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10 Simple Ways to Cut Your Monthly Expenses

| November 03, 2014
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Reducing your monthly expenses can help you to both maintain your desired budget and put more money into future investments. Here are several easy techniques that can be done to lower your required spending:

(1) Create a smart budget and eliminate extraneous spending.

          After creating a budget, many people find that their money is going to items that they don't use. Creating a cash-flow budget plan based on your gross pay is helpful when trying to get a handle on your finances. Plan to save 10% to 13% of your gross pay for retirement. All of your debts should not exceed 36% of your gross pay.

(2) Consolidate your student loans.

          If you have high interest rates on your student loans, spend the time to find a good loan consolidation option and it will pay off every month.

(3) Request a credit card rate reduction. 

          If you have substantial credit card debt, ask your credit card company for a rate reduction. If they deny your request, try to get a 0% balance transfer onto another card. The key is to stop putting money onto the credit card before your finances are stable again.

(4) Try the $10 by 10 equals $100 plan.

          Overall, it is easy to cut $10 off of 10 different areas in which you spend such as clothing, gas, food, utilities, and entertainment. By making this a goal, you can save an extra $100 without much effort. 

(5) Reduce food costs or cook your own meals at home.

          Eating out can be a huge budget-buster for lots of families. But many chain restaurants offer coupons on their websites or deals through social media sites. Be proactive about looking into discounts, or consider preparing meals in advance at home and then freezing them for easy cooking later. 

(6) Eliminate services.

          Consider cutting back or eliminating household services such as landscaping and housecleaning and instead, put aside time each week to do them yourself (or delegate them to a family member).  

(7) Keep the tires on your automobile inflated properly. 

          Regularly checking the air pressure in your tires once a month can improve gas mileage by one percent for every two PSI of air you are able to add to your tires.

(8) Pay with cash.

          Those who pay using cash are estimated to spend approximately 20% less than those who choose to pay with a debit or credit card. Using cash increases your awareness of exactly how much you are spending, causing you to become more contemplative and usually resulting in less spending. 

(9) Bargain hunt for the best deals and prices.

          Always try to get at least three different options or bids when preparing to undergo a large home repair or embark on a costly vacation. There are many websites that offer ways to save a lot of money on your travel or home renovation budget.

(10) Use public transportation and buy non-perishable items in bulk.

          If you have the option, you could save several dollars on gas and maintenance by choosing to ride the bus or subway to or from work. Also, try looking at the cost per unit of items and choose the best deal. Often, this means choosing the bigger, bulkier package- but it also means you won't have to buy it again for many months. If you do this with all non-perishables in your home (not just food), it will add many saved pennies to your bank account.  


Using just a few of these options can help to open up some room in your budget and help you to reduce your debt. Please visit for more on financial investing. 

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