4 ways to reduce your expenses

Saving money is an art, and a necessity. It is, whether we like it or not, an essential aspect of an individual’s personal finance, and it is necessary to enable one’s secure financial future. This being said, not everyone has the same financial capabilities, and the “simple” act of saving is inaccessible and a very challenging feat to many.

Low income, limited access to high-paying jobs, unexpected expenses such as medical emergencies or car maintenance, coupled with an ever-rising cost of living will hinder one’s ability to set aside funds.

“Don’t spend money” in these circumstances is not a piece of advice, but a rather paternalistic approach to a very sensitive topic. With that in mind, and a focus on the fact that it won’t be easy, there are some practical ways to reduce expenses here and there and succeed in saving money over time.

1. Needs first

Needs vs Wants. When it comes to managing your expenses you’ll have to ask yourself how you distinguish a need from a want. It might be difficult to do so, no doubt, but think about it as a “reprioritization” of your needs over the wants. Create a budget, or fish out the last one you’ve worked on, and identify necessary expenses such as rent, utilities and food. Once these expenses are covered, you can decide whether or not you can afford to sprinkle in some extras, such as recreational spending and shopping, within reasonable limits.

2.Trim monthly bills

Cutting down on bills can yield significant savings over time. Water, internet and electricity do add up. You might want to look into state-funded options, depending on where you live you might be able to apply to bonuses or discounts. Switching to more energy-efficient appliances could be an option as well, consider using comparison websites to find better deals. Cancelling or downgrading certain online services can result in substantial savings. If money is tight and you have a gym subscription you might consider going there to shower instead of doing it at home. If you’re looking at ways to cut electricity and internet bills, some cafeterias offer “monthly subscriptions” that cover coffee and other beverages. If there is one next to your house and you work from home, you might consider working there during the day. (Here you’ll find some money saving tips and challenges)

3. Meal prep

Food and food-related expenses add up quickly. It is however possible to reduce costs without giving up nutrition or taste. Weekly or even monthly bulk meal prep involves preparing meals in advance and storing or freezing them for later use. Having a quick dinner or a quick lunch will help you avoid impulsive “hungry” purchases and can definitely limit the amount of take-out orders. There are plenty of resources online, and it won’t be hard to find recipes and tips on how to prepare bulk meals and prepare them. As an example, two subreddit on Reddit are dedicated to meal prep and cheap meals: r/EatCheapAndHealthy and r/MealPrepSunday offer tips and grocery lists ideas. Aside from that, shopping with a predefined list, comparing prices and using coupons can help you slash the bill and make cost-effective choices. These strategies need to be implemented into a routine in order to be effective, but if you succeed at incorporating them into your everyday life they’ll significantly impact your financial situation.

4. Optimise Transportation Costs

Transportation expenses, such as gas and car maintenance can eat up your budget very fast. Ways to optimise these costs are solutions such as carpooling and ride sharing, public transportation, and alternative transport modes such as biking or walking. Switching to a working schedule that allows you to work from home 2 or 3 days per week will positively impact your expenses as well, cutting down on gas and maintenance costs.

Saving is a challenge, however, by implementing these strategies and by staying focused, it is possible to reduce all unnecessary expenses and to make slow, yet steady, progress towards your financial goals. Prioritise what you’re looking for, cut out unnecessary costs, optimise what you already have and learn to rely on people and on the community you live in. Stability is achievable, and will be the first step towards a secure financial future.