5 Ways to Reduce Your Spending TODAY

Sometimes, we can let our spending get out of control. It’s not on purpose, or even intentional. Over time, the budget tends to go unchecked, and you may find your expenses to be climbing. But there is some good news! There are steps you can take to decrease your overall spending. And you can start TODAY.

Start with the budget.

As always, the first place to start when determining how to lower your expenses is with your budget. Take some time to have a budget meeting – this can be done individually, or with a spouse/significant other if applicable.

The first step is to of course evaluate the budget – look at where you are currently spending, and how it aligns with your written budget. Then, it’s time to evaluate expenses.

1. Eliminate subscriptions

The first tip we have is to review all of your subscriptions and eliminate Andy unnecessary or unused subscriptions. These can be cable, entertainment, and other subscriptions – think your monthly subscription boxes or bundles. IE:

• Stitch fix
• Ipsy “Glam Bag”
• Date Crate
• Hunt a Killer
• Hello Fresh
• Blue Apron
• Amazon/Apple/Google Play Music
• Pandora
• etc…

**Side note  – we do not have any affiliations with these services, nor do we have any rights to them or their names. **

When evaluating your budget, these should be the first place to make cuts. They are easy, often superfluous items in the budget. Evaluate these and cancel as many as you can! Think about magazines, subscription boxes, apps, etc.

2. Pack a lunch

Packing a sack lunch everyday can save a ton of money in your budget. This is a HUGE line item for some people. Instead of eating take out everyday, trying buying groceries and meal-prepping instead. Even cutting back to once a week, is a difference of at least $100 a month. If you order takeout more frequently, for multiple meals a day, it may make an even bigger impact!

3. Pick a new hobby

Another big expense in many budgets is hobbies. We once counseled a couple who spent $600 a month on a video game hobby, on a $2,800 monthly net income. That’s nearly 20% of their monthly budget! Now, hobbies are great. But, it’s also important for them to match your income. Instead of buying, try renting new equipment. For other hobbies, research ways to play cheaper – a local golf course instead of a club, playing less frequently, etc.

4. Ditch the coffee

If you’re a coffee drinker, trying ditching the daily latte and making it at home. It’s a lot cheaper, and can save you some serious bucks in your monthly budget. Even just $2 a day for a regular coffee is $60 a month, $720 a year – not including an add-ins, frothy drinks, or pastries. Cut back to just once a week, that’s $8 a month, $112 a year.

5. Apply the 3-day Rule

For all purchases you want to make, apply the 3 day rule. Instead of impulse buying, wait 3 days before buying it. This allows you to sleep on it, and determine if you really need it.

Another rule of thumb is to apply the wants vs. needs checklist to it. Do you need it? Did you need it yesterday? Do you want to store/clean/care for it? Can you borrow/rent it? If the answer to any of these is no, wait 30 days. If you still need it then, buy it. But buy quality.

 

There you have it! Five tips to implement today, to change your budget and reduce your spending. Now, there’s nothing wrong with moderation. You can add items into your budget which you enjoy spending (IE: weekly coffee visit, payday Friday lunch, date night, etc.) The moderation is the important part.

What other ways have you used to cut your spending? What is your favorite tip from this list?