Recurring expenses are insidious. Companies love signing you up for subscription services as it means a consistent revenue stream by default. The burden is on the consumer to take action, but momentum and inaction usually win out and the payments keep getting made. Taking a hard look at these subscriptions and other recurring payments can be very effective in reducing annual expenses, thereby lowering your Target FI Number and leaving more money for saving and investing . Some expenses that don’t bring enough value can be eliminated. Others can be greatly reduced with a little intentionality (just get a month or two of that streaming service to binge your favorite show, no need to leave it renewing for the whole year!) However, there are some that are necessary but we can work on reducing their impact. One of my favorite hacks is switching to a low-cost cell phone plan offered by a Mobile Virtual Network Operator. MVNOs lease bandwidth on existing cell towers ins
Here’s a hack with a high percentage return. If you pay your own electricity bill, chances are your use is metered and charged by the Kilowatt hour (kWh) . A Watt (W) is measure of power, or energy per second, so a Kilowatt hour is just using 1,000 Watts of power for one hour. For example, a common household incandescent light bulb uses 60W of power. If you left this light bulb on for 3 hours a day for a year, it would use 65.7 Kilowatt hours: $$Total\ Energy = Power * Time$$ $$Total\ Energy = 60 W * {3\ h \over day} * {365\ days \over year}$$ $$Total\ Energy = {65,700\ Wh \over year} = {65.7 kWh \over year}$$ Since Thomas Edison invented the incandescent bulb in 1879, however, there have been some improvements to the technology. The latest is the LED Light Emitting Diode bulb. An LED bulb can create the same amount of light Typically measured in lumens. as an old incandescent light bulb using much less power. For example, an LED replacement for a 60W inca