How to Reduce Monthly Expenses
During periods of economic instability, conserving your cash becomes increasingly important. Not only must investments be monitored closely, but every purchase should be scrutinized. Cutting spending does not mean eliminating all social activities and amenities. Instead take time to budget, rather than simply hoping that the money will be there. Disregard of looming financial troubles only leads to panic in the future when the bills are mounting and the money to pay them is nonexistent. Several strategies can go a long way towards reducing monthly expenses and taking the burden off of your budget.
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Instructions
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Create a budget. This simple process involves listing expenses and income. Set absolute expenses (like a mortgage) in a separate column from optional expenses (like dining out). This makes it easier to recognize where savings can be found.
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Reconsider cable and internet. Although these two amenities can feel like must haves, many people have stopped using cable and internet to lower their expenses. This can cut $50 to $100 from your budget every month. Many facilities offer free wireless internet, and libraries have free computer use. The elimination of cable can also lead to more productive endeavors like family time, exercise and reading.
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Cut the credit. The first step to reducing credit card debt is contacting the credit companies for lower interest rates. Many companies will reduce rates simply if you ask them; it may help to mention that you will close the account otherwise. Also take advantage of low or zero interest checks from credit companies. You can pay your higher interest credit cards with these checks, then set up a budget to pay the balance while you have zero percent. If you request these checks from your credit card companies, they will often mail them to you.
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Shrink your utility costs. Decreasing the use of gas heaters can largely reduce your gas bills. Wear more clothing, pile on blankets and only use the heater if you must. Also unplug all appliances not in use. This might include the computer, printer, toaster, coffee maker, TV and other electronics. These items continue to suck energy throughout the day and add up on your utility bills.
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Get creative with social activities. Dining out is not only costly, but often unnecessary. Try making dinner at home with friends. If you have to eat out, look for restaurants offering specials and split entrees. Other activities can be done with less as well. Most movie theaters, bowling alleys and golf courses offer specials on certain days, so limit your use to these discounted times.
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Stretch the groceries. Instead of grocery shopping weekly, push it back to every week and a half. Set a budget for your groceries. Mentally tally your purchases as you go and choose items that are discounted and worthwhile. For instance, pasta and sauce can cost just several dollars and feed an entire family for two nights. The more economical food choices that you make, the longer your groceries will last.
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Find alternatives for luxury purchases. Many people purchase so-called “need” items that are really more like indulgences. These include hair styles, manicures, makeup, new clothes, movies, books, magazines and endless other items. Skip the salon and style your hair at home, or wait for specials. Movies, books and magazines can be checked out from the library for free. Nice clothing can be purchased at thrift or second hand stores for a fraction of the cost of the same item from a department store.
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