The majority of posts I read showing you how to cut back on expenses involve eating less, drinking less, going out less and generally living less.
Those can all work and will help you get out of dire straits. I even recommend this approach on this site.
But what if all you want to do is reduce spending a little? Or save a little more?
There is a middle ground. To cut back on non-essential spending, save money on bills and still bring spending under control.
That’s what this post is all about. How to cut back on expenses and make the difference between living within your means and not.
1. Create a budget that reflects your values
The first step on the journey is to create a budget. If you don’t know what you’re spending, you don’t know how much you need to cut back on expenses.
Once you have the basics, look at what you spend and where you could cut back without really feeling it.
Make sure to still enjoy life though.
Maybe it’s cutting back that daily coffee fix, a weekend movie night, or a gym membership. Allocating funds to what brings you joy helps maintain a balanced budget without feeling deprived.
2. Master the art of meal planning
Eating out can be a major wallet-drainer. Start planning meals for the week, making a shopping list, and sticking to it.
You can then do one shop to buy all the ingredients and avoid those little trips that end up costing more than you planned.
Batch cooking and freezing portions also saves me time and money. You can make a big pan of something, portion it into meal-size containers and freeze them.
Not only do you save cash, but you can also ensure you get decent meals and a little variety too.
3. Embrace the charity shop
Say goodbye to retail guilt and hello to the charity shop treasure hunt! You can find some incredible deals on clothes, furniture, and home decor without compromising style.
It’s a sustainable way to shop, you’re helping a good cause and reducing waste. Your wallet and the environment will thank you!
4. Subscription audit
Take a close look at your monthly subscriptions. Are you really using that streaming service, magazine subscription, or gym membership to its full potential?
Trim down the excess and keep only what truly adds value to your life. You’ll be surprised at how those small savings add up.
Do you really need 3 streaming services? Do those meal delivery boxes really make sense? Could you do without them if you’re batch cooking?
If you genuinely need all your subscriptions, keep them. If you don’t, you know what to do…
5. Make your money work for you
Set up automatic transfers to a separate savings to consistently build savings. It doesn’t have to be much at first, but having savings can help prevent you relying on credit cards if things go wrong.
There are some excellent rates around right now so shop around and start saving.
6. DIY magic
Embrace your inner DIY enthusiast for an easy way to cut back on expenses!
From homemade cleaning products to simple home repairs, a bit of effort could replace costly trades. If you can get hold of a trade in the first place that is!
YouTube is fantastic for DIY tutorials. You can literally learn everything on there.
Just save the gas and electrics for the pros. Everything else is fair game!
7. Cashback rewards and coupons
Who doesn’t love a good deal? Consider using cashback apps and websites for everyday expenses. Cashback debit and credit cards also have their place if you can get one.
It might seem like small change at first, but those savings can really add up over time.
8. Negotiate like a pro
Don’t be afraid to negotiate bills and interest rates. A simple call to your service providers or credit card company could result in lower payments or better terms.
It’s all about having the confidence to ask for a better deal.
Brits aren’t great at negotiating but it’s about time we all learned!
9. Mindful spending
Understanding your spending triggers could be a game-changer. Whether it’s stress, boredom, or the thrill of a sale, being aware of these moments allow you to make conscious decisions about purchases.
Once you recognise the trigger, it’s something you cannot unsee. That works in your favour when trying to cut back.
10. Celebrate small wins
Finally, pat yourself on the back for every small victory. Whether it’s resisting that impulse purchase or sticking to your budget for the month, celebrate the wins.
It keeps you motivated and makes the journey to financial freedom much more enjoyable!
And there you have it –ten actionable tips to help you cut back without compromising life too much.
Reducing expenses doesn’t mean sacrificing your quality of life. It’s about being intentional with your spending, making informed choices, and finding joy in the simple things.
Here’s to another year of thriving on a budget!
