The idea behind annualizing your spending is that you calculate the annual cost of what you purchase instead of the daily cost.

We all spend a few dollars here and there each day. Maybe you regularly buy coffee on your way to work. This may cost only a few dollars, but if you add up that amount for the year you may be shocked to find out how much you are spending.

Calculate the annual cost for all the little things you spend money on and think about what you could be doing with that money instead. You could put it in a savings or investment account, save for a vacation and so much more.

Here are some examples.

Coffee & beverages

Make your coffee at home. It is much more economical to invest in a coffee maker than to buy coffee at a shop each day. Same is true for other beverages. Watch for sales at the market and stock up when the price is right.

Take out and fast food

Do you regularly order takeout or drive through the fast-food restaurant at lunch or on your way home from work?

You don’t have to eliminate this completely, but could you cut it in half? Spend a few hours on the weekend prepping your meals for the week. Having your lunches and dinners prepared and ready to go makes it easier to grab it and go on your way out the door in the morning.

In the evening you don’t have to go home and figure out what to have for dinner. If your meals are already prepped it will save you time and money. You will also be less tempted to drive through the fast-food restaurant or order takeout. Not only will this save money, but it is better for you. Most fast food is loaded with fat, sugar, preservatives and other unhealthy ingredients.

Kids lunches

School lunches can be expensive. Packing your kids lunches can save money. Take the money you would normally spend on their lunch and start a savings or investment account for them or teach them how to save their money using the jar method. One jar for savings and one for spending. When they see their money grow, they may choose to pack more often. Get them involved in making their lunch. Teach them how to shop for the food, make healthy choices and how to prepare the food. Knowing how to do these things prepares them for a successful, independent life.

Delivery charges

Stop paying for delivery services. Not only are you paying the delivery fee, but you are also tipping the delivery driver. Instead, pick it up yourself. Work it into your errand schedule so you are not making an extra trip.

Daily newspaper & magazines

Whether you pay to have the newspaper delivered or pay for the online version you can eliminate that cost by using your local library and Newsbank. Newsbank is a website that offers not only newspapers but a huge database of other information as well. Most public libraries provide online access to Newsbank. All you need is a library card. Cancelling your newspaper subscription can save you hundreds of dollars a year. What is Newsbank & How Can it Save you Money

Audio & eBooks, movies & TV

You can listen to audiobooks, read eBooks, watch TV and movies and listen to music for free. Using your library card you can use apps like Hoopla, Kanopy, Libby and Flipster to borrow content.

Libby lets you to borrow eBooks, audiobooks, magazines and newspapers.

Hoopla offers video streaming, audiobooks, comics, eBooks, newspapers, music and more.

Kanopy has an extensive collection of movies, documentaries, foreign films, classic films and other content.

Flipster provides access to digital magazines including National Geographic, Conde Nast, Meredith, Bloomberg and others.

All of the apps are free. You can use them on your smartphone, tablet, computer and streaming devices. See my article on utilizing your public library. Utilizing Your Public Library

Retail subscription services

These can include Amazon Prime, Walmart, Target and other services you pay an annual fee for. If you don’t use the service enough to justify the cost you may be losing money.

Streaming services

Review streaming services and eliminate what you are not using. Often you sign up for a free trial and if you don’t cancel, the trial turns into a subscription. With so many free streaming alternatives you may not need to pay for any. I pay nothing for TV and am saving thousands of dollars a year since I cut the cable and canceled the paid streaming services. Cut the Cable & Paid Streaming Services & Watch TV for Free

Dry cleaning

While dry cleaning may be convenient it can cost a lot of money depending on how often you take items to the cleaner. When making a purchase read the label. If it says dry clean only possibly consider another item.
Smartphone apps

With so many free options why pay for an app? Unless it is something specific that has no free alternative don’t spend money on apps.

Pet grooming

If you pay to have your pet washed and groomed, consider doing this yourself at home. A trip to the groomer can cost $45 to $75 or more.

Paper towels & napkins

Instead of using paper towels to wipe up every mess, buy cloth towels at the dollar store and use them instead. Then just toss them in the laundry. Save the paper towels for messes that need to go into the garbage right away. And use cloth napkins at dinner, those can be laundered as well. Reducing paper waste is also good for the environment.

Home cleaners

Make your own home cleaners and save a ton. To make window cleaner just mix 1/4 cup white vinegar with a 1/2 teaspoon of liquid dish soap. Add two cups of water and mix it up. Then just put it in a spray bottle. Instead of expensive kitchen and bath cleaners you can use dish soap mixed with water for things like wiping down counters and appliances, cleaning sinks, tubs and toilets and scrubbing the floor. Vinegar and baking soda are also great alternatives to expensive cleaners.

Expensive cell service

With so much competition you can easily find a low-cost plan. I switched to Mint Mobile several years ago and am saving a ton of money. Mint Mobile

Bank fees

Don’t pay bank fees. Instead ask your bank about their free accounts or check with the local credit union.

Credit card fees

If you are being charged an annual fee for your credit card, shop around for a card that does not charge a fee. With so many cards and companies to choose from you can easily find a fee free alternative. Choose a low interest rate card that lets you earn points. And don’t pay interest, pay off your credit card in full each month. Use it as a tool to earn cash back rewards and improve your credit score.

These are just some ideas. Look at the things you spend money on each day and decide what changes you can make to save more money.