In the current economic climate, as millions struggle to get by, reducing your expenses could be a god send. But often that is easier said than done. With a bit of research, planning and perseverance, we can all reduce what we spend, without reducing our quality of life. Here is how.
Methodology
Depending on what method you use to reduce your expenses, will dictate what you deal with in your life first. Look online and read up on the many methods on budgeting and dealing with expenses. Once you write down everything you earn and everything you spend, things will become a lot clearer.
Reducing Your Expenses – Life’s Necessities
Such necessities will include mortgage payments or rent, food, bills, and perhaps a vehicle and its associated costs. You may think there is no scope for leeway here in reducing costs, and often there is not. But often there is too. After all, there are cheaper ways usually to live the same life. A different energy provider may be better-priced, a cheaper car may serve the same purpose and in fact be more reliable, and you may be able to lower accommodation costs too. Don’t just accept what you pay for everything, and question value for money instead.
Write Everything Down
As mentioned briefly earlier in this article, list all costs, and all income. It may open your eyes. Fact is, most of us do not know what we spend all of our money on. Only when we see it laid out in front of us do we see how we waste money. So download that app, or create a spreadsheet. List everything thereafter of a financial nature, and see where you can reduce costs without any suffering, Miss out on that coffee on the go, and make that lunch at home.
Reducing Your Expenses – Debt Considerations
If you have debt, you regularly need to evaluate it and consider if you need to change your approach. If you are paying interest on debt, can you move the debt using a credit card offer to a zero interest card? would it be cheaper to take out a lower-interest loan and consolidate debt? Can a friend or family member help you out? All things to consider. Prioritise higher interest debts first, as this will save you money in the long-term.
Sacrifices
Or not, as you can make big savings without having to suffer. Do you really need to buy a coffee or a sandwich when you can make it yourself and take them with you? They will be just as nice. Do you need brand name foods when own brands are half the price and probably taste the same?! Be more savvy with how you spend your money, and you will soon realise you have a lot more money to spend.
