6 personal expenses that you can eliminate (the 5 will surprise you)

You receive the salary and it disappears after two days. Where did the money go? Here we explain 6 personal expenses that you can eliminate.

Six personal expenses that you may cut. I do not have money. For many Chileans, “barely” making ends meet is a way of life that they cannot change, although they try and want to.

According to the Government, in 2016 the average labor income in Chile reached $517,540 pesos per month. The average income of men in Chile was $601,311 pesos per month and the average income of women in Chile reached $410,486 pesos per month.

We receive the salary and it disappears after two days. It is common to feel that we do not know where the money has gone. But that is precisely the question: where did the money go?

Let’s analyze, for example, the expenses of a single man in Santiago who shares an apartment in the Santiago center commune:

  • Rent: $280,000 (2 bedrooms, cellar, parking)+
  • Electricity: $15,000+
  • Water: $8,000+
  • Cable, internet, and telephone: $38,000+
  • Supermarket: $80,000+
  • Common expenses: $65,000+
  • Gas: $5,000+
  • Subtotal: $245,500 each +
  • Cell phone: $39,000 (individual expenses) +                                    
  • Total: $284,500

Assuming that this person must also pay an alimony of $300,000 thousand, we are talking about a total monthly expense of $584,000.

But if you look at this table more carefully, you will see that the item cable and telephone (excluding the internet) are unnecessary. And to this must be added a series of expenses that are a real hole in the pocket.

The good news is that reducing them will not mean a big change in your comfort or lifestyle.

But the first thing is to detect the holes through which money slips. Here are 6 personal expenses you can eliminate. The number 5 will really surprise you.

When you finish reading you will have a concrete idea of ​​how much you can save by controlling your wallet.

1. Wire

The typical pay TV or cable package has about 70 high-definition (HD) channels and 80-90 standard-definition (SD) channels.

How many of those channels do you watch regularly? You probably watch movie channels, two or three series channels, and a sports channel. Although we Chileans watch less and less open TV, you don’t need to spend money to watch the matches of the national team or your favorite club.

You have several alternatives on the Internet (an expense that we do not recommend eliminating) such as YouTube and streaming sites.

How much does the Chilean spend on cable? It allocates 36 thousand monthly on average –as of August 10, 2017, considering all the values ​​of the different national operators– in pay TV.

If you have a credit card, you can perfectly contract a service like Netflix and eliminate cable TV.

2. Cellular plan

We don’t recommend you delete your cell plan, but are you really using all the minutes and data on your plan? Do you know how much you have? How much does the Chilean spend on cell phones?

Comparing the most expensive plans of the four main cell phone companies in Chile, we discovered that the average price of the highest plan (XL or unlimited, depending on the company) is almost $32,500 per month.

The average price for the cheapest plan is just over $17,000 per month. A difference of $15,500 per month.

The cheapest plan we found is for 9,900 per month and it is possible to get a good plan for 20,000 per month. There are also prepaid plans, which can help you control your spending even more.

Therefore, we recommend that you go to a branch of your provider and ask how many minutes and data you use from your plan. For example, if you have an unlimited plan but actually use only 15GB of your data traffic, you can upgrade to a cheaper plan.

This distinction is important because you might find that you don’t actually talk that much on the phone, that is, using your minutes.

Email reports that Chileans spend up to five hours a day connected to mobile apps such as Facebook, YouTube, WhatsApp, Google, and Gmail.

If you communicate mainly through Whatsapp, a plan that gives you more data to browse the internet and use these apps is convenient for you.

3. Fast food expenses

That fast food is delicious, nobody denies it. But apart from being unhealthy, it is expensive, although it may not seem that way.

How much do Chileans spend on fast food?

LUN reports that on average Chileans spent $4,592 pesos every time they bought fast food in 2017.

And according to Adimark, Chileans eat fast food at least once a week. This represents an expense of $17,978 pesos per month.

But let’s be honest. Chances are your fast food intake is higher: up to three times a week. In this case, we are talking about $13,476 per week and $53,904 pesos per month.

However, we all know someone who eats fast food every day. In that case, consumption comes to almost $21,000 a week or $84,000 a month.

The easiest and most practical way to reduce this expense is to prepare food at home and take it to work. Another way is to buy the ingredients at the supermarket and prepare your lunch at the office.

4. The mall

How much do Chileans spend at the mall?

According to Adimark, Chilean women go to the mall once a week on average. On each visit they spend between $20,000 and $70,000, that is, they spend up to $300,000 per month for the “mall concept”.

For its part, Emol reports that men can spend between $12,990 and $49,990 on a shirt. If we consider one purchase per month and average both prices, it gives us almost $31,500 per month.

Other publications say that the average Chilean family spends $30,000 on clothing per month, a value that we will use for the purposes of our final calculation later on.

But beyond this, do you really need a new shirt or pair of shoes every month?

We all take care of our appearance. However, we recommend you think about your pocket at the end of the month so as not to fall into the temptation of buying clothes on impulse.

Buy durable items, only when you need them and with one use in mind: pants for work, for example.

5. Cigarettes and alcohol

Chile is the country that smokes the most in Latin America. Chilean smokers spend at least $30,000 on cigarettes every month.

But there is another expense that really affects your wallet: alcohol. This data will surprise you.

Economy and Business reports that each Chilean drinks 6.4 liters of alcohol per year, a figure that was revised downwards according to the note.

Since there are 1,000 grams in each liter, it means that each Chilean drinks 6,400 grams of alcohol per year.

Now, Bio Bío Chile reports that In Chile, each drink contains an average of 15.5 grams of alcohol, according to consumption customs in our country.

If we divide 6,400 by 15.5 we get 412.9. That is, on average each Chilean drinks 413 drinks a year.

And this is where things get interesting for your pocket.

According to Costodelavida.com, the average price of an alcoholic drink in a bar or club at night in Chile is $4,500.

If we multiply 413 drinks per year by $4,500 we get an annual expenses of $1,858,000! That’s why we spend a year buying alcohol in bars or clubs.

And if we divide this figure by 12, we obtain a monthly consumption of $154,875.

6. Cinema expenses

Outings to the cinema are the most frequent that are made today. But how much do Chileans spend on going to the movies?

Any day of the week is a good time to share a movie with your friends, partner, or family.

Tuesdays and Wednesdays are usually the cheapest days to go to the movies. However, paying full price for a new movie twice a month, with a companion, is $18,000 a month.

Unfortunately, the only way to reduce this expense is to not go to the movies or to go less. But since not watching movies is unrealistic, a good option is to share a Netflix account to watch series or movies on your computer.

Let’s say you skip going to the movies for a year: you’d save $216,000 that you could put to better use.

Want to know about 3 tips to save and finance your children’s higher education

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button