10 Ways to Reduce Expenses

10 Ways to Reduce Expenses

10 Ways to Reduce Expenses

  • Bills
  • Finance

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Dreaming of paying down debts and increasing savings? First, you’ll want to lower costs and cut expenses. Here are 10 easy ways to lower costs. 

Track Spending 
When you track your expenses for a month or two, you'll be able to distinguish between needs and wants and find a good spot to lower costs. For example, if you're spending $200 every month on new clothing, you might be able to cut that back by getting into thrifting or cutting back on your shopping. 

Create a Budget
Note how much money comes in every month and then your expenses. Your budget should account for your fixed bills (house, car, credit cards) and needs (groceries, gas, medical expenses). What money is left is your discretionary spending for eating out, entertainment, and paying down debt and increasing savings. 

Evaluate Services and Subscriptions
Rarely go to the gym? Never watch cable? These are a few of the areas you may be able to reduce or eliminate monthly expenses. Ask yourself if you're using each service or subscription, if you need it, and if you can live without it. Then get rid of what you don't use.

Cook at Home 
The average American family spends around $3,000 every year eating out. Even if you only get takeout once a week, the cost can add up. Anyone interested in how to cut expenses might consider skipping a few takeout meals in favor of cooking at home. 

Reduce Electricity Consumption
Most households spend an average of 12 percent of their budgets on electricity. Make some simple swaps, like replacing incandescent bulbs with LEDs for the five most-used light fixtures, installing programmable thermostats, and keeping up with maintenance on the heating and cooling system. 

Save Water
The average American family of four spends $72.93 every month, using 100 gallons of water per person every day, not including the cost of heating water. Although your monthly cost depends on where you live and how much water you and your family use, if you save water you’ll reduce your expenses. 

Lower Housing Expenses
For anyone wondering how to cut expenses on housing, the answer depends on your circumstances. You might consider getting a roommate or moving to an apartment with a lower monthly rent. If you're a homeowner, you might refinance your mortgage or sell your home and move to a more affordable area. 

Save at the Grocery Store
Shop for nonperishables in bulk and switch to store brands when it's practical. Sign up for store loyalty programs that can give you access to the best sales and coupons. 

Follow the One-In, One-Out Rule
For every new item you want to buy, first get rid of an old one. For example, do you want a new pair of sandals? You’ll have to get rid of one first. Nothing you care to throw out? Then perhaps you don’t really need that new pair. 

Discover Free Activities and Fun
Save on your entertainment expenses with free fun. Taking a hike with friends, attending free concerts or movies in the park, picnicking in the park, or gathering in the backyard are all low- or no-cost ways to enjoy your life without adding a ton of expenses. 

If you’re ever short on funds, apply online for a loan at CreditBox. You can also earn extra money with CreditBox’s Refer-a-Friend program. Just by telling friends, family, and co-workers about the installment loans CreditBox offers you can earn up to $100 for each referral and your friend can get $50.
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