Cutting back on expenses can be tricky and stressful, but it can be done. We’ve put together some ideas to get you started but, if you get creative, you’ll find there are countless ways to stop the unnecessary spending today!
Key Points:
- A budget can be a helpful tool for cutting back on your expenses.
- Reduce monthly expenses by starting small and increasing what line items you cut back on each month.
- Eliminate as much spending as possible if you need to drastically cut your expenses due to financial hardship.
A budget can be a valuable tool for you when cutting back on expenses because it lays out where your money is going each month. Create a budget or review your current budget to find where you can cut back on expenses.
How to Reduce Monthly Expenses
Once you have created or updated your budget, find line items that are significantly higher than others. These line items may be the best place to start! If that’s not possible, look for other ways to reduce or eliminate monthly expenses such as:
- Canceling or decreasing the frequency of subscriptions if possible.
- Borrowing what you can instead of buying. Take advantage of your local library—some systems offer more than just books!
- Using coupons or waiting for a sale when applicable.
- Spending less on essential line items where possible such as groceries or electricity.
- Eliminating monthly services you can do yourself, such as trading your gym membership for home gym equipment.
It may be easier to start small and work your way up when reducing monthly expenses. Don’t forget a budget should be flexible and can be changed if it’s not working for you.
How to Avoid Unnecessary Expenses
If you tend to splurge on unnecessary expenses, you need some strategies to combat that habit:
- Give yourself some time to think about the purchase before committing to it.
- Tell friends or family members what you are doing and ask for help to stay on track.
- Pay with cash instead of credit, especially if you’re going somewhere you’re known to make unnecessary purchases.
- Make a list before shopping…and stick to it!
- Avoid spending time with friends that like to over-spend.
How to Cut Expenses on the Family Budget
With a family to take care of, you may need to make additional cuts to your budget in order to make ends meet every month depending on your income.
- Make sure the whole family is on board and actively involved in cutting expenses.
- Don’t forget to look for savings opportunities on seasonal expenses such as family vacations or recreational sports.
- Re-use what you already have.
- Don’t be shy about hand-me-downs – especially with kids that quickly grow out of clothes.
- At back-to-school time, buy a backpack that will last for more than one school year.
- Plant a vegetable garden to cut back on grocery bills.
- Look for ways to reduce energy bills.
Get creative and you will most likely see a big difference in your family budget.
How to Drastically Cut Expenses
In times of financial insecurity, it may be beneficial to eliminate all spending outside of essential monthly bills. Update your budget with your new income and see where you can drastically cut expenses to stay within your means.
Avoid places where you are most likely to spend money to help drastically cut expenses. If you are going through a financial hardship, this is not the time to stress shop. This may also be a situation where a friend or family member may be good support to help you stay committed to your goal.
If cutting back on expenses isn’t enough to keep you out of debt, ClearOne Advantage can help! Our Certified Debt Specialists are standing by to help you explore your debt relief options and work out a solution customized just for you. Call 866-481-1597 to speak to a Certified Debt Specialist today and get a free savings estimate.
