What should you do when a job is lost or a paycheck is reduced? What should you do to increase your financial margin to help pay off debt, save for retirement, or increase your generosity?
For many facing these scenarios, part of the answer is to quickly reduce expenditures. What are some ways to do that? Here are a few suggestions:
1. Don’t eat out. This includes delivery services. The amount you spend on a meal from a restaurant is usually significantly higher than making a meal at home. Part of this cost comes from the type of food we purchase—steak usually costs more than a nice peanut butter and banana sandwich. And part of the increased expense goes to pay the service providers. So, if you are in a pinch, ditch the restaurant food.
2. Buy generic and buy in bulk. Name brands bring about a level of trustworthiness. But they also bring about a higher price tag. One of the ways you can start saving money today is by abandoning the name brands and opting for generic, store brands. The typical quality of a store brand is comparable to name brands, but the cost is less. Bulk purchasing also saves money. Save money now by buying generic and buying in bulk.
3. Cut the cable and reduce your entertainment subscriptions. You probably have several entertainment services. Save money by getting down to one entertainment option. Typically, cable is one of the more expensive entertainment options, so I recommend that it be one of the first options on the chopping block. Reduce your entertainment subscriptions, spend more time outside, and save money.
4. See if refinancing your mortgage makes sense. Interest rates are low. For some, it may be worth refinancing your mortgage in order to reduce your mortgage payment. Granted, I don’t want to see your mortgage stretched out further, but I really don’t want to see you in a place where you’re unable to put food on the table. So, if you are in a difficult spot, this may be an option for you.
5. Create a budget. Most of us let money fall through the cracks. We don’t know what we should spend and have no clue how much we have already spent. This is a problem. For those needing to save money (and really everyone else), a budget is a must. Keeping track of your money guards against waste. You may find that you actually have more money than you realize.
If you need to save money right now, you have some moves to make. Quickly pushing down your expenses is possible. You can make some decisions today to help you save money.