It’s very easy to inflate your lifestyle. An added subscription here. A small weekly purchase there.
But it’s much harder to deflate your lifestyle. That is, to cut back on the level of consumption that you’ve become accustomed to.
If you’re able to do it though, reducing your expenses will have a lasting impact on your finances. For every dollar you are saving, you are that much closer to building financial security.
10 Ways To Reduce Your Expenses TODAY
- Cook at Home – Instead of eating out, eat your meals at home. It’s cheaper, healthier, and more engaging. And don’t just cook meals at home, enjoy your treats like coffee or dessert at home as well.
- Don’t Buy It – It doesn’t matter what “it” is. Just don’t buy it today. If you didn’t have that piece of clothing, tech gadget, or home living product before, you probably don’t need it now.
- Adjust Your Thermostat – Embrace warmer summers and colder winters with your thermostat. Even small changes can save you money on your monthly energy bill.
- Update Your Cell phone Plan – Go online or call your cell phone provider to see if they have a more cost effective plan available. Many people can shave $10-$20 off their monthly bill.
- Stop a Streaming Service – Try canceling your least used streaming service. We’ve personally cut out Netflix and Hulu after we realized we already have enough entertainment to consume.
- Refinance a Large Debt – With interest rates as low as they are, it’s worth seeing if you can refinance a large debt like your home. Although I prefer being debt free, reducing your interest rate can make debt more manageable.
- Pay Down Debt Principal – Making extra principal payments on debt also decreases your expenses. As interest payments are technically an expense, the more principal you pay down, the less interest expense you pay over the life of your loans.
- Update Your Insurance – Check to see if you can get a better deal on your home, life, or auto insurance. You can find a more competitive provider, or maybe change the terms of your policy.
- Buy Generic Brand – If you do have to buy something today, see if you can buy a generic version. For most products, buying a francy brand name only adds additional costs.
- Move Your Investments – If you are investing in mutual funds through your retirement program or other investing platforms, you might be able to reduce your fees. Moving to a low cost index fund can save you thousands of dollars in fund management expenses.
This post is Day 4 of 21 Days of Simple – Join me today in reducing an expense in your life.