Expense reduction and optimization isn’t about avoiding the daily Starbucks or always flying out on a Tuesday. Those things help, for sure, but you need to look at expenses the same way you look at saving (a penny saved is a penny earned, right?). Most financial gurus, and me, advise people to “making saving automatic” and to create streams of passive income. Expenses are no different. “Remove/reduce automatic expenses,” meaning, cut out those expenses that hit you like a punch in a dark room. Take the action today to create streams of “passive expense optimization.” I shop around for car and home insurance every time I renew (six months or annually). I recently paid a $320 early termination fee for DirecTV, but that will save me over $2,000 over the rest of our contract. I bought a dozen LED lights today for our kitchen and hallways—a $120 expense that will save $120/yr for a decade or more.