5 Ways to Reduce Your Monthly Expenditure without Causing a Huge Change to Your Lifestyle
by CashOctopus • September 5, 2019
Cutting down on expenditure has always been associated with making major lifestyle changes. However, you don’t always have to make a big change in your way of living before you reduce your monthly expenses and gain some savings. It is prudent to be able to reduce your expenditure without having to make a major transformation because there is a higher chance that you will remain consistent. There are several creative ways that you can explore to reduce your monthly expenses without going through a drastic lifestyle change. Some of these are described below.
1. Buy in bulk.
This is a good way of spending less on the items that you buy regularly. An example of this is the purchase of household groceries that you consume on a monthly basis. If you buy a number of items in bulk, you will benefit from lower prices, thus reducing your monthly expenditure. You should also be keen to shop at stores where the prices are lowest and where they have several special offers on prices. You will still be able to do your monthly shopping, and therefore there will be no major lifestyle change as you save on costs.
2. Sell off your extra items.
If you have items like clothing, shoes, household appliances, and any other similar things that you have not used in years, then it will be wise for you to sell them off at low prices. This will help you to get rid of the clutter in your home, and at the same time it will give you an extra income that can be used to pay off debts. Apart from clearing debts, this extra cash can also be used to pay for utility bills or any other household expense. Any clutter that you cannot sell can be given away so that you remain with a fresh, clean environment. You will have the double benefit of gaining an extra income as well as cleaning out your home.
3. Engage in simple outdoor exercise.
Many common ailments and diseases have been linked to a lack of regular exercise. Engaging in simple outdoor exercise such as walking or jogging can go a long way in saving costs. Firstly, you will be able to save on fuel expenses if you decide to walk rather than drive to places that are nearby. These savings on fuel can become substantial when they accumulate over several months. Secondly you will also be able to save on the costs of paying subscription for the gym. Walking has been known to be one of the most beneficial methods of exercise. Thirdly, the regular exercise will make you healthier, and therefore you will make less visits to the doctor, thus saving on medical costs.
4. Consolidate your debts.
If you have several loans with different banks and licensed moneylenders, it will probably be difficult for you to follow up on the different payment schedules of each debt and pay the instalments on time. This arrangement can also prove to be very costly because each debt has a different amount charged for interest. Consolidating all your debts into one will help you to pay the instalments more conveniently because you will only have one repayment schedule and one interest rate to follow up. This will help you to avoid late payment fees. The interest charged after debt consolidation is also lower.
5. Use energy saving tips at home.
There are several tips that you can use at home to save on your energy bills. One way is to unplug all appliances when they are not being used. Research has shown that electrical appliances still draw some energy even when they are switched off as long as they are still plugged in to the power source. This can increase your power bill by as much as 10%. Another energy saving tip is to purchase energy saving bulbs that can be used all around the house. These bulbs will give your house good lighting at a fraction of the costs of the non-energy saving bulbs. The savings that you make on the energy bills can be used to pay off debts.
Once you begin to adopt any of the above methods to reduce your expenditure, you will begin to enjoy several financial benefits. Some of these are outlined below.
Savings for emergencies
Most people encounter an emergency at some point in their lives. Reducing your monthly expenditure will help to free up cash that you can put into savings for the purposes of handling any unforeseen emergencies. Many times a medical emergency may arise and you may be unable to get access to cash immediately. These savings can be used to take care of the situation quickly without having to go through the process of applying for an emergency loan.
Reducing your expenditure over time will help you to accumulate a substantial amount of funds, which can be invested in profitable ventures that will earn you an extra income through profits. You can take advantage of these investment opportunities and get closer to achieving your ultimate goal of financial stability.
Promotes good financial habits
Once you get into the habit of reducing your expenditure, you will also be able to get rid of the negative habit of overspending and financial indiscipline. This is a good thing because you will be able to stick to your budget as well as build a good credit rating over time. Being disciplined in your finances is key to achieving success both in business and in your personal planning.
Reducing your expenditure will put you on the road to becoming debt-free sooner rather than later. This is because you will be able to grow your savings and pay off a lot of your existing debt. You will also have the alternative of using your savings to meet some financial obligations rather than choose the option of taking on more loans.
As a conclusion, you can use any of the above tips to reduce your monthly expenditure without having to change your lifestyle drastically. You will discover that the benefits are definitely worth the effort.