Mapping out how to spend less is one of the major challenges in personal finance. The truth is that it is not easy to save money — but cutting down on your spending is one of the best ways to save money.
You don’t need to sacrifice a lot before cutting your spending. Regrettably, spending tends to increase as earnings also increase. Saving requires a purposeful effort and means making sacrifices in order to reduce the damage associated with overspending.
Try these easy ways to cut your spending and watch your spending reduced!
1. Saving Money on Transportation
Despite that cars are a necessity; they consume a lot of money. Their value goes down persistently, they consume fuel by the gallon and need all types of expensive maintenance. Therefore, to cut down your spending on automobiles, do the following:
Make Use of Public Transportation
This is a way to cut down your spending on parking, gas, and maintenance in the long run, particularly if you can leave your car and go by public transportation.
Share a Ride to and From Work
This will enable you to reduce wear and tear on your vehicle tremendously. In addition, you save money on gas.
Consider Selling a Car you Rarely Use
If you have a car you don’t use often, dispose it and you will cut down spending on insurance.
Inflate Your Car Tires to the Optimal PSI
This will improve your gas mileage by one percent.
2. Cutting How Much You Owe
Reducing your debt can be done by:
Consolidating Your Student Loans
Consider refinancing your student loan, particularly if such loans are locked at a high-interest rate.
Refinancing Your Home at Lower Rate
Locking in a lower interest rate will save you money on your loan, reduce the amount you pay every month and increase your monthly cash flow.
Capitalizing on Balance Transfers
This may be the best alternative for you if you owe a debt with a high-interest rate. All you need to do if possible is to make sure you incorporate the balance transfer fees and pay down the whole balance transferred at the initial stage.
Applying for a Credit Card Rate Reduction
Request for a rate reduction from your credit card company, particularly if you have a fairly huge balance on it. Your request may be granted if you settle your bill on time every month.
3. Disposing of all Unused Valuable Items
Search for valuable items you no longer use and get rid of them on Craigslist or eBay and use the proceed to pay off your debt.
4. Reduce Your Energy Bills
All the gadgets plugged in gulp a lot of money on energy bills. With technological development, you can cut down on energy bills, improve energy efficiency and reduce the figure by:
Switching to LED or CFL Light Bulbs
These bulbs are more energy efficient and can last for many years.
Installing a Programmable Thermostat
With a programmable thermostat, you can change the heating and cooling of your house anytime you are at home or when you are far asleep.
Making Use of Timers and Power Strips
You can use these tools to switch your electrical devices on and off. While a timer will turn off the charge going to a power strip automatically at a particular point or time every night, a power strip having a switch on it will block the phantom charge on your devices when turned off.
Unplugging all Electrical Devices, not in Use
Remove any power strip or items you use infrequently from the socket.
Reducing the Temperature of Your Hot Water Heater
Your hot water heater accounts for almost 40 percent of your energy costs. Hence, lower the temperature to avoid burning more energy than ever in order to keep the water very hot.
4 Cut Down Your Cost of Entertainment
In an attempt to cut down spending, quite a lot of people consider entertainment as the first thing to cut, but they always forget to consider the normal expenditures that consume your financial foundation slowly, on a monthly basis.
To cut down your cost of entertainment, therefore;
- Cancel your club memberships
- Eliminate or reduce your cable bill
- Look for cheap entertainment choices
- Look for new ways to cut down your travel expenses
- Revoke magazine and newspaper subscriptions
- Think about getting rid of or eliminating other normal paid services
5.Cut Your Spending on Food
Food consumes a lot of money and it is one of the most common areas that affect our budget.
Here are easy ways to cut down spending on food and do away with waste:
- Prepare your own meal at home
- Eliminate or reduce eating out
- Use coupons to buy nonperishable items in large quantity
- Start farming or a garden
Take Advantage of Sales
By shopping at smaller retail stores, you are likely to save the most money on your purchases. Smaller stores usually have better prices compared to large department stores.
6. Cut Insurance Bills or Premiums
Insurance is essential for everybody in order to guide against any unanticipated. However, we leave ourselves in a different way when we pay more for insurance.
- Downgrading your health insurance
- Increasing your deductibles
- Shopping around for auto and homeowners insurance to get a few quotes, particularly if you have a strong credit.