Contents
Expense-Cutting Basics
How to Track Your Spending
Money-Saving Websites and Techniques
How to Cut Grocery Expenses
How to Cut Utility Expenses
How to Cut Home and Garden Expenses
How to Cut Clothing Expenses
How to Cut Entertainment and Dining Expenses
How to Cut Transportation Expenses
How to Cut Phone and Computer Expenses
How to Cut Health and Beauty Expenses
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- Track your spending to see where your money is going
- Save money on groceries, utilities, and transportation expenses
- Explore websites and company plans designed to save you money
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Expense-Cutting Basics
Consciously or not, you make dozens of decisions each day about how you’ll spend your money. You opt to eat breakfast at home, or you grab a pastry and latte on the way to the office. You choose to drive, carpool, or take public transportation. You decide to pick up a few books and magazines at a bookstore instead of a library. Most people never stop to consider the cumulative effect of these daily decisions, but choosing unwisely can add up to serious debt, stress, and financial instability. This guide breaks down everyday expenses in a variety of categories so that you can see how they add up—and then find solutions for minimizing them.
Five Reasons to Cut Everyday Expenses
A more deliberate approach to spending can pave the way to financial freedom and security. In particular, setting aside money can help you:
- Simplify your life: Having fewer bills to sort through and pay each month is a major benefit of cutting back on household and other routine expenses. It reduces some of the stress associated with staying on top of mounting financial obligations and provides the peace of mind that comes with knowing you’ve got things under control.
- Pay down debt: Consumer debt has reached unprecedented levels in recent years as more Americans become saddled with high-interest credit card debt and fail to build up substantial equity in their homes and cars. Spending less on everyday items can free up cash to pay down mortgages, car loans, credit card balances, and other debts that keep you from getting ahead.
- Prepare for emergencies: Scrutinizing purchases carefully and cutting expenses altogether can give you extra money to sock away for inevitable rainy days.
- Spend where it counts: Frugality isn’t about dep-rivation. Mild penny-pinching here and there can add up to a big amount of money that you can then spend on something larger, such as a kitchen remodel or a much-needed vacation.
- Save for retirement: The uncertainty of government- and employer-sponsored pensions means that many people have to fend for themselves with disciplined contributions to individual retirement accounts. In the face of high housing, healthcare, and other costs, economical everyday spending can help you build a nest egg.
Key Areas of Everyday Expenses
Most everyday expenses fall into the following product and service categories. After this quick overview, later sections of this guide provide specific tips for cutting expenses in each category.
Transportation
The average American spends more than $8,000 per year on vehicles—in some cases, 15–20% of take-home pay. High gas prices, insurance fees, and maintenance expenses, can amount to a huge financial burden. Even people who rely on public transportation to get around have room to
reduce expenses.
Phone and Internet
Comparison shopping is your best bet when it comes to phone and internet expenses. It takes a little time to research various service providers and plans, but the effort pays off in saved overage fees, roaming charges, and other costs.
Entertainment and Dining Out
Volunteering with arts organizations can help you save on entertainment expenses. Using a bit of restraint when it comes to appetizers, desserts, and drinks when dining out can go a long way, too.
Groceries
There is an art to grocery shopping that begins with diligent meal planning and coupon clipping long before you leave the house. Simple tips can leave you with significant checkout-
aisle savings.
Health and Beauty
With prescription drug costs on the rise and a flood of high-priced beauty serums beckoning consumers from the shelves, managing personal care expenses can be tricky. But putting in a little research and organization time before heading for the pharmacy or beauty-supply shop can give your wallet some relief.
Clothing
Overspent consumers continue to pay exorbitant prices for brand-name clothing that can date quickly and often requires expensive dry cleaning and alterations. Even self-proclaimed thrifty shoppers waste big bucks with so-called bargain-hunting: buying something you don’t need simply because it’s on sale is just as wasteful as overpaying for something you do in fact need.
Home and Garden
When it comes to the house and yard, DIY is the way to go. You can cut significant dollars out of your household budget by making your own cleaning and maintenance products and doing the work yourself.
Utilities
Many people think of their utility bills as fixed expenses that they can’t control. But simple tactics, such as switching off the lights when you leave a room and being aware of the length of your showers, can reduce your monthly bills.
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