How to Cut Down on Living Expenses

Everyone engages in habits that eat up excess money. But taking up a few money-saving habits can add up to extra dough before you know it.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Computer spreadsheet
• Open-minded neighbor
• Piggybank
• Library

1. Create a spreadsheet that documents your daily spending habits.
2. Establish where you could cut back on expenditures such as eating out, movies, spa treatments, shopping sprees, etc.
3. Examine all the extra services you pay for monthly such as cable, internet, home phone line, DVD subscription programs, beauty treatments and gym memberships.
4. Cut out or downgrade as many of these services as possible. Rent movies from the library instead of going to the theaters, paying for cable or paying for a subscription program. Extend the time between beauty treatments. Find a neighbor who also needs internet and establish just one account with wireless access. Share a password and connection and split the monthly bill. Join a running group or use the exercise circuit training provided at parks instead of paying for a gym membership.
5. Take a sack lunch to work and limit the amount of times you dine out per week. Many people are content dining out once on weekends and once during the week.
6. Establish a budget for all expenditures. Such as spending $60 a week eating out or $120 a month on miscellaneous expenses.
7. Run errands on foot to save on gas, get outside more and increase your exercise.
8. Collect loose change in a piggy bank instead of using it when paying. Make it a habit to break a dollar every time you settle a bill.

Tips & Warnings

• Many communities have second-hand stores that will pay for gently used clothing and household items. Make it a habit to clean out your home every season and re-sell items you're not using. Donate the rest to charity and claim it as a tax write off
• If you're not truly attached to a certain brand buy generic food brands from the grocery store. Do the same with medicines as long as the ingredients on the back of the packages are the same