If you’re like me, finding ways to manage your money has always been a challenge. Have you ever asked yourself one of the following questions:
- Where does all my hard-earned money go?
- I want to start saving or investing my money but where can I find the excess cash?
- How in the world will I pay off my student loans?
- How in the world will I pay off my credit card debt?
This is exactly why I created the CUT 3 FOR 3 CHALLENEGE, to take control of my finances and take control of my life.
What is the CUT 3 FOR 3 CHALLENGE?
The CUT 3 FOR 3 CHALLENGE is a simple way to CUT 3 monthly expenses each month for 3 months.
The money you cut goes towards the below financial activities to better your financial well-being:
- Starting an emergency fund
- Paying off debt
- Investing for your future
Everything in life seems like it is a necessity, but let me tell you..it is NOT! By cutting expenses and using your money to pay off debt or invest for your future can lead to a happier, healthier life.
After starting the CUT 3 FOR 3 CHALLENGE I have obviously noticed a difference in my finances, but I have also noticed:
- My time is better spent doing more productive activities
- I’m living a happier, healthier life
- My stress levels have lowered substantially
So, let me ask you…
What are the first three items you will cut from your monthly expenses?
After 3 months I have cut out the below expenses and now save over $925 per month. It might sound impossible but once you look at your monthly expenses and where your hard-earned money is actually being spent, you won’t believe what is possible!
Here is the breakdown of my month-by-month eliminated expenses, and I’ll also share with you how you can better spend your time and money!
Month 1:
- Spotify – $9.99 / month
- Amazon Services:
- Amazon Prime – $8.25 / month
- Audible – $14.95 / month
- Bottled Water – $12 / month
Month 1 Total Saved: $45.19
Easy expenses. For month 1 I recommend easy expenses to train the mind that this is not that difficult. I simply went to Spotify and Amazon and cancelled my subscriptions. Next time I was at the grocery store, I opted out of the bottled water:
- Spotify – 9.99 / month
- Cancelling Spotify was quick and easy. There’s a quick $10/month
- What I do instead: Pandora, Podcasts, 8tracks
- Amazon Prime – $8.25 / month
- $8.25 / month for 2 day shipping? C’mon
- What I do instead: Plan ahead.
- Amazon Audible
- One audio book for almost $15 / month is not that great of deal
- What I do instead: Podcasts have plenty of free knowledge!
- Bottled water – $12
- 24 packs are about $4. So when you buy 3 packs a month it starts to add up.
- What I do instead: Tap water. It is simple and free. If you need filtered water then buy a filter for $10
Month 2:
- Dry Cleaning – $20 / month
- Gym Membership – $50 / month
- Buying Coffee – $60 / month
Month 1 & 2 Total Saved: $175.19
Intermediate expenses. Now that your brain has developed the habit of cutting expenses, let’s start to remove more challenging expenses:
- Dry cleaning – $20
- 10 shirts, twice a month, for a dollar each. It adds up.
- What I do instead: I will buy shirts that are non-iron and simply wash and dry at my apartment.
- Gym membership – $50
- Gym memberships generally range from $40-$80 so I played it safe on the lower side of this range
- What I do instead: There are plenty of no-weight workouts. I enjoy going for runs, biking, and doing push ups & sit ups to get my weekly exercise.
- Buying Coffee – $60
- Coffee at your local coffee shop will be around $2.
- What I do instead: Most employers offer free coffee at the office. I will either drink the free coffee or go for a walk to give me energy.
Month 3:
- Cable – $150 / month
- Limited Dining Out – $420 / month
- Limited Bars/Alcohol – $180 / month
Most challenging expenses. You have made it this far. For me, these expenses were the hardest for me to cut out of my life.
- Cable -$150
- My last cable bill was just over $170. On average, it is closer to $150 per month. I have two cable boxes and two DVRs. This is Comcast literally taking $170 out of my wallet
- What I do instead: I like to spend my old TV time hanging out with friends & family, enhancing my financial literacy, reading, or watching Netflix if I really need to watch something!
- Eating Out – $420
This number will extremely vary depending on how often you go out to eat.
- Breakfast & Lunch:
- I used to buy a breakfast sandwich (about $5) and lunch (about $10) at work about 3-4x a week
- Total savings = $15 per day x 3 days a week x 4 weeks in a month = $180
- Dinner:
- My girlfriend and I used to eat out twice a week and spend about $30 each time.
- Total savings: $30 x 2 days a week x 4 weeks in a month = $240
- My girlfriend and I used to eat out twice a week and spend about $30 each time.
- What I do instead:
- Breakfast: I will make eggs and have a greek yogurt
- Lunch: I will generally make a turkey and cheese sandwich or eat leftovers from the night before
- Dinner: My girlfriend and I will go to Trader Joe’s, buy $10 worth of ingredients and prepare a meal.
- Go to the bars one night a week – $180
- Each evening out is different depending on what you do. A typical Friday or Saturday night for me is the below:
- Casual craft beers before going out – $10
- Cab to the bar – $15 (to and from)
- This is a general average but could be much more if you think worst case scenario:
- Cab to friends house: $8
- Cab to bar: $8
- Cab home: $8
- This is a general average but could be much more if you think worst case scenario:
- 3 drinks – $20
- Again, this could be a lot worst as well but I took a general average. 3 drinks at $6 a piece plus a couple bucks for a tip
- What I do instead:
- Movie nights
- Game night
- Potlucks
- Read a book
- Biking
- Running
- Each evening out is different depending on what you do. A typical Friday or Saturday night for me is the below:
Month 1, 2, & 3 Total Saved: $925.19 per month
That is over $11,100 per year of unnecessary expenses!
I was spending every month on luxuries. Now, this extra $925.19 per month will go towards paying down debt and investing to provide a better financial future! In three months you can take control of your money and start living a happier, healthier life. All while planning for your financial future! I hope this helps you understand that there are clever ways for you to trim your expenses and start saving some serious cash!
I would like for you to start thinking about the CUT 3 FOR 3 CHALLENGE and what 9 items your will cut from your monthly expenses. Please feel free to add yours in the comment section below!
Keep hackin’,
Chad
photo by: TaxRebate.org.uk
millennial money hack 