Budgeting Tips – 7 Expenses You Can Cut Out Right Now To Save Money
Looking for budgeting tips? Here are 7 expenses you can cut out of your budget right now to save you money and improve your budget today.
Saving money doesn’t always feel like fun but when you do it successfully it feels AMAZING!
And no it doesn’t need to be painful.
The fact is if you aren’t in a position to increase your income significantly, you can realize a significant savings in many areas of your finances with a little work.
Just a little sacrifice in several areas will lead to more money in your bank account and it will be so worth it!
I mean, all of us would be happy with having more money in the bank right?
As Benjamin Franklin once so wisely said: beware of little expenses; a small leak will sink a great ship.
Here are 7 real ways you can save money each month by cutting your expenses in several areas:
# 1 – Health Club membership.
How often do you really use your gym or health club?
How much does each trip cost you?
If you’re paying $75/month and only use it three times a month, you’re paying $25/visit.
Could you stay at home, use your running shoes, a jump rope, and some second-hand dumbbells, and get the same results?
It all comes down to your value.
I know this was one of the first expenses I dropped when I looked over my budget as I was paying $56 per fortnight ($112 per month –gulp!) and not going nearly enough to justify that expense.
# 2 – Entertainment.
Taking a family of four to a movie can cost $40 or more, and that doesn’t include the incredibly over-priced snacks.
Compare this to a streaming service like Netflix will only set you back around $10 per month, and you can watch all the movies you can fit into your schedule.
Not to mention the fact that snacks are less expensive at home, too.
In case you haven’t guessed I’m obsessed with Netflix.
This is such a simple way to save money every month.
# 3 – Transportation.
Depending on where you live, public transportation can be much less expensive than driving, especially if you normally pay for parking.
If public transportation isn’t an option, you can always share a ride if a coworker lives close to you.
Each day you share with another person will save you roughly 20% on your gas expense.
Add another person into the rotation and you’ll save 40%
- Are you certain you have the best auto insurance rate? Have you checked lately? The difference in rates charged by different companies can be staggering. It doesn’t heard to check!
# 4 – Utilities.
Adjusting your thermostat by a one degree will lower your energy bill by 3%.
Dropping your thermostat by three degrees in the winter and raising it three degrees in the summer will save nearly 10%!
Wear a little less in the summer and dress more warmly in the winter.
You’ll hardly notice the difference and save quite a bit.
# 5 – Morning coffee.
It’s true that coffee always seems better when you purchase it at the fancy coffee shop, but is it worth it?
How much is it costing you each year?
If you buy your coffee on your way to work, the numbers really add up.
- $4 x 5 days/week x 52 weeks = $1,040 / year. Investing that money at 8% would result in over $50,000 in 20 years. Isn’t it funny how we don’t always think about how those little things add up? Would you rather have $50,000 or a cup of coffee?
# 6 – Prescription medication.
There are many ways to save money on prescription drugs.
- Switch pharmacies. The prices can vary tremendously.
- Purchase your medication online. If you have a long-term prescription, you can save a lot of money by ordering your medication and having it delivered to your door. It’s much more convenient, too.
- Ask your doctor for a generic. Generics can cost up to 70% less for the same medication.
- Become healthier. With healthier habits, you may be able to stop taking many of your medications, with your doctor’s approval.
# 7 – Food.
Eat at home more often.
If you’re tired of eating the same things, buy a cookbook with enticing recipes.
Or search the Internet.
I’m not kidding when I say there are hundreds upon thousands of recipes online.
Eating out can be super expensive, and the experience only lasts an hour or so.
Why not invite a few people over instead and show off your work-in-progress culinary skills?
If you stick with it (and are good at following recipes) you can eat restaurant quality food at home with a little practice.
So there you go – now you have 7 expenses that you can cut down on right now with minimal stress.
But this is just the tip of the iceberg.
Are there any other areas that you could cut back or eliminate?
Remember a few simple changes can result in big savings.
In the end, saving money doesn’t have to be painful.
Just take a good honest look at your finances and do your best to eliminate the expenses that provide the least value to you.
Save money and money will save you.
A simple fact that is hard to learn is that the time to save money is when you have some. Joe Moore
It’s not how much money you make but how much money you keep, how hard it works for you and how many generations you keep it for. Robert Kiyosaki
Don’t save what is left after spending; spend what is left after saving. Warren Buffett
If you wish to get rich, save what you get. A fool can earn money but it takes a wise man to save and dispose of it to his own advantage. Brigham Young
You must learn to save first and spend afterwards. John Poole
You must gain control over your money or the lack of it will forever control you. Dave Ramsey
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Before you go…
- If you are wanting to create new great money babits, I have a great free habit tracker here for you.
- You can check out my list of favorite must-read money books here.
- If you want to know 365 excellent savings hacks check out THE SAVINGS HACKS BIBLE.
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