One of the first pieces of advice we always throw out when discussing painless ways ways to cut household expenses is "stop drinking $5 coffees every day". If you are anything like me, then you are not accustomed to drinking $5 coffees every day anyway. $5 is quite a sum of money and it adds up quickly. Changing your budget and reducing household expenses do not have to be uncomfortable experiences. Let's talk about some simple strategies you can employ to succeed in the long run and 5 surprising ways to cut household costs.
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Perform an audit.
First and foremost, figure out what you're getting, what you're spending, and what you're spending it on. Pull out your bank statements from the past three months or so. In the event that you have already made some changes, three months of bank statements are all that's needed. To really dig in and figure out what has been happening with your money, print the full 6 months.
You might want to grab some highlighters and go through your bank statements line by line. Depending on your preferences, you might use pink for income, yellow for necessary expenses, and green for unnecessary or unnecessary expenses.
Following that, make a list of all the unnecessary expenses and determine which ones will be the easiest to cut. Write down a list of the expenses we plan to reduce first, second, third, etc. It is possible to make these changes in phases so that it does not represent a major disruption at once. You should consider cutting expenses as much as possible right away if you have major leaks in your budget and are drowning in debt.
Fix the leaks.
Making small changes that will "patch the leaks" rather than stopping everything and cutting your expenses all at once would be more realistic in the long-run. Leaks happen when money goes unaccounted for month to month. It's a leak when money goes to fast food unnecessarily.
There are a few leaks you might not think about at first, such as utilities, food, and entertainment. However, this does not mean you need to totally eliminate entertainment and switch to an off-brand diet. Basically, this means you will know where every single penny of your income goes, so you can make sure it is accounted for and you are not misusing it. Everybody should have access to entertainment budgets, and nobody should have to eat off-brand bread! 😉
Negotiate Utilities
If you don't pay attention, you may end up with a large chunk of your monthly expenses coming from cable and internet. It isn't practical for you to downgrade to a slower internet speed if you use the internet at work, but in any event, it is worth checking out competitors such as xfinity internet plans, as they may be able to put you on a cheaper plan. Look for which internet plan is the cheapest and compare it with others. Ultimately, you want a package that is cost-effective but also fast enough for your needs.
If you are particularly interested in watching TV, you can easily cut the cable and get Netflix or Hulu instead.
You can negotiate a lower cell phone rate by calling your provider. Make sure you ask if you qualify for military or veteran discounts, AARP discounts, etc. Make sure you see what discounts they offer! There are companies that offer discounts specifically for law enforcement, first responders, and teachers. As long as the discounts are available and you qualify, you might as well take advantage of them.
Watch your food expenses.
It is easy for grocery bills alone to add up, even if you don't eat fast food every day. When we started meal planning and using curbside pick-up services, we drastically reduced our grocery bill. One of the greatest inventions of all time might be ordering food online and picking it up at the store.
You no longer have to buy last-minute impulse goods in the checkout line when curbside pick-up is available. No more Target runs that cost more than $200 when they should have been $50! This really is one of the best of the 5 surprising ways to cut household costs I am sharing today.
Consider reevaluating entertainment costs.
How much do you spend every month on entertainment? How much money are you willing to spend on a Playstation subscription or video game, going to the movies or bowling? The time is now to begin one if you do not already have one. The entertainment factor is vital. There's no need to completely cut it off, but recognizing our expenditures and ensuring they are proportionate to how much they enhance our daily lives is an essential part of cutting household expenses.
You are ready to set a budget for entertainment after you've completed your household financial audit and plugged the leaks. Having a budget doesn't mean you have to stay at home all day, but rather, it means using your money more wisely with the items you've selected for certain activities. You can go to the movies for $2 per person instead of spending $50 at the movies. Or keep the costs down by watching movies at home with popcorn which costs a tenth of the price of theater popcorn!
It's easier to budget when you make little changes like this. You might even enjoy it. Have everyone in the family figure out how to have the cheapest date night possible. Having family nights at home with board games and popcorn and going out is an excellent alternative. You will not only ensure your family is never bored, but that your budget will not be blown either. Find cheap bowling days and times, cheap movie days and times, etc.
Lastly, if you did not check it as part of your audit, be sure to check your recurring subscriptions through Paypal. Ensure that Cash App, Zelle, and any other payment methods you use are working. A tracking system is meant to keep track of every dollar coming into and going out of your wallet. When you start doing this one simple thing, everything else seems to fall into place rather easily.
The next steps…
You may have to go through again and be even more ruthless with expenses after you have reduced household expenses in a painless way. Alternatively, you may want to consider side jobs to generate more income. As hundreds of thousands of people do every day, drivers can drive for companies like UberEats or they can make income online creating their own streams of income. Whatever your financial situation is, planning and budgeting can improve it!
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