saving money?
There are some critical things to keep in mind when trying to save money when you’re on a budget. Most of us get into a routine of mindlessly paying for things without thinking about alternative options, and without thinking about whether those things are really necessary. We also tend to let subscriptions of monthly services that we don’t really use continue without cutting them.
Here are some of the big areas of spending that we all have and some specific recommendations for cutting and saving money in these areas:
1. Cutting Recurring Expenses
When your budget is tight, reducing recurring fixed expenses can make a big impact. Look for ways to lower costs on things like:
Rent/Mortgage
Consider downsizing your apartment or house. If you live alone, consider getting a roommate. If you have the flexibility, consider moving to a cheaper area.
Utilities
It is so easy to reduce your energy usage.
- Turn off electronics and appliances that you are not using (do you need the TV on in the other room?)
- Adjust the thermostat down to a lower temperature
- Use LED light bulbs
- Reduce slightly the water temperature for showers
- Shorter showers and less water in the bathtub – you still get clean!
Subscriptions
So many of the things that we pay for each month are because of “set it and forget it” which is convenient, but leaves many of us needlessly paying for years. Cancel unused services today!
- Streaming services
- The gym membership
- Magazine subscription
Reduce Food Costs
Food is one of the biggest flexible expenses for most households. Swapping some eating out for eating in can save so much money. Here are some other ideas to try:
- Plan meals and make a grocery list to avoid impulse purchases
- Buy generic/store brand items when possible
- Cook at home instead of eating out
- Pack lunches instead of buying food at work
- Buy discounted groceries near closing time
- Buy generic or store brands
- Eat seasonal food! The fresh tomatoes taste much better and are much cheaper in the summer!
- Grow some of your own produce if possible
Get Frugal with Entertainment
We don’t always have to go to expensive shows or see the latest movie at the theater. Here are some ideas for great entertainment at a cheaper price:
- Check your local library, park district, museums for free/low-cost activities
- Rotate subscription services instead of paying for multiple at once
- Have potlucks or game nights with friends instead of going out
- Look for free days at the zoo, at museums, etc.
Cut Transportation Costs
We all need to travel, but there are ways.
- Walk or bike if you are going somewhere close by
- Drive a fuel-efficient car. Do you really need a big SUV to go back and forth every day?
- Shop ahead of time for cheaper airline tickets
- Shop around for better insurance coverage plans for your car
- Try to work remotely so you can reduce the number of days you have to travel
2. Do It Yourself
Instead of paying a professional, why not do it yourself?
- Learn to do basic home/car repairs yourself instead of hiring someone
- Cut your own hair or do at-home beauty treatments
- Make your own cleaning supplies using basic ingredients
3. Make Your Own Coffee
The Sumatra blend you brew at home tastes just as good in your travel mug as it does in the paper cup from the corner coffee shop.
4. Wait for Sales
If you are flexible on timing for certain clothing, appliances, household items you want, why not wait until they go on sale?
- What will be on sale and when?
- When a new model comes out, the previous one will probably be reduced in price. That is the best value!
- Can you wait until after Christmas to buy? That is a great time!
- Are you signed up for the newsletters at the stores you like? They usually tell you when they’re running a sale
5. Buy Second-hand
Many things are actually just as good used.
- Used cars are the best example!
- Gently used furniture is another good example
- How about gently used appliances?
- Clothing from thrift stores, garage sales, or online marketplaces is always in style
Summary
By thinking creatively and being open to alternative solutions, you can find unique ways to cut expenses without significantly impacting your lifestyle.
The key is looking at every expense, no matter how small, and finding areas to cut back. Making little reductions across many spending categories can lead to significant overall savings when money is tight.
