- Track your spending habits
The first step to cut expenses is knowing where the money is going. Start tracking your expenses for 30 days. This way you will have a clearer idea of how much you spend and where can adjustment be made
2. Get on a Budget
Creating a budget can be perceived as a great challenge, but in simple words it is just separating spending and assign them an amount. To create a budget, first you will need to determine your income, your fixed bills (rent, utilities, debts) and your need (food, clothes). In this area you must also consider an emergency fund that will help you when unexpected spent arrives.
3. Evaluate Your Subscriptions
Check your monthly subscriptions such as cable TV, streaming services, weight loss programs, etc. Make a list of all your subscriptions with its own price. Now with an exact amount of how much you are spending try to eliminate the ones you do not frequently use or the ones you do not really need. Cancel those possible and cancel their subscription to emails or newsletters, this will avoid going back to subscribe.
4. Lower Your Housing Expenses
Here are some options you can take in consideration to reduce housing expenses:
In case your rent:
- Get a roommate.
- Try to do home repairs by yourself, for a discount on the rent.
- Move to a cheaper apartment,
In case you own a house:
- Refinance your debt to get a lower rate.
- Rent a part of your house.
5. Eat at Home
Preparing your own meals at home can make you save a lot of money. This could seem hard but planification is the key. Define what you will eat during the week and stick to it. Look for some creative meal’s ideas on the web, that will make your job easier. You can prepare your meals during the weekend.
6. Shop with a List
Saving money at the grocery store can easily start with a shopping list. This good habit can cut off food expenses, promote meal planning and sticking to it can help you cut down on impulse buying.
7. Use Cash Only
Using cash-only can give you a big dose of reality to your expenses. Start month with paying all your expenses described in your budget. And use leftover cash on your irregular expenses.
Getting Started…
The perfect time to reduce your expenses in now. Taking it one step at a time will make it easier and will bring amazing results to improve your finances. At any time, you can consider reaching us to assist you during all process and give you extra tips or advise to keep you going and get effective results
