per six-month policy, according to the insurance comparison site The Zebra.com.
Based on those figures, if you received a 15% credit on a six-month policy, you would save $116 or $19 a month.
3. Lunch Money
The average U.S. household spends about $66 a week or $9.50 a day on eating out, according to the Bureau of Labor Statistics’ Consumer Expenditure Survey for 2018, which is the latest available.
Many of us are eating at home more often due to the coronavirus pandemic. If you choose to save the $10 you would normally spend on eating out for lunch every weekday, you could end up with $50 back in your pocket every week.
4. Gym Membership
About 45% of gym-goers pay $30 a month or less for a subscription, according to Finder.com.
If you pay the average $30 a month and decide to cancel your gym membership, you could save $360 in a year. In addition, you can maintain your fitness routine at home by trying a free fitness program during your self-quarantine. If you find a free program that works for you, it could save you money for years to come.
We don’t really know when our daily commutes, insurance rates, meals and fitness schedules will return to normal. Here’s what your savings account could look like if you dedicate those dollars you would normally spend to savings after three months.
2020 Expenses You Can Save Right Now
While you’re in self-quarantine and working from home, trying to save in even one of these areas can help you build your savings.
If you don’t already have an emergency fund, you can use this extra cash to create one. This guide can help you get started.