How I reduced my monthly expenses by over $800

Being a young big law lawyer, I was never deeply concerned about my monthly expenses, especially the recurring ones. I was too busy working crazy hours to meet billable targets and client demands, so I never fully appreciated how much money I was spending on my monthly expenses. After all, they were non-negotiables, I needed high-speed WiFi, electricity, heat, a cellphone, cable television, Apple Music, and Netflix, right?

When I initially signed up for my monthly utilities, I almost always selected the service that the company representative recommended. I remember hearing buzz words like “premium service”, “high definition”, “increased speed”, “deluxe version” etc. and caring less about the actual service and more about my idea of what I thought I deserved. What exactly does “premium service” or “deluxe version” actually mean? Honestly, who knows? As an immigrant from a small Caribbean island living the American dream in the Big Apple, I believed that I deserved all of the best that money could buy, even if it came at an extra cost.

Fast forward to 2020 and the Covid-19 pandemic, companies were laying off employees, unemployment benefit claims skyrocketed and the world’s economy slowed. Although I had no real fear of being fired or laid off, I started becoming increasingly concerned about my savings and emergency funds. Unlike the Ivy League folks that I met in law school, I had no financial cushion. There was no trust fund, no Mom or Dad, or Grandma that could “float” me some money to cover a few month’s living expenses. It abruptly dawned on me that I was basically “working to maintain”; I had enough money to get by every month and maintain my lifestyle but no real savings or emergency fund. How could I have any savings or emergency fund when I was living “at my means”. I spent every single dollar that I earned because I wanted to live “my best life” at the cost of foregoing “my best future” and my “best safety net”.

Something needed to change! But what and how? I wasn’t being extravagant! I wasn’t buying Chanel bags, Balenciaga sneakers, Hermes bracelets and taking frequent international trips? I was frugal, right? Absolutely, wrong! I was living at my means and needed to start living below my means in order to save towards my future and establish a safety net. Yes, I could afford the deluxe service, but did I need it? As a busy professional, I spent 12+ hours at the office most days and spent the weekends sleeping. I did not have the time or energy to enjoy the deluxe services that I splurged on. That’s when I decided to take a closer look at all of my monthly expenses (including my expensive 2 bedroom apartment in Brooklyn). With a few minor changes (and not so minor changes i.e. moving in the middle of a pandemic), I was able to save over $800 by simply reducing my monthly expenses.

Rent + $575

I moved from a 2 bedroom apartment in Bedstuy, Brooklyn to a 1 bedroom apartment in Crown Heights, Brooklyn. I gave up the extra bedroom that I used as a spare bedroom/office. I lost the extra room but gained a balcony, oversized windows, and $575! I also negotiated 2 weeks off my second month’s rent as a signing bonus and was able to deposit an additional $1,000 into my savings as a result (I’m working on a blog post on how to negotiate your lease renewal or new lease, stay tuned). As a result of the move, my monthly rent decreased from $2,750 to $2,175.

Verizon Fios +$135

I was paying for the high-speed internet + premium TV + a monthly fee for the Verizon router. I was rarely home and almost never had time to watch TV, so I was paying for a service that I did not use. I switched to the basic internet package for $39.95. I also bought my own router on Amazon for under $70 so I did not have to pay the rental fee of $15 + tax every month for the Verizon router. The router that I bought on Amazon works perfectly and comes with Alexa and an app that shows me which devices are connected as well as which devices are using the most wifi. Please do yourself a favor and buy your own router instead of paying Verizon $15 + tax each month. If you’re interested in checking out other routes that work well with Verizon Fios, read this article. Overall, my Verizon bill decreased from $175 to $39.95.

National Grid +$40

My new apartment covers the gas bill so I no longer have to pay a monthly National Grid bill. My National Gas bill decreased from an average of $40 per month to $0 per month.

T-Mobile +$10

I switch from T-Mobile One (it’s called Magenta now) which costs $60 per month to T-Mobile Essential which costs $50. There is no actual difference between these two services especially if you only have 1 line (which I did). If you have T-Mobile and want to compare the different plans you can do so here. Initially, I just signed up for the T-Mobile One plan and never considered switching to their cheaper plan until I took a closer look at my monthly expenses. As a result of the switch, my T-Mobile bill decreased from $60 to $50.

Bank Fees +$24.95

At some point, I foolishly assumed that it would be smart to have different banks accounts for different activities. I had checkings and savings accounts at 3 different banks which amounted to $29.95 in monthly maintenance fees. This was a complete waste of money and a logistical nightmare as I was constantly transferring money between accounts to cover the fees. I decided that it was smarter to have one checking account and one free savings account. As a result, my banking fee decreased from $29.95 to $5.95.

Laundry +$40

My new apartment has an in-unit washer and dryer so I no longer have to pay to wash my clothes every week. At my old apartment, I had to load a laundry card and each washing trip would cost on average $10 each week. As a result, my monthly laundry bill decreased from $40 to $0.

Overall, I was able to reduce my monthly expenses by over $800 per month by making changes to my lifestyle. With my new savings, I am able to start building an emergency fund, invest, and better manage my finances. All it took was a closer examination of my monthly bills. I guarantee you that if you took a closer look at your monthly expenses you’ll find that there are services that you pay for but don’t necessarily use or even need. All it takes is a closer look!!