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If you have a partner, it’s always good to confirm that they’re on the same page in terms of your financial goals and money management. Whatever trick you end up using, lifestyle creep can be brutal for those trying to save more, whether you’re on a six-figure salary or something closer to $40,000 a year. But by closely examining your needs vs your wants, there’s no reason why you can’t take control of your spending and stop yourself before lifestyle creep takes over. The methods in this article will absolutely go a long way if you’re looking for how to drastically cut expenses. Many companies, especially those that manage student loans, provide interest rate reductions if you sign up for automatic repayments.
This option will still be cheaper than paying for unlimited data for the whole year. So the telecom giants came up with tiered plans where they offer data packages in bite sizes (2 GB, 4 GB, 8 GB, 16 GB, etc.) in addition to an unlimited plan. As a developed nation, power is generally cheap in the USA. But, depending on your usage, the monthly bills can add up.
Freeze your credit cards
Then make a grocery list of what you need before your trip to the store. And if you stick to your list, you can avoid impulse buys. Picking the right savings account is also essential to make sure you can save the most and earn the most while your money is tucked away for a rainy day. Look for an account that’s fee-free with options to help you earn the most on your money. You may be able to get a better price on some products and services by offering to pay cash.
Other saving methods involve an upfront expense, but will save money in the long run. Make sure you buy Energy Star appliances, update your water heater. Changing your heating and cooling system can help both your bills and the environment. Electricity costs account for about 12% of the average household budget. Some financial institutions even have a graph or pie chart on debit card accounts with spending categories, showing where your money went. If you pay for everything with a debit or credit card, check your statements.
Bulk cook your meals
A while ago, for one month, myself and a then work colleague lived money-free—I cut expenses by 100%, pretty much! The job I was in at the time paid for my accommodation and transport, so all I had to worry about was food. On the second day of the experiment, however, we met a ‘freegan’ who regularly collected food thrown out by all the supermarkets in town. So, following her lead, we went along, filled up her truck with perfectly packaged food, including toothpaste and other essentials, and lived money-free for the month. Part of your budget should include higher-than-minimum payments on your credit card. Keep debt consolidation in mind, particularly credit counseling.
From monthly maintenance fees to overdraft fees to ATM fees, banks bring in billions of dollars each year. Housing is the single largest line item in many people’s budgets. And while it might seem like an expense you don’t have a lot of control over, you can reduce your housing spending. Thanks to the pandemic, we’re all spending a lot more time at home. And many of us are saving money on restaurants and entertainment, our electricity use has skyrocketed.
Getting Started…
Here are 15 easy ways to cut spending to help you stay within your budget more consistently. And the average American spends hundreds of dollars per year on banking fees. If you find that you’re spending a lot of money on fees, consider switching to a no-fee online bank.
If you’re struggling to pay your bills, you may need to find other ways to cut down on your expenses. For example, you can check to see whether you’re eligible for COVID-19-related relief programs for student loans and mortgage and rent payments. And if you’re a Capital One customer having trouble making payments because of COVID-19, you should reach out directly to discuss potential options. If you find billing errors on your statement, contact the service provider and ask them to fix it.
Consider switching from brand-name items to generic or store-brand, as store-brand groceries typically cost less money. Also while shopping, don’t be afraid to ask for discounts. Most big-name grocery stores will have a loyalty or discount card, enabling you to purchase items at a lower price, and possibly get coupons to use in the future. Go through your credit card statements carefully to look for recurring monthly expenses and make a list of services you're paying for. Ask yourself if each one is really worth it or if the money could be better used for other goals. If you don't really need the subscription service, cut it from your life.
However, with the social media boom over the past decade, unlimited data became more and more valuable. If you have an unlimited plan, my guess would be not that often. Another option is to only use high-energy appliances and activities only during off-hours when electricity is cheaper. Keep your laundry, dishwashing and vacuuming for off-peak times.
A debt management plan, from a nonprofit credit counseling agency like InCharge Debt Solutions, may be a good fit for someone looking for help with credit card debt. Like a loan, debt is consolidated into one monthly payment. But unlike a loan, creditors offer lower interest rates to nonprofit credit counseling agencies, who pass them along to you. Go through your bank and credit card statement for the past month and see if you’re paying for any monthly subscriptions that you no longer use.
Having food in the freezer ready to cook will also help you avoid the temptation to order a pizza after a long day. Libraries provide access to thousands of free books, DVDs and music. Many libraries are also offering curbside services right now.
Nancy Polanco is a freelance journalist, lifestyle content creator, and editor of Whispered Inspirations. She is a proud Mom to Gabby and Michaela, and wife to Darasak. They all share her insatiable wanderlust, enjoyment of good food, and sharing their adventures with the world. Nancy is a contributor to the Huffington Post, TODAY’s Parents, and an Oprah Magazine Brand Ambassador. Auto-renewing insurance may be quicker, but most of the time, your new premium will be far higher than it was the previous year.
There are lots of completely free programs that you stream tons of TV shows and movies. If your budget is super tight this should be the first cut you make (I promise the TV isn’t crucial for staying alive). Check out our list of favoritefree Roku channels to give you other options for things to watch. Another way to reduce your monthly insurance premiums is to increase your deductible. In general, as your deductible goes up, your premium goes down.
“You may be surprised at how much you’ve spent on certain items, but this gives you a good chance to see just where adjustments are needed going forward,” Barker said. If you stacked that amount of debt in one-dollar bills, it would reach all the way to the moon.
It’s also a great strategy to follow if you’re working on being fashionable on a budget. And, as a pro tip, you can save even more money by installing a programmable thermostat. That way, you can cut your expenses further by setting the temperature at night to be cooler in winter and warmer in summer than during the day. While LED light bulbs cost more to buy upfront than regular bulbs, the cost savings over time will make this more than worth it. If this is an option for you, moving in with family can also be a great way to save a lot of money on your accommodation costs.
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