How to Reduce Expenses: 6 Simple Tips
If you run out of money before you run out of bills, it might be time to reduce spending. Below are six tips that will help you reduce expenses and save money. From bundling your phone and cable services, to making coffee at home instead of stopping at the local coffee shop on the way to work, there are numerous way you can cut spending without depriving yourself. Continue reading to learn how to reduce expenses and save more money each month.
1. Take small steps
Trying to cut all of your expenses at once can prove discouraging. Instead, consider an incremental budgeting plan where you cut costs one at a time. It is also a good idea to track your spending for a month to see where the money is going before deciding what to cut.
2. Eliminate unnecessary routine purchases
Eliminating unnecessary routine purchases is a great way to start cutting expenses. While it may not be the largest savings area, it is important and easy. Is it necessary to stop at the coffee shop on your way to work when you can make coffee at home that will cost just pennies? How much do you spend each week on sodas and snacks purchased from the office vending machine that typically cost $1.00 or more each? Consider purchasing a 12 pack of soda at the grocery store, instead. Cutting back might be difficult at first, but when you add up all the money you’re spending on unnecessary purchases, you’ll realize how important it is when it comes to reducing expenses.
3. Review your monthly services
Your monthly cell phone, cable, and Internet bills can add up to hundreds of dollars per month, especially if you have unlimited mobile data plans or watch premium TV channels. Try to bundle plans with your provider to receive a discount. If you are not able to bundle all items together, consider switching plans to save money. If you’re looking for a more extreme measure, you can always get rid of cable and watch TV shows for free using websites like Hulu and Crackle.
4. Lower your monthly insurance premiums
Car insurance is another area where people tend to overpay. Contact your insurance company to determine if you can reduce your premiums and save money. You could also consider changing insurance companies as another cost-cutting option. In most cases, though, choosing a higher deductible on your current insurance plan is enough to significantly reduce premiums and save you money each month. If your car is 10 or more years-old and paid off, you can also consider switching to state minimum coverage to lower monthly insurance costs.
5. Use coupons
Using coupons can save you a lot of money each month. You can find money-saving coupons in your local Sunday newspaper, or on sites such as Groupon and Dealfind. Coupons allow you to save money on everything from groceries to oil changes, often reducing costs significantly. Another money-saving tip involves joining points promotion programs at retail chains. These programs can help you earn gas discounts and free merchandise.
6. Eat and shop smarter
It’s easy to cut costs when grocery shopping. Save money on groceries by planning weekly menus and shop according to sales. Combine these efforts with the use of coupons as mentioned above, and you can save a lot of money each month. Another way to save a considerable amount of money is to take your lunch to work more often rather than dine out. Having potluck parties at home instead of going to restaurants with friends is another fun, easy way to cut monthly expenses.
Sticking to a monthly budget is great, but if you find that you still don’t make enough money to cover all of your expenses, consider earning an associate’s degree or bachelor’s degree. According to the U.S. Census Bureau, workers who have an associate’s degree earn $8,000 more per year than high school graduates, and workers who have a bachelor’s degree earn about $24,000 more per year. With in-demand degree programs that allow you to earn a degree in just 15 months, Fremont University is an excellent choice. Explore our College of Multimedia Design, College of Business, College of Legal Studies, or College of Healthcare to find the degree program that is right for you. If you need help paying for school, financial aid is available to those who qualify.