With inflation off the track and the cost of living rising at levels no one has seen in the last decades, now, more than ever, it’s crucial that we implement strategies to reduce expenses and save more money. This can be quite challenging since we all live in a consumer-driven society in which spending above our means seems normal.
Below we will see some smart and proven ways to make it happen.
Cut back on transportation costs
Transportation is a major expense for many people. It is also one of the most actionable items in this list, meaning -depending on your circumstances- that it may be one of the easiest ways to start your saving endeavor. The most obvious way of cutting transportation expenses is to replace driving with public transportation. This way you wouldn’t only save money but you will also reduce your carbon footprint and help the environment. Other ways to move around include walking, biking or even carpooling.
Save on Food Costs
Food is perhaps the second biggest expense people have. Here, the way to go is by cooking at home instead of eating out. You can also consider buying in bulk and shopping at discount stores. Looking for special offers and promotions can also help save some extra money.
Reduce your utility bills
Utility bills include electricity, heating, water, telephone & broadband connection. Of those expenses, electricity and heating are the biggest and those you should focus on how to reduce. Some smart ways to save are: unplug devices that are powered off, invest in energy efficient home appliances and lower your heating thermostat by 1 (or more) Celsius Degrees. Other ways include installing solar water heater and solar panels. You should also turn off lights in rooms you don’t use and replace old lamps with LED ones which are very power efficient.
Cut unnecessary subscriptions.
It’s amazing how many small fee subscriptions can someone accumulate these days. Countless services & apps can charge us anything from $2-3$ up to $20 or $30 per month. Those can quickly add up and build a recurring expense that is a significant portion of our monthly expenses. Moreover, it’s often the case that we forget some of those services which continue to charge us for services that we no longer use. Some examples might be subscriptions to magazines (digital or print), news sites, online games, productivity apps, music & video streaming services, food delivery services, etc. One should evaluate monthly which of those services are useful and cut those that are being used seldomly or not at all.
Pay off debt
Prioritizing paying off debt can go a long way in helping us manage our finances. This is especially true for credit cards debt and personal loans which have big interest charges that quickly erode our disposable income. By reducing or paying off completely our debts, we eliminate those substantial monthly expenses, reduce our stress and improve our credit score.