Personal finance might seem to cover only the big stuff – student loans, house mortgage, income taxes. However, in this case, small daily expenses matter, as they add up to significant amount of your spending. By cutting seemingly negligible costs, you can earn tremendous cumulated savings and avoid unnoticeable drain on your bank account.
Here are a few ways to cut spending on your monthly expenses:
Buy Refills and Refillables
By purchasing refillable products, you can save up on a lot of consumer goods. For example, using refillable bottles would encourage you to get free tap water instead of getting ready-to-buy packaged water. Other goods such as handwash, laundry liquid, and cleaner also come cheaper in refill than in regular packages.
Set Up Limits
Want to curb the urge to shop? Set up a credit card limit and a spending cap to ensure you don’t go past a certain amount. You can go even further by setting up limit per transaction and daily card withdrawal limit.
Pay Your Debts in Full, Right Away
When it comes to credit cards, always strive to pay the bills in time, in full amount to avoid extra surcharges. You can do this by opting for automatic bill payment with your bank.
Re-evaluate Your Current Utilities and Services
You indeed need electricity, phone and entertainment plan, but are you sure your current plan brings the most value for money? Contact the customer service to see if there is any way to reduce the bills without losing the essential features that you need. Chances are you might not actually need that second Netflix screen!
Go for Home Brands
If you don’t have any preferred brand for a household product, you might be better off purchasing the more affordable home brands – they can do the same job for less dollar per gram.
Walk or Ride a Bike
Bus ticket fees might seem inconsequential, but you’ll be surprised by how much it costs when you walk or bike for a change. This might not be applicable for long commutes, but this would still be great for going places locally. Bonus point: walking and biking are great exercises. Who says you need gym membership to stay fit?
In buying groceries and other household goods, opt for discount retailers and thrift shops – the competitive price will lift the burden off your wallet.