If you were hoping for a list of small tweaks you could make in your spending to save $10,000 a year, sorry.
The reality is that $10,000 is a lot of money. And saving big money usually means making big changes in the areas where we spend the most, such as:
- Housing.
- Transportation.
- Food.
Many people balk at chopping these basic expenses, notes Vicki Robin, a founder of the simple-living movement and co-author of the landmark book "Your Money or Your Life," first published in 1992 and recently reissued in a new edition.
But those willing to entertain alternatives often find they can cut their expenses dramatically. Surveys of those who tried the nine-step "Your Money or Your Life" program -- which teaches people how to achieve financial independence by reordering their spending priorities -- found that participants trimmed their spending, on average, by 25%, Robin said.
The following are ways people have found to substantially reduce their costs to live, move and eat. Perhaps some will inspire you.
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Saving on shelter
On average, one-third of the money Americans spend goes to housing costs. Trimming that bill can reap significant savings. Some ideas:Rent for less. Smart Spending blogger Donna Freedman gets reduced rent in exchange for managing a small apartment complex. Others alternate stays in short-term or inexpensive rentals with housesitting or caretaking gigs.
Patricia Walker, 64, typically gets paid $5 to $12 a day to housesit in the Mexican retiree mecca of Ajijic. That's more than enough to pay the $160 monthly rent on a tiny casita she uses between housesitting gigs.
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"This is an area where there are a lot of wealthy Americans and Canadians, and when they travel they don't want to leave their homes alone," said Walker, a former Californian who blogs about her life in Mexico. "Right now I'm getting paid to live in a mansion, with a maid three days a week and a gardener, and they pay for everything."
Walker said she finds her housesitting jobs through word of mouth. People looking for longer-term stints can subscribe to The Caretaker Gazette for $29.95 a year.
Move. Downsizing to a smaller house or a less-expensive area can dramatically improve your financial prospects. Anne Crawford, 49, sold her home in Northern California after two decades there and paid $93,000 cash for a small house in her hometown of Omaha, Neb. The move not only freed her of a mortgage but allowed her to pay off her other debts and supplement her savings.
- Tell us: How are you cutting your spending?
Share. Having roommates may feel like something you should outgrow, but plenty of people decide the savings more than make up for the loss of privacy. For years, Robin and a crew of roommates shared a large Seattle home that also served as headquarters for her New Road Map Foundation.
More recently, a family that Robin knows decided to offer a room to someone who provided both part-time child care and lawn care. That arrangement essentially turned unused space into a big savings for the family's budget.
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