Whether you are saving for a financial goal, life change, or to pay off debt; cutting back on monthly expenses will help!
Your income is the tool you need to get where you want to go. If that income is completely tied up in monthly expenses then you won’t reach your goals very fast.
Therefore, you have two options, get a bigger income or fewer expenses. Let’s tackle the expenses.
Here’s how to cut your monthly expenses…
1. START A BUDGET
First, before you can start cutting expenses, you need to have a road map. Starting a budget is the best way to track your spending. Head here to learn more about why a budget is so important.
Along with starting a budget, let’s do some plastic surgery.
Yep, you read that right.
Get out the credit cards and cut them up.
Without a doubt, you spend WAY more money when using a credit card. Because it’s always easier to spend someone else’s money than it is your own.
Therefore, in order to cut back on expenses, you need to use something that will hurt – like cash. Unlike credit cards, using cash will help you physically see how much money you have on hand and help you assess your spending more.
Download the free budget template to help with this process!
2. REDUCE SUBSCRIPTIONS
The average American household has NINE paid subscriptions!
People subscribe and then forget about the subscription while the monthly fee continues to come out of their account. Doing an audit of your monthly subscriptions is key to reducing unnecessary spending.
This step will also help you evaluate what you can and can’t live without.
3. DECREASE ELECTRICITY USAGE
Even though you may not see immediate results with this step like the previous one, it’s still beneficial!
Change household habits, like:
- only running the dishwasher with a full load,
- turning down the thermostat,
- air drying laundry rather than running the dryer,
- shutting off lights
Upgrade to energy-efficient options:
- Energy-efficient light bulbs
- Programmable thermostat
- Energy Star appliances
Also, shopping around for the cheapest providers can help you reduce costs!
4. LOWER HOUSING EXPENSES
In addition to reducing electricity, there are others ways to lower your housing expenses, whether you are a renter, or a homeowner. They are as follows:
- Get a roommate
- Do easy repairs yourself – YouTube is a great teacher!
- Move to a cheaper area, or
- Refinance your home loan.
Of course, these all depend on your individual situation.
5. MEAL PLAN
Improving your basic household skills like food preparation and meal planning can have major savings!
It is five times more expensive to eat out than to eat at home. FIVE TIMES! That is insane!
Many bad spending habits can be solved by simply planning, and meal preparation is one of them.
Download the free weekly meal planner and head here to learn more about how to meal plan.
6. REDUCE INSURANCE PREMIUMS
Another expense you need to shop around on is insurance. Taking the time to compare prices on insurance can greatly reduce your monthly expense.
You can even look into options to bundle multiple insurance premiums like home and auto insurance.
Get in contact with an insurance broker if you are nervous about comparing prices alone. Insurance brokers work for you – not a particular insurance company. They shop the market to find you the best premiums.
7. PAY OFF DEBT
Finally, get rid of your debt! You will have a HUGE weight off your shoulders and reduce your monthly expenses.
Once again, your income is your biggest tool and how are you going to get where you need to go when your income is tied up with payments to debt?
Learn more details about paying off debt here!
Hopefully, these steps help you brainstorm more ideas on ways to reduce your monthly expenses. Use what works best for you and your family. Follow along to learn more about being intentional with your money!
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