6 Ways to Reduce Monthly Costs

Financial concerns are unfortunately common among people of all ages. Many people live paycheck to paycheck, and they have minimal savings to pay for emergency expenses. Others are living in the red, relying on credit cards to fund their lifestyle, and charging up huge outstanding balances. These types of financial experiences can result in high debt levels, low savings levels, considerable financial risk and unnecessary stress. If you are looking for a way to turn things around, you can start by lowering your monthly expenses. By implementing these important tips fully, you may be able to drastically reduce your monthly expenses.


Shop Intelligently

Many people have expensive shopping habits that are unfortunately wasting a lot of money. For example, you may run to the store to make impulse buys frequently. In most cases, you may purchase item that are seldom or rarely ever used, and you may also pay more for the item than you would if you had waited for a sale or coupon to be available. When possible, always sit on a purchase for a few days to ensure the item is needed. Then, explore more affordable options to by the necessary item, such as by using coupon codes or waiting for a sale.


Make Money from a Secondary Job

There are many side jobs you can do that will make you additional money. You have online investing sites where you can invest as aggressively or as conservatively as you want. You can donate plasma or blood and make $40 dollars a week. You could become a Lipsense distributor and sell lipstick to your friends and family. You could even work from home as a customer service rep and set your hours for after your primary job.


Focus on Food Expenses

The cost of food can be a true concern in many homes. You may stress out about how high your grocery bill is, and you can easily make a few changes to improve your budget in this area. First, avoid going out to eat except for very special occasions. You can usually buy several days’ worth of meals for the amount of money you will spend on a single restaurant meal. In addition, shop for your groceries with coupons, and always look for special offers in stores. Shopping with a grocery list can also help you to avoid making impulsive buying decisions.


Choose More Affordable Housing

Your housing expense is largely comprised of your monthly rent or mortgage payment. It may also include your property taxes and insurance amount as well as utilities, commuting cost, HOA dues, maintenance needs and more. A larger and more expensive home generally is more expensive in each of these areas. Choosing to live in a smaller home can help you to save money in each of these areas. Explore affordable housing options in your area, and make the decision to downsize for financial savings.


Pay Down Credit Card Debt

Credit cards may seem like a lifesaver when you have unexpected expenses and no other way to pay for them. They allow you to put your expenses out of mind to deal with at a later date. However, while you take your time paying down balances, your balance is accruing interest. In fact, you may be paying ten to 20 percent or more in interest charges on your debt each month. By paying down credit card debt, you can reduce the amount of interest you pay to creditors each month. Reducing debt can also improve your credit rating, and this means that you may qualify for more affordable financing in the future.


Shop for Lower Insurance Premiums

Insurance is another area of concern for many homeowners. You may pay premiums for various types of coverage, including health, life, auto and property coverage, to name a few. Insurance companies can change rates over time, so the best idea is to compare insurance quotes for your different types of coverage on an annual basis. In some cases, you can identify financial savings that you can begin enjoying immediately.
As you can see, there are several significant steps that you can take to reduce overhead on a regular basis. By doing so, you may free up a substantial amount of money that could be used for savings or debt reduction, and both of these options could ultimately improve your financial health over time. Analyze your budget today to determine the best strategies that you can use to reduce overhead.

Article written by

Kevin Faber has been in the commercial finance and banking industry for most of his professional life. He graduated at UC Davis with a B.A. in Business/Managerial Economics. His experience in credit analysis, finance, and management led him to be the founder of Silver Summit Capital. He enjoys working in the financing industry and building connections with industry leaders.

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