Forget $5 Coffees. Here's How to Save Big Money and Slash Your Debt
- Saving money by canceling your daily $5 coffee isn’t really the best way to get out of debt fast.
- You can get faster results by saving big money on costs like housing and auto loan payments.
- The cost-cutting ideas in this article could help you save as much as $5,000-$13,000 per year.
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Many personal finance gurus tell you to save money on small things, like giving up a $5 coffee everyday. It’s true that if you save $5 per day, you save about $150 per month, and $1,825 per year. But many people struggle to give up the simple pleasures of life. You shouldn’t have to go without treating yourself to a morning pick-me-up. If you really want to save money and get out of debt faster, think bigger than a $5 coffee.
What if you could save more money on bigger things, like housing, car payments, and expensive hobbies or habits? Instead of saving a few dollars by giving up coffee, think about bigger moves that could help you save hundreds of dollars or more per month.
If you’re having financial trouble and looking for debt relief, think big about saving money. Cutting out coffee is like using a scalpel to solve your debt problem—when what you need is a sledgehammer.
Here are a few ideas putting a big dent in your debts.
1. Get a Roommate to Save Money on Rent
According to Apartments.com, as of June 2025 the average rent in America is $1,628 per month. Moving to a lower-cost neighborhood, city, or town is not always an option. You might want or need to keep living where you are so you can be close to job opportunities.
But what if you could find a roommate to save on rent? Cutting that national average rent in half would save you an average of $814 per month, or $9,768 per year. Having a roommate could also help you save on other parts of your budget, like home heating and cooling, internet, and maybe even furniture or groceries.
2. Move in with Family to Save Money on Housing
If you live close enough to your parents, siblings, or other relatives and are up for living together, another great way to save money on housing is to form a multigenerational household. This is a popular way for people to live. The latest survey data from the Pew Research Center found that 18% of Americans are now living in multigenerational households. Living with parents or older relatives is pretty common among younger adults—31% of people aged 25-29 and 19% of people aged 30-34 live in multigenerational homes.
If you want to move back in with Mom and Dad, you probably shouldn’t plan on living there rent-free. But what if your family could give you a discount on rent? Let’s assume you were paying the national average rent of $1,628, and your family lets you live at home for only $500 per month. That would save you $1,128 per month, or $13,536 per year.
3. Trade in Your Car for a More Affordable Older Model
Cars have gotten much more expensive in the years since the pandemic. If you’re feeling a pinch with your monthly auto loan payment, consider trading in your car for a cheaper, used vehicle. This is especially useful if you’re driving a new car.
According to Kelley Blue Book, as of May 2025, the average new car transaction price was $48,799, and the average used car listing price was $25,470. Your exact monthly savings depend on how much you still owe on your current car’s auto loan, and your car’s trade-in value. But based on the difference in average prices, switching from a new car to a used car could help you save $23,329. Assuming a 7% auto loan APR for 60 months and a $10,000 down payment, this would reduce your car payment by $462 per month.
4. Stop Expensive Habits Like Smoking, Drinking, or Gambling
If you’re trying to get out of debt faster, you shouldn’t have to give up every last little thing that helps you feel joy and peace. Feeling deprived of small everyday pleasures like coffee can cause people to lose motivation to pay off debt. But some habits are more costly than others.
If you smoke, drink, or gamble and you’re currently struggling with credit card debt, consider taking a hard look at how much your habits are costing you. Don’t let fun but expensive habits hold you back from your financial goals—especially if those habits threaten your health or your family’s well-being.
For example, the average price of a pack of cigarettes in America is $8.39. If you smoke one pack per day, that habit is costing you $3,062 per year ($255 per month).
Have you crunched the numbers on how drinking alcohol affects your wallet? As of 2023, the average American household spent $637 per year ($53 per month) on alcohol. That might not seem like much. But if you’re going to bars regularly and having fun nights out with friends, you could easily spend a lot more than the national average.
Americans are also gambling more than ever before. Legal gaming revenue has been climbing in the past few years, and gambling is now legal in 47 states. As of 2024, the average American spent about $1,441 on casino gambling—or about $120 per month. But just like with smoking and alcohol, some people have a problematic relationship with gambling. If you spend more money than you would like to at casinos or in online betting apps, it might be time to cut back. Your bank account will thank you.
You don’t have to give up all your favorite pastimes and expensive habits overnight, and you don’t have to quit forever. But what if you could take a month off and see how much you can save?
See How Much You Can Save
If you were to try all of the ideas on this list, here’s how much money you could save—and how much momentum you could build if you keep saving money over time:
| Way to save | Savings per month | Savings in 1 year | Savings in 2 years | Savings in 3 years |
|---|---|---|---|---|
| Getting a roommate | $814 | $9,768 | $19,536 | $29,304 |
| Moving in with family | $1,128 | $13,536 | $27,072 | $40,608 |
| Switch to lower-cost car payment | $462 | $5,544 | $11,088 | $16,632 |
| Quit smoking | $255 | $3,060 | $6,120 | $9,180 |
| Quit drinking | $53 | $636 | $1,272 | $1,908 |
| Quit gambling | $120 | $1,440 | $2,880 | $4,320 |
Do any of those amounts match your total amount of debt? Just by making a few big choices about your money and your life instead of one small thing like “no more $5 coffee,” you can pay off big chunks of debt faster.
Author Information
Written by
Ben Gran
Ben Gran is a personal finance writer with years of experience in banking, investing and financial services. A graduate of Rice University, Ben has written financial education content for Business Insider, The Motley Fool, Forbes Advisor, Prudential, Lending Tree, fintech companies, and regional banks like First Horizon.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
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Two popular and speedy debt repayment approaches are debt snowball and debt avalanche.
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