Cutting Expenses: Creative Ways to Save More Money

We live in a world where most people expect instant gratification. If you want something, you go and get it. While there are certainly benefits to having this type of attitude, when it comes to purchasing, instant gratification encourages impulse buying. That's a great way to find yourself spending more money than you should.

It's one of the primary reasons many people find themselves drowning in a sea of debt. Changing your habits can be difficult. However, the following methods of cutting expenses and creative ways to save money will help you build the life you want.

Create Your Budget

You can create a budget on paper, using an app, or even on a spreadsheet. It's whichever method you find most appropriate. Simply write down the total of what you earn a month then list all your expenses. You'll find it easiest to do this by looking at past bank statements. Once you've got a list of expenses you'll be able to see if you're spending more than you earn.

Start Cutting Expenses

It's not creative, but it is essential. Take a look at all your expenses and start reducing them. Eliminate any monthly subscriptions to services you don't use. Consider changing your streaming subscriptions to a lower version which will cost you less. You also need to look at the subscriptions you can't do without, such as your energy and insurance bills. Shop around to get a better deal and you could save a significant sum.

Don't Spend

The no-spend challenge is becoming very popular for two reasons. The first is, if you're not spending you're saving money. The second is that it can actually be a lot of fun. Start with a day and you can progress to a weekend or even longer. Simply tell yourself you won't spend any money for the set period. There are plenty of free things to do, such as board games, walks, and even curling up with a good movie.

Switch To Cash!

This will feel strange as most people are increasingly relying on debit cards and smart wallets. However, switching to cash will put you more in control of your finances. It only works when you create a budget. This will give you set amounts for food, entertainment, clothes, etc. per week. Your bills can still be automatically paid from the bank. Once a week, draw out the cash you’ve allocated yourself and put the relevant amount in each envelope.

You can only use cash to purchase the specified items and you'll find you are much more careful about what you're buying. As part of this you can try the 'save your change' challenge. Simply put all the coins you receive of a specific denomination or less into a savings pot. At the end of the year, count it before you bank it. You'll be amazed at how much you've saved.

Get A Side Hustle

This is a great way to drastically cut your expenses. Most people can't easily pay off loans, even after budgeting, etc. An easy way to clear off all your debts is to start a side hustle and use the money you earn to clear your debts. Pick something you enjoy doing and do it when you have free time. You'll need to be disciplined in your approach but it can help pay down your debts and drastically improve your financial situation in a surprisingly short space of time. You never know, your side hustle may eventually become your main job!

Stop Buying New

You don't always need to buy new. There are plenty of great second-hand pieces of furniture, clothes, and other household accessories that can be bought used. Simply evaluate what you really need from the purchase and buy it second-hand. You'll find plenty of adverts in local stores and online. Additionally, before you replace something with a new version, ask yourself if you really need to. Most of the time the answer is no.

Maintain Your Home

A dripping faucet can be annoying when you're trying to sleep. However, it can also be costly. Even a small drip can make a noticeable difference to your water bill. Regularly check your home for leaks and fix any you find.

Alongside this, you can save money by selling your old appliances and replacing them with new energy-efficient ones. Just make sure the saving is more than the additional cost of the new appliances.

Plan Your Meals

Planning your meals in advance allows you to buy the ingredients you need and nothing else. It reduces the cost of your weekly shop and the likelihood of you snacking. That means it's healthy for you and your wallet.

Summing Up

Once you start cutting expenses and saving money you'll find it's a habit that you enjoy. You're likely to see plenty of other opportunities to save yourself money and save for a brighter future. These tips will help you get started!