A recent Lending Club report shows that 63% of Americans are living paycheck to paycheck.1 There are a number of reasons outside of one's control that can factor into this, with inflation currently being the number one. Across the board, there are very few items that have not seen a price increase over the past year or so. It is easy to point fingers at what caused it (we are looking at you COVID), and who caused it (hello Government and the Fed). However, as we go into 2023, it is time to realize there is no "rescue plan" coming. The finger-pointing has to be at the one in the mirror.
Simply put - spending is out of control! Want to save a quick $100 per month or maybe more? Let's start with subscriptions! How many do you have? Let's add them up:
Netflix (Premium) - $15.49
Disney Plus (Premium) - $10.99
Peacock - (Premium) - $4.99 (Premium Plus - $9.99)
Paramount Plus (Premium) - $9.99
Amazon Prime - $11.67 - averaged over 12 mos. of $139.99 annual subscription
Apple TV - $6.99
HBO Max (No Ads) - $14.99
SiriusXM (Platinum) - $22.99/mo. or $45,98/mo. for 2 cars
Not counting taxes, you are probably in the range of $100-$125 on these services alone. How many could you rid yourself of? Add to that a regular cable or other streaming bill like YouTubeTV or Sling, and then add internet costs.
Obviously, $100 does not go as far as it did 10 years ago, or even last year for that matter. However, if you have debt, especially credit card debt where rates have increased this past year, that $100/mo. could be used to pay down that debt, or help you avoid using that credit card when having to fill up the gas tank or get a few groceries. And most importantly, alleviate you from the stress of having to wait for that next paycheck!
Much of this comes down to cash flow. To help you figure out what your cash flow looks like click on the link here: What Is My Current Cash Flow
If you have questions or need assistance, please don't hesitate to reach out to us!
1. https://ir.lendingclub.com/news/news-details/2022/One-Third-of-Consumers-Report-They-Are-Not-Currently-Saving-Any-Money/default.aspx