With proper budgeting and expense tracking, you can increase your savings and investments, build your wealth, and prepare for retirement with no hassle at all.
Here are 9 incredible tips to help you to cut monthly expenses (and save more money as well).
WRITE DOWN ALL SPENDINGS AND CUT WHAT'S POSSIBLE
To set realistic goals, you should first know how much you need on daily expenses and monthly utilities.
Record your expenses to determine your priorities and those that can be taken away. When you write them down, it’s easier to see where your money is going and make the necessary adjustments.
FOLLOW THE “INCOME – SAVINGS = EXPENSES” RULE.
Most people follow the Income – Expenses = Savings formula, but this leaves you with what’s left after you spend, which can be nothing at times.
On the other hand, if you follow the Income – Savings = Expense formula, you get to keep a fixed amount every month, which you can allot for your investments. It requires the right amount of discipline, but it’s worth it!
USE BUDGETING APP.
If you’re not a big fan of keeping a notebook to track your expenses, download a mobile app for personal finance management and budgeting like Money Lover.
👉 See how Money Lover's budget works for you.
CUT THE TAKEAWAY COFFEE.
If you are getting your daily cup of Joe from a coffee shop near your office, then you better think about this. Spending an average of $3 a day will cost you $15 a week.
Why not make your own coffee instead? Your office most likely provides free coffee or has a coffee machine. Bring your mug and brew on your own. It will give you the same caffeine kick you need.
"Do I pay $2.50 for a coffee? Never, never, never do I do that," O'Leary tells CNBC Make It. "That is such a waste of money for something that costs 20 cents. I never buy a frape-latte-blah-blah-blah-woof-woof-woof for $2.50." - Shark Tank investor Kevin O’Leary
PREPARE YOUR LUNCH FOR WORK.
Whether you’re getting your daily lunch from a fast food restaurant or a jolly jeep near you, you can cut down food expenses when you bring a lunch box.
You can even follow a diet plan that’s much healthier than the high-cholesterol food you order from fast food chains.
BUY GENERIC INSTEAD OF BRANDED GOODS AT GROCERY STORES.
Do you notice how some people in grocery stores carefully take time and read labels while shopping? That’s because some of them are calculating and comparing products to save more.
It’s time to give generics a try, especially for cleaning products and seasonings. They will give you the same benefit you need at a fraction of the cost.
SPEND WITH CASH ONLY.
Swiping credit cards and debit cards can be addictive. You may not realize that you’ve spent too much until you check your balance or get your credit card statement.
Meanwhile, spending with cash can benefit you in two ways. One, it limits your spending based on what’s in your wallet or your budget. Two, it prevents you from incurring credit card debt.
The rule is simple: If you don’t have the cash, then don’t buy it.
CANCEL SUBSCRIPTIONS 🤔
Recurring revenue is the best source of income for your business. On the flip-side, subscriptions will make you broke. The whole subscription model is designed to take advantage of you being lazy. Most of the subscriptions you have, you don’t need.
Make a note of all of your subscriptions and then cull as many as you can.
APPLY FOR AN AUTOMATED SAVINGS PLAN.
Consider opening an automated savings account in established banks. This automatically transfers a portion of your salary to a separate savings account, making it easy for you to save money.
This automated save-up account also prevents you from conveniently withdrawing cash and spending your money on unnecessary purchases. You can also customize how much you want to save, and whether you want this done every time your salary comes in or just once a month.
Cutting down your monthly expenses can help save and grow your investments. More importantly, it can help you gain financial freedom and independence.