If you want to build wealth, getting as much income or "inflow" is pretty dang important. But, that doesn't mean much if your "outflows" match or are close to your amount of inflow. When building wealth, I figure it's pretty important to focus on the money that comes out of your bank account as well as the money that comes in.
The first thing I'm trying to cut out of my finances are dumb bank fees. Right now, my checking account has a monthly fee of $14.95. That's just so I can have unlimited transactions. Before I switched to unlimited transactions, I had a plan where I had 5 free transactions and then a dollar per transaction after. It's a little ridiculous that I have to pay anything to use my own money! That's why I plan to switch from my current brick and mortar bank to an online.
The bank that I plan to switch is amazing that I'm wondering why I didn't move to them sooner. Not only do they have no fees for their checking account, they actually pay interest on any balance that you may have! Just to clarify, I'm not talking about a savings account, I'm talking about a checking account that pays you interest! That's insanely awesome!
The only down side to it being an online bank is that they don't have a physical branch for me to go to. Luckily though, they use another banks ABMs so that I can't withdraw money plus they have photo check depositing through their app on smart phones. If you're paying a ton in bank fees, and you're like me who barely if ever goes physically to their bank, then you should check to see what online banks you have access to.
If you're Canadian like I am, the online bank I'm switching to is Tangerine! Give it a look and see if it's for you.
Right now, there aren't too many costs that I can reduce. The only one that I'm currently looking to reduce is my cell phone bill.
With my current plan, and the fact that the phone is being financed, I feel like I pay waaaaay too much monthly. Also I hear that plans suck in Canada compared to other places in the world? That I'm not so sure about. It's not anything I can really do about anyways.
Unfortunately, I'm on a family plan with family but pay for the bill myself. I'm stuck with it for a while at the very least. If I wanted to pay off the phone, I would have to pay off the rest of the amount that's left to be financed and then a fee on top of that to cancel the phone. I plan to do it once the total lump sum is a lot smaller and more doable. Once I do that, I'm going to switch over to a much cheaper plan with a different provider.
Make sure to look at your own plan and think if you're paying too much yourself! Do you have more data than you actually need? I certainly do. I plan to switch from 1GB data plan to 500MB since I don't even come close at the end of the month to 500MB of data used.
Do you really use your phone to talk? I don't know about you, but for me, I barely use my phone to talk anymore. I either just text of use some sort of messaging app. So there's another way to reduce the bill! I play to get 200 minute talk time to reduce the monthly cost of the plan further.
Try taking the time to sort out your own finances. Are you paying needless fees too like I am? Are there any potential costs that you can cut down on? Remember, the bigger your cash inflows the better, but that doesn't mean much when your outflow is nearly as much as your inflows.