5 Practical Ways to Cut Expenses

5 Practical Ways to Cut Expenses

March 25, 2020
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5 Practical Ways to Cut Expenses

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Looking to trim down your monthly expenses and save some cash? Learn five practical ways to cut expenses each month today.

If you have bills that are piling up, but not enough income or money in the bank to cover them, you must cut back on your expenses.

It's a common scenario, one that leads to growing debt – with about 63% of Americans saying that they want to start saving!

But how do you start?

Here are some tips and tricks to reduce your monthly expenses and avoid slipping into a more serious situation with debt.

5 Smart Ways to Cut Expenses

Reducing your expenses may not be easy, especially if you are accustomed to a certain way of life. But once you get started, and you start seeing the results, it's easier to stick to.

To start, here are five ways you can cut your expenses.

1. Consolidate Your Debt

The average American family has over $8,000 in debt, and if you are carrying debt, your monthly interest payments are likely contributing a lot to your costs.

If you consolidate your debt, you'll have a lower overall interest rate, and one monthly payment instead of several. Consolidation can make it possible to get out of debt faster and save money in the process.

2. Sell A Car or Use Public Transportation

If you have car payments that are exceeding your budget, consider trading them in for a less expensive car or selling it altogether. Using public transportation, if it's an option, can also save money on gas, tolls, and maintenance.

3. Watch Your Entertainment Expenses

We all love to be entertained: dining out, movies, and attending events. There are plenty of ways to stay entertained at a reduced cost. Some simple ways you can save money include:

  • Free local community events
  • Discover new parks to visit
  • Many museums offer free or reduced admission on certain days. Some libraries even loan museum passes, with advance notice.
  • Take advantage of your local library for movies and books, instead of streaming services

Cell phone bills can often be reduced if you speak with your carrier and explain that you need to reduce costs. You may be able to negotiate a temporary or permanent discount on your current plan.

4. Trim Your Grocery Budget

One of the ways that people save money first is by turning to their grocery bill because it's an easy place to make a difference. Simple changes like switching to store brands, using online coupons, rebates, and shopping sales will all add up when you go grocery shopping. Buying in bulk can help too, for certain items.

If you're ambitious, you might even try planting a garden and growing vegetables!

5. Re-Evaluate Your Insurance Policies

Insurance costs can be a huge expense. If you haven't reviewed your insurance costs in a while, you may want to consider reviewing your coverage. Speak with your insurance agent to see whether updating your policies might help save money – they can provide some options on what might be the best choice for you and your family.

Cutting Expenses: You Can Do It

There are many ways to cut expenses and several areas that you could slash. Take a look at where you're spending most of your money and start there.