Last year was by far my greatest financial struggle. I was diagnosed with depression and anxiety — that eventually made it too impossible for me to continue working in a very toxic environment. So, I had to quit my job.
I was drowning in debt. Yes, sure I was doing some freelance work but still, that wasn’t enough for me to get ahead and get my finances and debt in order.
I knew that the only way for me to make the ends meet every month is by making major changes in my spending habits.
I needed to find a way to cut our spending.
I knew I had to do it but the problem was I didn’t know where to start. Looking at our expenses every month and figuring out what to cut was too overwhelming.
Yes, it did take a little extra effort to figure out how to reduce our expenses but it was all worth it.
Truth be told, it was even one of the greatest decision’s I’ve ever made.
Whether you want to reduce your debts or save more money or whatever your financial goals may be, reducing your spending will definitely help you get there.
And if you’re wondering where to start, here are 5 ways to cut your monthly expenses to save money…
Get your finances organized
Whatever your financial goals are, getting your finances organized will help you get there.
Truth be told, I was never good with money. I didn’t bother to track my spending, or how much debt I was in.
Long story short, my finances were pretty much all over the place.
Now, after having to quit my job and taking a hard look at where I was standing financially (and I tell you, it was pretty bad) I then knew how my spending habits and being disorganized has greatly affected my finances.
It buried me in this deep financial hole — a hole that I’m still trying to get out of.
So, don’t make the same mistakes as I did. I tell you, regardless of what your financial situation is, whether you’re buried in debt or you’re living paycheck to paycheck, getting your finances organized is a must.
I find that one of the benefits of doing this is having the chance to see opportunities to improve my finances, what I needed to do to achieve my financial goals and what areas I can easily cut to help me save money.
So, make the time to sit down and start doing this immediately. Your finances will thank you for doing it!
Create an effective and realistic budget
I know how annoying this may sound right now. After all, for most people living on a budget is not at all fun.
But trust me, if you want to control your spending and better manage your money, creating a budget is the best way to start.
Back when I was working, I always dreaded hearing the word budget — I always thought that I wasn’t making enough money to even create one.
And that is where I was wrong. Regardless of how much money you’re making it is possible to use a budget to set limits.
Giving every dollar a job will not only help you control your spending, but this will also help you make better money decisions.
It will help you focus more on your financial goals and avoid any unnecessary spending on things that will not help you reach those goals.
So, take the time to sit down and create a very detailed budget, be sure to be very specific with your details and categories.
Try a no-spend day
I have always speculated the benefits of having a no-spend day, or if there are even any benefits at all.
But after trying this myself, I found that having a spending freeze can be very beneficial for your finances and spending habits.
You see, I had a lot of bad money habits. Some of it is being an impulse buyer and the love for eating out. I find it very difficult to control my spending (even though I knew I needed to)
And having a spending freeze has helped me overcome and break those bad habits.
It helped stop my impulse spending since I needed to wait for the challenge to be over before I can make the purchase, giving me enough time to think whether or not I should even make the purchase at all.
It basically helped me make better choices of how I spend my money.
I know participating in a no spend challenge may sound difficult — but it really doesn’t have to be.
You just have to identify why you want to have a no–spend day. What’s your end goal? Do you want to save money? Cut down your monthly expenses?
Determine your reason for taking part in this challenge and use that end goal as your motivation to do it.
Cancel those subscriptions that you’re not using
A lot of people are guilty of this — myself included. Whether we admit it or not, we are often paying for at least one subscription that we are not really using and haven’t used in a while.
May it be a gym membership or a streaming service. We are often just so used into paying them that we don’t even think if they are still worth paying for.
So, go through your statements and look for those subscriptions and ask yourself if they are really still worth paying for. If not, then that’s one more area in your monthly expense that you can easily cut.
Plan your week
As I mentioned above, I used to love eating out. That was definitely one area where I was spending too much.
And the reason for this is that I never had any clue as what to make for dinner. And after a long and stressful day at work, I’m just too tired to even think of what I should eat — so grabbing fast food was always my go to.
We often think that doing this is not really costing us, especially if the upfront charges are low.
But what we don’t realize is those upfront low charges can easily add up.
So, take the time to preplan your weekly meals, you can even cook some of them in advance and you can just pop them in the microwave.
Cutting your spending doesn’t have to be difficult and painful — just remember to start small and keep pushing yourself. Recognize the reason why you’re doing this and focus all your attention to your end goal.
Remind yourself that they are a lot of easy and simple ways for you to cut your spending and save money! You can do this!
Do you have any tips and tricks on how to reduce spending to save money? Let me know in the comment section below or send me an email, I would love to hear from you!