3 Steps Ramit Sethi Takes To Save Hundreds per Month

When paring down a budget to save money, some might think that means eliminating anything fun — especially when there’s high-interest debt to pay off. However, entrepreneur and author of “I Will Teach You to Be Rich” Ramit Sethi insists that’s not true.

Read Next: 3 Best Ways To Prioritize Your Savings Goals

For You: 6 Things You Must Do When Your Savings Reach $50,000

In a video he posted on his Instagram, he said, “I believe in living a rich life today and living a rich life tomorrow, even if you have debt.” Sethi then explained three ways consumers can find some wiggle room in their budgets to better meet their short-term and long-term goals. These are things he said most people “won’t even miss.”

Read on to learn three ways to save and spend money like experts do.

Cancel Unwanted or Unused Subscriptions

Sethi’s first suggestion was for people to look at their subscriptions or streaming services and see if there are any they wouldn’t mind canceling — or didn’t even remember they were subscribed to.

It’s estimated that around 85% of people have at least one paid subscription that they don’t use every month. This comes out to about $32 a month, or almost $400 a year. This could be a tremendous savings that consumers can net without changing their routine at all.

Check bank and credit card statements for recurring charges during an entire month to see every subscription, then determine if there are any that can get the boot. Once you cancel any you don’t use, you can convert that cost into funds for your high-yield savings account.

Consider This: Here’s Why Gen-Z Is Embracing Frugal Living According to Brian Jung

Switch Insurance Carriers

Sethi recommended that individuals call their insurance companies (car, renters’, pet, etc.) and say, “I’m shopping around for a better rate. What can you do for me?” If the insurance company is unable to offer a better deal, switch carriers.

In other words, insurance companies don’t have loyalty programs, so you don’t gain anything from staying with an issuer for convenience. You could be taking a bigger chunk out of your monthly income than you need to.

Most consumers who switched carriers in the past five years had a median savings of $461, according to Consumer Reports. It’s a good idea to look into competitors’ rates about every six months or so to make sure you have the lowest price.

Monitor Impulse Purchases

Impulse buying sneakily adds up, whether you are shopping online or at the grocery store. Spending like this can mean dumping money unnecessarily on a DoorDash order or a cute shirt.

Americans spend about $150 in impulse purchases every month, according to Ramsey Solutions. Keeping those to a minimum can save consumers more than $1,000 a year. That’s money that could be spent on paying down your credit card debt or even put toward your utility bills each month.

These types of purchases are typically fueled by emotions. Maybe shoppers will splurge on a cookie during a bad day, or buy a magazine in a checkout line because the cashier is taking a long time. It’s important to determine the reason behind these purchases and see if there are other ways to solve that problem. Finding free or cheaper ways to fill time or cheer someone up is key to spending less on impulse.

Caitlyn Moorhead contributed to the reporting for this article.

More From GoBankingRates

Here's How Much You Need To Retire With a $100K Lifestyle 3 Investing Myths That Could Be Costing You Thousands in 2025 Two Money Tools Smart People Swear By for Financial Emergencies How to Get Guaranteed Growth On Your Money -- Without Risking Your Principal

This article originally appeared on GOBankingRates.com: 3 Steps Ramit Sethi Takes To Save Hundreds per Month

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.