It is quite normal to have your expenses go out of your reach. The amount you spend can be more than you earn. After all, the luxury of having a credit card has made it a usual thing for people to spend money even before they receive it. However, we often tend to forget that we will have to pay every penny sooner or later. Of course, a high credit card debt along with a bad credit report can affect several areas of your life, apart from finances.
If you are also caught in this loop where you make yourself believe that you will cut your expenses from next month, the month which never really comes, here is a guide for you to stop theorizing and start taking action.
While this is a complete guide, it is up to you how religiously you can follow it and how much you want to cut your everyday expenses.
A Step before the Journey
When it comes to starting saving, the issue with most people is that they wait for a specific time to initiate the process. If the month has begun or is halfway through, you can say that you will do it next month. If the month has just ended, you might already have a significant expense planned for next due to which you cannot execute this plan. We, humans, are never out of excuses. Hence, to follow this plan, you have a task assigned until the arrival of next month to start your process as soon as you are done reading this.
What you are required to do is keep track of all your expenses. Go about your routine and start writing every penny that you have spent. Until you don’t know where your money is going, it will be hard for you to cut down. It will also help you to be organized to complete the following five ways to cut expenses efficiently.
1. Save then Spend
The first thing you need to do when you get your salary is to decide the amount you need to save. Now that you know all your expenses, it will be easier for you to budget and estimate how much can be kept aside. We can never save money because even if we have it left by the end of the month, we will have the urge to spend it. Hence, by subtracting an amount initially, you will have no choice but to stick to the remaining money while also saving.
2. Cash Not Card
The concept of using credit and even debit card is for those who are never worried about their bank accounts being empty. The feel of spending money that you’ve earned is never the same if you are using a plastic card for a bill. When you have cash at hand, you will automatically feel less likely to spend it on items that are of no use. Even if not that, you will develop a consciousness about your expenditures and willingly make them better.
3. Used Items
There is no shame in buying used accessories. From furniture to clothes, thrift stores are full of options that will not only fit your budget but will also be according to your taste. Additionally, these products’ quality is also great, so you don’t have to worry about that. You would be surprised at how much could be saved just by shifting your shopping technique a bit.
4. Food Expenses
We completely understand that food is not a luxury. However, the way we treat it these days and how capitalism has taken over every industry, including food, we should count our consumption as a luxury. Cooking food at home is an excellent way of initiating both a healthy and financially stable life. You don’t have to eat at a restaurant and that too, a fancy one every other day. If you want to counter this by saying that you have a full-time job, start cooking on weekends.
Whether you live alone, with family, or share a roommate, you can take the initiative by starting with something easy and within the budget. You can invite your friends over to not miss the quality time you otherwise would have spent at a restaurant. Additionally, you can be as creative as you want when at home; give it your best shot as you don’t have to give up fun just to cut everyday expenses. Nonetheless, you can always go to restaurants once in a while and use happy hours and discount offers to their fullest.
5. Save Electricity
Lastly, a good portion of your monthly salary is used to pay off your electricity bills. From things as small as lights and fans to power consumers like heaters, air-conditioners, and other big machines around your house, you can save a reasonable amount by taking small steps. Furthermore, it is also not just about your bills but energy consumption too. You certainly don’t want your kids to grow up thinking that it is okay to waste energy and resources.
The Bottom Line
The above five points are just a way of giving you an idea about cutting down your expenses is not always about eliminating the fun from your life. It is more about realizing what is essential. It would help if you prioritized things in a certain manner.
Learn what it is that your life can go on without and what you absolutely need. We are optimistic that by making the right choices and trying your best to stick to a budget, you will cut your house expenses in an ideal manner!