4 Ways to Cut Expenses
Let's use Broke Betty as an example. Betty needs to build fuel is cut her expenses. Betty’s core expenses include rent/mortgage, utilities, cell phone, insurance, transportation, food, and medical. She also has discretionary expenses; however, helping Betty reduce her core costs will have a positive spillover effect on the overall budget. Here are a few ways Betty can reduce expenses.
Discount programs: Large companies can leverage their buying power to benefit Betty. They can utilize established programs such as Beneplace or Access Perks or create their own deals. The key for employers is to make sure (1) the discounts help Betty with her core costs (not just discretionary wants) and (2) the discounts are true deals. Periodically test the discounts to see if they accomplish both objectives.
HSAs and wellness perks: Employers making contributions to Betty’s HSA for completing her wellness assessment is powerful. This perk helps Betty and the employer. If utilization is low, double down on marketing. Helping offset rising healthcare costs enables Betty to save more.
Subsidized child care: In 2018, the average cost of childcare in the U.S. was $914 per child per month. That’s the equivalent of $14,618 in pre-tax earnings! Childcare is among the most expensive items in Betty’s budget. Offering dependent care spending assistance plans (DCAP), at a minimum, can allow her to pay through pre-tax dollars.
List of simple savings: MintMobile recently offered a cell phone plan for $15. Cutting cable and using internet content with Roku, Amazon Firestick or Apple TV can save $50-$100 per month. Shopping auto insurance every six to 12 months ensures Betty is getting the best deal.