Why ditching that gym membership is good for you.
Gym memberships cost an average of $50/month with an initiation fee of about 50-100$, some in excess of $200, at a yearly cost of about $700, in 10 years that is $7000.00!!!
How many times you actually end up going to the gym? Is the real question to ask.
According to this study from Berkeley the average person aims to go ~9 times per month to the gym but actually ends up going 4 times per month, that is about 50 times per year, to an average of $14 per work out. Complete waste of money. It is NOT cost effective.
Some gyms will not let you sign up until you give a credit card number and will keep charging you, before you notice is too late.
In my opinion signing up for a gym is setting yourself up for failure, the logistics of going to the gym, traffic, finding parking, working out then coming back home to shower is just too much on a hectic weekday for the average working individual.
Instead you can either invest on a spinning bike or a treadmill and impose yourself a tax of $5 every day you do not work out. Average spinning bike/treadmill $250, the treadmill described above actually folds so space is maximized.
Time to work out is early in the Morning. Wake up 30-40 minutes earlier and just do it.
If you do not know how to spin just sign up for a free spinning class in your local gym, they usually allow 1-2 free classes, browse a few gyms and you will get the idea, it's not hard. At home just hook up your smartphone to youtube and commit to doing 3-4 songs per day, in between songs hydrate. You will start noticing the benefits almost immediately, believe me.
This $700/year saved could be either invested yearly in an index fund such as VTSAX where it can grow to $10,480 in 10 years or invest it in a 529 college fund for your child and have similar returns.
Remember at the end it is the small things that add up.
Financial independence is the goal. Laser focused.
Till next time.