If a global pandemic has taught me one thing personally, it is that my finances were a mess. And i needed to address that urgently. So over the past year and especially the last 6 months, i have forensically tried to reduce my outgoings. This is a chronicle of how i slashed my expenses in 2021.
First – List Everything
The fact is you cannot cut your costs if you do not know what your costs are. I think it would surprise many of us if we actually sat down and saw precisely what comes out of our accounts every month. There are probably a few costs that you may not even know about. So your first step must be to sit down and evaluate your expenses. Use an app or a spreadsheet and get everything collated. Once you can see everything laid out in front of you, it makes it easier to then go on and makes changes to your life.
Cut The Unnecessary Expenses
So now you know what you pay out for, decide what is really necessary and what is not. If you have a subscriptions for a gym you never use, then cancel it immediately. Don’t kid yourself that soon you will be in there every day. Once you get past the essentials – food, bills and accommodation, decide where you want that money to go.
Slashed My Expenses – Balance Transfers
For those that carry debt and pay interest on that debt, it is essential that you look at how to reduce the interest charges you pay. The best way it to pay off the debt! But of course that is not possible for so many of us. So the best alternative may be to look for balance transfer deals so that for a fixed fee you do not pay interest charges during the introductory offer period. This saves you more money than the fee itself, in most cases. Have a look at what is out there, though you will probably need a good credit score for a lender to accept your applications for a card.
Slashed My Expenses – Offers
My best way of saving money over the past 18 months while sat at home is to mine every offer i can get my hands on. A lot of these are related to food shopping. I have used money off offers on my home shopping deliveries. And i have used offers within sites to get the best value for money. If you plan your meals and avoid waste, you can make a lot of savings. And i use multiple supermarkets to get the best value of all.
My Personal Tricks
I kept the heating off when cold and put a jumper on instead. Last week I phoned up Sky TV and threatened to cancel my subscription when the bill suddenly sky rocketed, and they gave me a great deal rather than lose my business. I looked at ways to make my food and drink go further without losing out on taste. And i joined a wine club that threw loads of offers at me allowing me to buy great quality wine without breaking the bank. Of course the main saving was unavoidable, as the pandemic meant my social life costs plummeted. And i have not been on a holiday for two years now, which is a shame, but is great for my bank balance.
Slashed My Expenses – Sold Off Unwanted Items
Some expenses don’t count if you sell stuff to pay for them! I was surprised to get £180 for my old Playstation 4, and i have sold off numerous other items to help cover expenses. I realised quickly i had a lot of stuff in my flat that i never looked at, and certainly did not use. So i got rid of them. I used to spend a fortune on books too, so instead i go to a local book store and exchange books i have read for ones i have not. Zero cost, and everyone wins. Those books are free to anyone who wants them anyway, but i thought it good to give something back in return.
