Everyone's financial situation is different. Are you living paycheck to paycheck, having debts to pay off, or looking to cut down expenses to reach a financial goal? Are you doing well and aiming to build a more secure financial future? Whatever the reason, figuring out how to spend less money can be challenging, given the ever-increasing cost of living. This doesn't mean it's impossible. A successful way to save more money is to reduce monthly expenses.
Here's how:
Use Public Transportation
Owning a car can be expensive, from auto insurance, maintenance, repairs, parking tickets, and gas tank filling. If you can access public transportation, use it. Learn to take the subway, bus, bike, or simply walk whenever possible. Imagine how much more you can save on car payments if you avoid buying a car altogether? Rideshare services in major cities make it easy to live without a car. For those in smaller towns with a small public transportation system, consider carpooling and splitting gas with friends, neighbors, or co-workers.
Reduce Your Entertainment Expense
When you want to cut monthly expenses, this is where to begin. Since the entertainment budget encompasses a lot, here are a few suggestions. First, eliminate or reduce regular paid services such as cable subscriptions, Netflix, magazine and newspaper subscriptions, club memberships, etc. Instead of going out and throwing parties occasionally, look for cheaper entertainment options. Spend a day at the park, go to local theatres, take your kids camping instead of an expensive amusement park, or simply have fun the old-fashioned way by socializing with loved ones.
Reduce Energy Bills
Energy bills account for a fifth of household expenses. Switching to a cheaper supplier is the easiest way to save on this. Most energy bills are not over-the-top luxuries you can cut off completely. Luckily, technology has made it possible to significantly reduce each energy bill. Some steps you can take towards that are installing LED light bulbs, installing a programmable thermostat and insulation, unplugging unused electrical devices, investing in renewable energy, and so on.
Save Money on Food
Although food is one of the most significant and compulsory expenses in every household, you can save on it in several ways. For instance, reduce or avoid eating out and getting take-outs, buy fresh foods that are in season as they tend to cost less, avoid buying fresh foods in bulk to prevent spoilage, use coupons whenever possible, pack your lunch to work, trim down on special treats, buy generic foods, among other things.
Sell Unused Items
Unless you are super-organized, chances are you have a lot of stuff you don't need anymore that is worth selling to make extra cash. You can arrange a garage sale and sell unused items like TVs, tables, DVDs, clothes, stereo equipment, and much more. Alternatively, sites like Craigslist, eBay, Amazon, and Gumtree have made it much easier to sell items online.
