Whatever your motivation, we all want to cut our expenses and be able to have more money to enjoy life. Here are some tried and true strategies that will help you cut expenses each month.
Many financial experts will advocate that you make a detailed budget for fixed, periodic and variable spending, or use the coveted envelope system, but for most of us with busy lives, we just don’t have the time or the patience to overhaul our finances in such a drastic way. More importantly, big changes rarely stick. Here are some money habits that will help you save money now and for the long haul.
1. Consolidate Debt
If you are in a substantial amount of debt for student loans, outstanding medical bills or credit card debt, it’s time to negotiate a more preferable rate with your creditors. Our guilt and shame surrounding debt runs deep. Don’t fall into this trap. Everyone makes mistakes, we’re all human and even the most adept financial wizards had to start somewhere. Take heart, there is a way out. Here are three easy steps you can take to consolidate your debt: Call your creditors and let them know what you can pay and that you are looking to make right on this debt. Give them a low estimate of what you can afford and work with them from there. Set up this up as a recurring payment so that you do not need to incur more late or penalty fees each month.
Keep in mind, if a debt has already gone into collections, most collection agencies will take pennies on the dollar!
2. Reduce Food Costs
If you’re trying to cut back expenses, take advantage of your local grocery store. Take out is so much more expensive than eating at home! No one is saying you need to be the next Gordon Ramsay, but you can save a ton by cooking at home. Even buying prepared foods at the grocery store is cheaper than takeout. Here are four specific ways to save money when planning meals. Have a pantry party! Before you leave for the store, or peruse your grocer’s flyer, put on some music, and take a look at your fridge, pantry and freezer. (Dancing is encouraged here, after all its a party!) What’s in your freezer that you could use for tomorrow’s dinner? You want to celebrate taco Tuesday? Excellent, you already have tortillas in your pantry, corn, and beans! See what you have before you create a menu. And don’t forget that so many things freeze fairly easily, so you can cook a feast and have meals tucked away in your freezer away for months. Read the flyer! Look up the weekly sales at your local grocery store and build your menu around that. Flyers can be found online, so that you can create a money saving menu before you enter the store. Pinterest, Allrecipes.com and YouTube are all great resources on ways to get creative. In the beginning, I suggest you keep it simple. Pork chops on sale? Excellent, pork chops it is! BOGO on watermelon? Great, that’s the fruit I’m eating for the week. Make a list! Many people advocate that you never shop hungry. But sometimes this can’t be avoided, because let’s be real, many of us shop after work, which is dinner time! And some of you are like me… always hungry! Never go to the store without a list! Make a list on your phone of recurring items you and family need. (Milk, eggs, bread, cheese, etc.) This helps prevent impulse purchases. Shop once! Grocery stores are designed to look like TOYS R US for hungry adults. Avoid this trap by limiting the amount of time you spend in them. Write out the regular items you need for the week, this includes non-perishables. Can you save money by ordering some of these items online? Get them delivered and save yourself time and money.
3. Limit Your Vices
Smoking and drinking can get very expensive. Do you smoke? According to the CDC, the average smoker spends $188/month! If you can cut down the amount you smoke, and you will still save money. Not only will your lungs thank you, but your wallet will too!Are your nights out costing you more than a hangover? Drinking out is an expensive habit. On average, most bars mark up liquor between 20 & 30%. Save your money and stay home. Good news: You’re not addicted to Starbucks, you’re addicted to caffeine! I can’t stress this one enough, Starbucks and Dunkin Donuts are expensive! That weekly trip to get coffee will cost $20 a month. That’s $1,040 you could spend on a vacation. You can make yourself delicious caffeinated beverages at home and then use that money to go on a trip!
4. Go Green!
Here are two simple ways to reduce your electric bill: Something as simple as turning off the lights can really jack up your electric bill every month. Make sure you turn off the lights when you leave a room. Another hidden money eater are electric costs from appliances you leave plugged in. Unplug your devices and turn off things that aren’t being used.
5. Be a savvy shopper
Inevitably there will be items you need to buy each month. From new toasters to new shoes, it seems there is always something that needs to be replaced. Here are three money saving tips for when you need to make a purchase: Always ask if there is a better price and don’t be afraid to bargain. Many retailers price match so be sure to ask. If they don’t price match, you can use RetailMeNot.com for coupon codes and special offers. If you are purchasing items online, install web browser attachment like Honey. It saves you money automatically by loading coupons into your cart!
As always, another way you can reduce your monthly expenses is by reducing your taxable income. Call us today for free tax assessment. We’d love to hear from you. If you have any topics you’d like to see covered on this blog, please email or comment with suggestions!
