A Roth IRA is one of the most powerful retirement tools available. You contribute after-tax dollars, and your growth and withdrawals in retirement are tax-free, assuming you follow the rules. For many people under the income limits, the real obstacle isn’t eligibility. It’s cash flow. The good news is that with a little scrutiny, most of us can uncover thousands of dollars each year to put toward a Roth. Even if you don’t reach the maximum contribution, every extra dollar makes your future self’s life easier.
The goal is not to live like a monk. It is to be intentional. Because let’s be honest: the system around us is built to encourage spending without thought. Subscriptions renew in the background, delivery apps make takeout effortless, and phone companies upsell unlimited data you may never use. This is a call to take back control.
Subscriptions and Apps
We live in a subscription economy. Streaming, fitness, software, food boxes, apps—everything is designed to bill you monthly. According to surveys, the average American spends about $924[1] a year on subscriptions, and a good portion of that goes to services people rarely or never use. Canceling just two unused subscriptions at $15 each saves $360 a year. Trim one or two apps and you may free up another hundred dollars without missing a thing.
Credit Card Interest
Not everyone carries a balance, but if you do, interest is a silent drain. A $3,000 balance at a 20 percent APR costs about $600 a year. Paying it down not only improves your finances, it also creates space to redirect that money into a Roth IRA.
Dining Out and Delivery
This category often delivers the largest savings. The average American spends over $3,000[2] a year dining out. Even cutting back by one restaurant meal a week, swapping in a home-cooked option, saves about $780 annually. Reducing delivery orders multiplies the effect since fees and tips stack on top of food prices.
Small adjustments also add up. Replacing one can of sparkling water or soda per day with tap water saves around $300 a year. Maybe you don’t drink coffee, but you drink a lot of sparkling water. The principle is the same: examine your own habits and decide what you truly value.
Phone Plans and Utilities
Many people pay for unlimited data they don’t use. The average phone bill is over $120[3] a month. Switching to a plan that matches actual usage could cut $30 to $40 each month, or about $400 to $500 a year. The same mindset applies to home internet or streaming bundles.
Impulse Spending
Amazon one-click orders, late-night convenience runs, Target trips “just for one item” that become five. Small purchases add up quickly. If your discretionary spending runs $200 a month, trimming just 10 percent saves $240 annually.
Putting It All Together
Here’s what those adjustments can look like over a year:
| Category | Low Estimate | High Estimate |
| Subscriptions and apps | $150 – $300 | $400 – $700 |
| Credit card interest | $0 | $600 |
| Dining and delivery | $500 – $1,000 | $1,500 – $3,000 |
| Phone and Utilities | $200 – $400 | $400 – $600 |
| Impulse spending | $100 – $300 | $300 – $700 |
| Total potential | ~$950 – $2,000 | ~$3,100 – $5,600 |
A Realistic Approach
Not every category will apply to you. Maybe you already trimmed subscriptions or don’t carry credit card debt. That’s fine. The point is not to cut everything but to identify the areas that matter for you. Even partial savings of $2,000 to $3,000 a year make a meaningful difference for your retirement security.
The system is designed to pull money from your pocket in small, painless bites. It counts on you not noticing. By taking a closer look at where your money flows, you can push back. Maxing out a Roth IRA isn’t about deprivation. It is about making a few conscious choices today that compound into freedom tomorrow. Start with one category, redirect the savings into your Roth, and watch the balance grow year after year.
Did You Know?
Your employer sponsors this financial wellness benefit from Francis. The benefit connects you with down-to-earth financial planners who educate and advise on any money matters…without the sales pitch. We are exclusively engaged by employers like yours and have no investment products to sell, so you can feel confident that you will always receive objective advice.
Your financial planner will help you set priorities and achieve your money goals, without judgment or financial jargon. Know that all discussions are kept strictly confidential. This service is offered as an employee benefit with no per-session co-pays, so you can meet with a financial planner as often as you wish. Services are paid by your retirement plan or your employer.
Connecting with a financial planner is easy! Here’s how:
- Visit FrancisWay.com > Services > Participant Portal
- Call (866) 232-6457
Download the free mobile app (Search for Francis LLC)
[1] https://www.forbes.com/sites/bradadgate/2024/02/20/survey-on-average-subscribers-pay-924-a-year-with-streaming-video/?utm_
[2] https://wallethub.com/edu/b/how-much-does-the-average-american-household-spend-on-dining-out-each-year/150848?utm_
[3] https://www.t-mobile.com/dialed-in/wireless/average-phone-bill-per-month?utm_
