Many people dream of striking it lucky or experiencing a cash windfall to boost their bank balance substantially, whether they play the lottery or not. However, it could be easier to improve your personal finances by simply looking for ways to reduce your expenditure. If you want to stop bills from draining your finances, check out the following 15 simple yet effective ways to slash your monthly expenses.
Change Your Mindset to Budgeting
The word ‘budget’ has a bad reputation. It’s not about scaling back your lifestyle and depriving yourself of the things you need. It is about providing you with more financial freedom and eliminating stress and debt. Taking control of your spending will allow you to take control of your life, as you will have more money in the bank to pay off your bills and increase your savings. Essentially, it’s about proactively spending money in the right places. So, start budgeting to positively shape your financial future.
Review Your Bank Statements
Many people don’t like to look back on their bank statements, as they might be afraid to discover how much money they have spent over the past few weeks or months. However, it’s vital to review your purchasing history to identify where you are unnecessarily spending money so that you can make the appropriate adjustments. For example, you might discover your spending far too much money on takeout every month, or you’re paying for a gym membership you thought you had canceled. You could save hundreds or thousands of pounds throughout the course of the year by simply keeping track of your bank statements.
Consolidate Your Debts
Almost everyone has some form of debt, such as a mortgage, student loans, credit cards or car repayments. How you manage your debt will determine your personal finance in the future. If you have high-interest loans that are costing you a considerable amount of money each month, you should consider consolidating your debts into one smaller monthly repayment. Doing so will help you to avoid expensive interest rates that will eat away at your bank balance and could free up your finances, as you will pay an amount you can afford each month.
Care for Your Appliances
It can be more than a little frustrating when an appliance unexpectedly breaks down. The thought of spending money on a new product will probably fill you with dread, especially if you don’t have a rainy-day fund to fall back on. For this reason, you should regularly care for your appliances to ensure their longevity. For example, you should defrost your freezer, deep clean your refrigerator, and avoid overloading your washer. Comfort Conditioning can also provide some top tips on how to care for an HVAC unit, such as placing it away from direct sunlight and shrubbery.
Pack Your Own Lunch for Work
How would you like to have an extra $100 in your bank balance each month? All you might need to do is start packing your own lunch for work. Rather than eating out or buying store bought sandwiches or salads, prep your own lunch the evening before. You could save hundred dollars every month, which could help you accumulate a $1000 over the course of a year.
Start Negotiating on Price
How often do you negotiate on price with a company when buying a product or service? You could be shocked to learn you can haggle for a reduced price with almost every company in any industry. So, call your cell phone, wireless or cable provider to arrange a better deal, and state you’ll head elsewhere if they’re not willing to offer you a discount. You can even haggle with retail stores both on and offline for a better deal. As a result, you could lower your bills and increase your bank balance. The worst they can do is say no.
Request a Credit Card Rate Decrease
Have you got a high-interest credit card? If so, consider calling the credit card company to discuss the possibility of reducing its rate. If you consistently pay your credit card bill on time each month, a credit card provider might be happy to negotiate a reduced rate to maintain your loyalty. If they say no you should browse the market for a 0% balance transfer onto another credit card.
Stop Wasting Money on Phantom Charge
Many people are unaware that their electrical devices can cost them money when plugged in, even if they have been switched off. The devices can experience a small amount of electricity, which is known as a phantom charge, which can increase your energy bills over time. If you have multiple devices plugged in, you could be spending more money each month than you need to on electricity. So, slash your monthly expenses by unplugging devices or power strips when not in use.
Cut Out Bad Habits
Are you guilty of excessive drinking or smoking? Maybe you splurge a little too much on snacks or takeout. Not only are these habits detrimental to your health, but they are detrimental to your bank balance, too. Boost your finances by cutting out or reducing these bad habits. Both your body and bank balance will be healthier, as a result.
Pay with Cash Over Card
It’s so easy to lose track of your expenses when paying with a credit card. Keep a close eye on your finances by allowing yourself a certain amount of money to spend each week, and only pay for products or services using cash. It will allow you to take greater control of your money, as you will not unnecessarily waste cash on items you don’t want or need.
Install Energy Saving Lightbulbs
Little changes to your household can provide great savings. For example, CFL and LED light bulbs are four times more energy efficient in comparison to incandescent light bulbs. Not only that, but they can last for many more years. So, not only can they reduce your electricity bills each month, but you also will not need to replace the items as much in your home. It is the ideal way to scale back on your expenditure without having to compromise on your home lighting.
Air Seal Your Property
Are you paying a considerable amount of money on your utility bills each month? Your home might be failing to heat up because it offers multiple drafts across the property, which is common for older homes. If you want to enjoy cooler air from an A/C unit in summer and enjoy warmer air in winter, you should seriously consider air sealing your property, which can decrease your monthly expenditure while creating a more comfortable temperature across your home.
Start Using Coupons
Coupons could save you a significant amount of money every month, and you could save hundreds or thousands of dollars throughout the year. There are many ways to gain access to money-saving coupons both on and offline. For example, you can visit coupon sites online for discount codes, or you can find vouchers in magazines or newspapers, which will allow you to secure great deals across thousands of items. You could even use the coupons to stock up on non-perishable items, which can help you save money in the long-term.
Stop Spending Money for One Weekend
People are often quick to splash the cash come the weekend, as they will want to make the most of their spare time. However, cocktails after work, dinner with friends and trips to the movies can quickly add up, and you might soon be counting the pennies once Monday rears its ugly head. For this reason, you should try to reduce the damage to your bank balance by spending no money for one weekend. So, use the food in your refrigerator or pantry, play board games to have a little fun, or watch a movie. There are plenty of fun things to do for free, so leave your bank balance alone for a few days to improve your finances.
Browse the Market
A little shopping savviness can amplify your bank balance. Don’t settle for the first price you see online or instore and do your homework to secure the best deal. There are many retailers who are all vying for your custom, so they are happily slashing their prices to secure sales – but it’s your job to find them. So, do a little research to find the best grocery deals, restaurant meals, holidays, and theatre tickets, and you can live your life to the full but for a fraction of the price.
As you can see, there are many ways you can make great savings on your monthly expenses each month. You simply need to do your homework, switch products or providers, monitor your outgoings, and don’t be afraid to haggle with providers to receive the best rate for a product of service.
Do you have a top tip on how to save money on monthly expenses? Leave a comment below.