If you are like most people, you could handle cutting back on your monthly expenses. If you want to be able to save money for a home, your retirement, or just to have a comfortable nest egg, you need to save money. The only way to do that is to start cutting back on your monthly expenses. Fortunately, there are a few ways that you can do this that aren’t as difficult as you may think.
#1 Make a List Of Your Expenses
The first step in cutting back on your monthly expenses is to make a list of your expenses. This will give you an idea of where your money is going. Even if you spend just a couple of dollars on something each day, it should be added to the list. These few dollars can add up at the end of the year, so they also need to be considered.
#2 Make Coffee At Home
You may not realize how much you are spending on coffee at the coffee shop each day, but it really adds up. If you buy a $2 coffee every day, it totals to $730 per month. You can make your own coffee at home for a fraction of the cost. This will allow you to put hundreds in your savings account every year.
#3 Shop the Store Brands
When you go to the supermarket, you should start buying the store brand rather than the name brand. In most cases, there isn’t much of a difference in the ingredients of the two; therefore, you might not even notice the difference. When you start shopping for the store brands, you will see that your grocery bill is significantly reduced.
#4 Pack a Lunch
Buying your lunch every day can really add up. If you are spending $7 on lunch every day, it totals to $35 per week. This will cost you $1,820 per year. If you pack a lunch every day, it will take you a few extra minutes every day, but it can save you a lot of money. Making lunch at home can cost as little as $2 to $3 per day, which will allow you to save a lot of money.
#5 Bulk Cook Your Meals For the Week
One way people waste a lot of money is by spending money on takeout when they don’t feel like cooking. It may not seem like a lot a meal at a time, but when you order takeout often, it can really add up. To prevent yourself from ordering takeout, you should bulk cook your meals for the week. If you spend a few hours on Sunday preparing your meals and storing them in the freezer, you won’t have a reason to order takeout. If you are too tired to cook at the end of the day, you will have meals in the freezer that just need to be defrosted. This will save you hundreds, possibly thousands of dollars over the course of a year.
#6 Turn Off the Lights
Cutting back on your electricity bill will save you money over the course of a year. Fortuneteller, it isn’t as hard as you might think. When you leave a room, turn off the light. The same is true if you aren’t watching TV or listening to the radio. If you aren’t using an appliance or light, turn it off. If you live with forgetful people who tend to leave the lights on, you can put stickers by the switches to remind them. If you start saving on electricity, you can start saving more money.
#7 Pay With Cash
When you buy everything with your debit card, it is easy to spend more money than you realize. When you use cash, you will see exactly how much money you are spending. Each week, take out just enough money for the things that you will need to buy for the week. When you create an allowance for yourself, you won’t spend more than you intend to.
#8 Rethink Your Gym Membership
Most gym memberships cost between $10 and $30 per month. If you are only going to the gym once or twice a week, you should consider dropping the membership. You can always get your cardio workout by jogging or riding a bike. You can also invest in an inexpensive weight set or piece of exercise equipment, which would allow you to workout at home. If you cancel your gym membership, you can save between $120 and $360 per month.
Your daily commute to work can end up costing you a lot of money in gas. If you live near a coworker, you should consider carpooling. You can take turns driving to work each day, which will cut your gas costs in half.
#10 Reevaluate Your Phone and Insurance Plans
You could be spending more than you need to on your phone plan and car insurance than you need to. You could be spending hundreds of dollars more than you need to every year. When your car insurance is ready to be renewed, you should call around and get quotes from different companies. There could be one out there that is cheaper than what you are currently paying.
The same is true with your cellphone service. Companies are always lowering their prices to get customers to switch to their service. If you are under a contract with your current service provider, look into other plans when the contract expires. It could end up saving you money in the long run.
If you want to get ahead financially, you need to be willing to make sacrifices so that you can save money. If you make just a few changes, you can save thousands of dollars more every year. This is money that you can add to your savings.