7 Ways to Cut Unnecessary Expenses and Start Saving Money

When you want to have something right away, you might be willing to pay more than it’s worth. This is the logic behind the credit trade shops that allow you to have something instantly, and pay in instalments. How does this impact your ability to start saving money?

The opportunity to get things that one can’t really afford lures people into debt, and this may be a never ending state. To recover and start saving money, be honest with yourself as you decide what you really need and what you don’t need. Here are 7 easy ways to start saving money on your expenses without lowering your quality of life:

Unplug Your Charger

Power bills may look negligible, but this could be the greatest drain – and it is power you are not using. When you leave a charger plugged in day and night, you are spending power that is not going to any beneficial use. The same goes for lights that are left on in empty rooms, as well as devices that are plugged in. Even devices that consume low power will count as much when they are plugged in 24/7/365. Remember, switching off is not a precaution as many devices consume power even when they are turned off. You must consciously stop wasting money in order to start saving.

Use Pay As You Go Transactional accounts

Some people are accustomed to paying for checking accounts, and do not bother to find out which alternatives are there for them. Nowadays, banks offer free accounts – where you pay only as you transact, or where you are required to maintain a minimum balance to avoid charges. You are better off leaving this minimum balance in exchange for a free account rather than having monthly expense especially for accounts that you do not use regularly. When you need cash, look out for banks that offer free ATM withdrawals – eliminate this unnecessary expense.

Check Your Spending On Credit Cards

Most credit cards are expensive, and the interest charged on them is exorbitant at best. Remember every cent you pay towards credit card interest could be sent to your retirement fund, your vacation saving, or your son’s college fund. Do the Math and find out how much you are paying by multiplying the interest rate with your average monthly balance. Are you comfortable paying $500 a year towards credit? Compare offering between different cards to see get one with lower or 0% rates. If you have to use your credit card, make sure you repay the balance every month to avoid paying hefty interest rates. You can stay perfectly without credit cards if you find you are unable to manage them – Use cash or debit cards instead.

Kick Out the Addictions

Addictions are often related to spending, and they don’t come cheap. Pornography, gambling, excessive eating, drinking and smoking could be costing you a fortune each month, eating into your retirement fund. The health problems associated with these addictions are numerous and equally expensive to address.

Stop Spending on Expensive Snacks

Many of the popular snacks people spend on are over processed and expensive – that is why they’re called junk. They also contain calories that your body could do without. Eating junk food may lead to loss of appetite at meal times and also weight gain which is expensive to control. Healthy meals can be made at home cheaply giving one benefits on both counts.

Stop Paying Monthly Gym Membership

Research by Statistics Brain shows that 67% of people who pay for gym membership do not actually use the gym. While monthly or yearly memberships are marketed cheaply, you are better with pay-per-class options. This allows you flexibility as you can choose to switch gym for salsa or yoga when you need to change. Even if you actually use your membership, it is cheaper to pay when you attend if you only make it thrice a week. You may also choose to invest in work out DVDs and practice at home.

Don’t Go Shopping Without a List

This is one you have probably heard, but it works. Shopping lists are important when shopping so as to avoid buying things you do not need. Many are the times people have walked into clothing stores and walked out carrying dresses that they are sure they will never wear. Other times, you may end up buying something almost identical to one that you already have, and are not wearing. Beat all this unnecessary sending by creating a proper inventory and avoid buying anything that is not on your list.

These ways that you waste money need a complete overhaul if you are to start saving money. But it is time to start being accountable and think – how much are you really wasting? It could be only $10 a day. Do the math -Is this $3650 a year or thereabout? Be conscious about the ways you could be wasting money – start saving money and spending on what is necessary.

 

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