We continue our series of posts on how to master personal finances and gain financial freedom faster.
This time, our topic will revolve around expenses reduction. In case you missed the previous post, you can go back and learn all about debt settlement.
Note that we do not advocate that you completely stop spending, but even the smallest of changes can give you more money in your pocket to pay off debt or increase your savings. So here’s the next part of your ultimate guide on how to manage personal finances:
Buy in bulk
For the things like canned food, paper towels, etc. that your family uses all the time, buy in bulk whenever you can.
Examine your cell phone plan
If you are always short on minutes, causing you to pay more, or if you are never using up what you have, try changing the plan to a less expensive one.
Unplug the electronic devices
Devices that you are not using can eat up a lot of energy. Each item that you unplug can save you over $10 per month.
Eat out less
Not only is eating a home-cooked meal healthier for you, it is also much cheaper. Skipping on eating out two times per month can easily save you $50.
Make coffee at home
Don’t waste $2-3 a day on coffee − making your own will cost you a third of that!
Use refillable water bottles
Spending $1.50 on a bottle of water each time you go to the gym can really add up. Invest in a filtration pitcher that you can use to fill a reusable water bottle.
Look at refinancing your loans
It can’t hurt to try, and refinancing a student loan or mortgage might save you thousands of dollars.
Shop around for a bank
If you are getting charged a heavy monthly fee, it’s time to switch credit cards or even banks.
Call your credit card company and ask them to give you a lower APR
We already discussed that you should not have any credit card debt, but if you do, call and ask for a lower interest rate, which can save you money.
Shop around for a car and home insurance
There are several factors that can affect how much you need to pay for these. Make a few calls to see if you can find a better deal without having to reduce your coverage.
Reduce shopping
Do it less often. Before you buy, ask yourself: do you really need those new jeans or that new shirt?
Check your cable package
Do you really need to spend extra money on those channels you hardly watch? The movie channel can cost you $20 a month alone.
Home heating & cooling
Set your thermostat at 70-72 degrees, rather than changing it with the seasons.
Vacation time
It’s fun, and all of us would love to go, but try taking one big vacation each year rather than a bunch of smaller ones − you can save a lot by doing so.
Gym memberships
Exercising is important, but too often we spend $50 or more a month on a gym membership and then don’t use it.
This week’s activities for success:
- Discover 3 ways you can reduce your monthly spending & expenses.
- Create a plan for what you will do with the money that you save.
We hope that our mini-series about mastering your finances have been helpful to you. Share this article with your friends if you liked it and comment on how you’re saving experiences below!
To continue reading about managing your funds, check out more articles about how to plan for your vacation and save money at every stage of life.
Still looking for more? Feel free to check out our comprehensive personal finance guide to learn more about managing your budget and staying financially healthy.