5 Basic Budget Changes That Can Save $500 per Month

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I won't sugarcoat it: Cutting $500 out of your budget every month probably won't be easy. But putting that extra money toward paying off debt or throwing it into a savings account will certainly be worth the pain.

Here's how to carve out $500 from your monthly budget. And no, you won't have to give up your daily trips to the coffee shop.

1. Cancel your gym membership

Monthly savings: $55

I recently signed up my family for a YMCA membership so my wife and I would have a place to work out over the summer. I usually don't have this expense in my monthly budget, but I live in the South, and working out in my garage or running in the July heat isn't motivating me to stay active.

But once the fall months roll around, I'll probably cancel the membership and pocket the savings. According to GoodRx, the average gym membership costs between $40 and $70 per month, so a median savings of $55. Ditch the gym and workout at home or at a park and you'll save that money every month -- just maybe wait until the weather cools down.

2. Cut the cable cord

Monthly savings: $100

Many Americans have already cut the cable cord and replaced it with video streaming services. But if you still have cable -- which costs the average American $147 monthly -- you could save big bucks each month.

That doesn't mean you have to cut out all entertainment, though. If you ditch cable, pick up one streaming service for $25 or less. You'll still save more than $100 every month and still have plenty of shows to watch.

3. Sell your expensive car

Monthly savings: $200

According to Experian, the typical monthly payment for a new car is $735. That's a substantial sum for many Americans' budgets and likely far more than what some people should be spending.

It might not be realistic for you to eliminate car payments, but most of us can get by just fine without a new car. Trading in your expensive newer vehicle and getting a good used car is one of the easiest ways to save some cash each month.

The average used car payment is $523, which may still be high for many budgets but will save you at least $200 compared to a new car payment. The goal is to go as low as possible for your car payment while finding adequate and reliable transportation.

4. Skip one meal eating out per week

Monthly savings: $80

I stopped eating out for lunch years ago, and it saves me a ton of money each month. About 71% of Americans say they eat out at lunch three times per week, and half of those spend $20 or more.

You could do the same with eating out for dinner, but lunch can be an excellent time to cut out because it's one of those expenses that may be easier to overlook.

You'll save about $80 per month with just one fewer lunch out per week.

5. Say no to that one purchase you always splurge on

Monthly savings: $97

I intentionally made this one ambiguous because we all have something we like to splurge on each month that we know we could cut out of our budget.

A recent Empower survey found that 30% of Americans admit they splurge each month, with the most common expenses going to travel , expensive dinners, and accessories (like sunglasses, purses, and watches). Empower says cutting out just one guilty pleasure could save you $97 monthly.

If we add all the extra spending from these categories, we can cut out… $532 per month ! Of course, your personal budget may vary, but these ideas are a good starting point for trimming your budget. If you need help tracking your spending, try using a free budgeting app to monitor your spending easily.

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