Psalms 128:2 – “For thou shalt eat the labour of thine hands: happy shalt thou be”

 

Cut Expenses And Watch Your Money Grow

Who doesn’t want to save money and see their savings grow? The problem most consumers face is that they will have to cut back on expenses.

Household debt in the U.S. was a record $14.6 trillion for the first quarter of 2021.

The easiest way is to cut expenses and use the money to pay off debt.

 

 

A lot of people are reluctant to cut expenses, as they simply believe it’s too hard or lazy.

The first step to cutting spending is figuring out where the money is going.

We offer a FREE all-in-one budget app right here!

Pull a copy of your bank statements dating back 30 to 60 days. This will show you exactly where your money is going.

 

 

This gives you a good chance to see just where adjustments are needed going forward.

The old-fashioned way to track is to write down every expense as you make it.

If you pay for everything with a debit or credit card, check your statements.

Go through everything you spent money on and determine what you really needed or wanted.

 

 

If you do use cash, be sure to get receipts. Highlight what was a “need” versus a “want” and start the process of elimination.

 

 

Start a budget

Creating a budget doesn’t have to be hard. A budget is a plan for where your money will go.

You’ll be able to monitor and adjust your overall spending based on categories under “needs” over “wants”!

It’s important to set aside money each month toward financial goals. Paying off debt should be a major objective.

 

 

Remember, cutting expenses in order to work towards your debt-free goal should be your priority.

If you do not know how to create a budget, just do this. Write down how much money you make, find out what your fixed bills are (e.g., rent, mortgage , cell phone etc.) and then what are your needs?

What’s left over is your “discretionary” spending.

Discretionary spending does not mean, using left over money to eat out, go to the movies, shopping spree etc.

Be responsible and put some of that money up for savings.

 

 

Re-think monthly subscriptions

Most people have monthly subscriptions for cable TV, streaming services, internet, cell phones, publications, weight loss programs, you name it.

After signing up, we often forget about them. The money comes out of your account every month.

I have a simple fix for this, do you really need it? How often are you using it?

Only you can make this decision, personal finances are each individuals responsibility.

 

 

Don’t pass on unsubscribing to something because they make it hard or it seems like a small expense that’s not worth the trouble to get rid of.

Think of unsubscribing as cutting expenses and lowering your debt.

 

 

Reduce expenses elsewhere

Shop around to see if there are utility providers that offer lower rates to reduce expenses in the home.

You can reduce your electric bill by hanging your clothes to dry rather than use your dryer.

You can turn the thermostat down in order to save on heating and cooling.

Changing to energy efficient appliances is also something you could consider doing.

Making major utility changes can be expensive, but check your state government website.

 

 

One of your biggest expenses is likely housing. The rule of thumb is to keep housing expenses under 30%.

Reducing housing expenses or even downsizing may be easier than you think.

Rent out your home, or a portion of it, as a short-term rental is an option to lower expenses.

One major way to save and experience a mortgage-free life is to build a starter-studio apartment that we offer for FREE as a download.

Adjustments to home and car insurance are another way to reduce monthly expenses.

If you pay both, shop around for companies that will bundle them for a cheaper rate.

Put credit cards away in a zip lock bag, this will help keep you from using them 🙂

Try and use cash instead of credit or debit cards, this will help you realize how much money you actually have.

 

 

Conclusion

One way to drastically cut expenses is to pay off all of your debt. What I did was pay off the largest credit card bill first and work my way down to the least expensive one.

Preparing and eating meals at home can save a lot of money. There’s no better time than now to reduce your debt.

The faster you get rid of debt, the more money you’ll have in your monthly budget.

Putting off a budget will keep you on a hamster wheel!! Stop being afraid or uncertain of yourself and get to work.

Make extra payments on your car or mortgage if you have a note, this will help pay it off sooner and reduce the total amount you owe.

Most importantly, remember, remember to stick to your budget. Spend less and save more 🙂

 

 

DISCLAIMER: I am not a financial adviser. This site is for educational purposes only. It is imperative that you do your own research. I am sharing my opinion from personal research and experience with no guarantee of gains or losses on investments, finance etc.

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