7 Ways to Cut Your Expenses in Half | Save Money Quick

here are seven tips on reducing expenses so you don't have to worry about your money that much number one reduce your use of electricity you must heat or cool your home as well as provide power for lights and other appliances however there are numerous ways to reduce your utility bills approximately 12 percent of the average household budget is spent on electricity there are some immediate things you can do to reduce those costs turn down the thermostat don't leave the computer on don't run the dishwasher unless there's a full load hang the laundry instead of running the dryer look around to see if there are any lower cost utility providers especially for fuel other steps are nearly as simple but you'll need to go to the hardware store install a programmable thermostat and switch to energy efficient light bulbs many electricity providers connect to their customers accounts to show them how to save money other methods of saving money require an initial investment but will save money in the long run invest in energy star appliances and replace your water heater changing your heating and cooling system can save you money while also benefiting the environment major utility changes can be costly but check your state's government website for more information many offer programs to assist customers in switching to more energy efficient heating systems maine for example has a one thousand dollar rebate program for homeowners who switch from oil to heat pumps as well as a low interest loan program to help cover the cost number two examine your subscriptions again most people pay for cable tv or streaming services the internet cell phones publications weight loss programs and so on on a monthly basis you probably don't think about it much after you set it up but the money is taken out of your account every month now is the time to examine the situation more closely consider the following questions how often will i use this is this something i really need is it possible for me to live without this when you cancel your subscription go through your emails and unsubscribe from any newsletters or regular advertisements sent by that source number three begin keeping track of your spending habits the first step in reducing spending is to determine where the money is being spent spending 30 or 60 days tracking will most likely be eye-opening who knew you were spending so much money on your kindle or egg mcmuffin habit you might be surprised at how much you've spent on certain items barker said but this gives you a good chance to see where adjustments are needed in the future the traditional method of keeping track is to write down each expense as you incur it many cost cutters are deterred by this inconvenient exercise fortunately we live in the 21st century and technology can take care of our writing down check your statements if you pay for everything with a debit or credit card examine all of your purchases to see what you truly required and what you considered wants printing out the statement and using different colored highlighters or pens to park different types of spending is one way to make things clear alternatively write them down under the headings needs and wants on debit card accounts some financial institutions even have a graph or pie chart with spending categories that shows where your money went if you do decide to use cash make sure you keep your receipts number four reduce your housing costs housing is likely one of your largest expenses people earning less than fifty thousand dollars per year spend thirty six point six percent or more of their income on housing this is higher than the thirty percent rule of thumb recommended by financial experts when it comes to mortgage applications lenders prefer to see someone spend about twenty eight percent of their pre-tax income on housing reduced housing costs may appear to be a nuclear option but it is something worth considering and downsizing may be easier than you think those who own a home have the following options refinancing to lower your monthly mortgage payment and get a lower interest rate removing private mortgage insurance is a good start pmi is required if you purchased your home with less than a 20 percent down payment it is removed once you have twenty percent equity check the home values in your area even if you haven't paid your mortgage down that much if they've risen so has the value of your home if the value of your home has increased to the point where you have twenty percent equity you can ask your lender to cancel your pmi and they must comply as a short-term rental rent out your entire home or a portion of it number five prepare your meals at home meals prepared and consumed at home can help you save a lot of money meal planning on a weekly basis can help decide what you'll eat for the week make a plan and stick to it even if you don't consider yourself a cook the internet has a wealth of cooking and recipe information if you don't have time to cook during the week make something on the weekend that will last several meals a casserole chili or a chicken dish all you have to do now is portion it out into daily meal containers and grab and go make a hearty soup chili or casserole portion it into one meal containers and freeze it for future convenience providing quick meals on busy days when you're not going through the drive through every night investing in a half dozen one portion containers will pay off quickly number six make a list before you go shopping there are numerous ways to save money at the supermarket but it all begins with a shopping list this simple habit can help you save money on food plan meals and avoid impulse purchases if you stick to the list it can be as simple or as complex as you want and there are even apps that can assist you in making lists and finding bargains number seven make a plan to pay off your debts you'll have more money in your monthly budget if you pay off your debt faster as previously stated credit card debt must be a major focus when it comes to debt repayment it grows and expands unlike your car or mortgage payment and is difficult to reduce higher than minimum credit card payments should be included in your budget keep debt consolidation especially credit counseling in mind increasing your principal payments on your mortgage or car loan will help you pay it off faster you

Channel: Financial Data

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Keywords: how to save money, save money, money saving tips, how to cut your expenses, spending, budget, cut monthly expenses, cut budget, budgeting, personal finance, how to budget, how to make money, how to get out of debt, the rachel cruze show, saving money

Id: SalZ0LDzGUY

Length: 7min 0sec (420 seconds)

Published: Tue Feb 22 2022