7 Ways to Drastically Cut Monthly Expenses

A while ago, I tried to come up with a way to clear my student loans. I tried to figure out ways to get an extra coin that I could put towards the course, but I couldn’t!! After a lot of frustration, I decided to look into my monthly spending and see if I could salvage a coin here and there. What I discovered was mind-blowing! Cumulatively, I was wasting a lot of money in ways that I didn’t think I would. There were a lot of unnecessary bills, impulse buying, and subscriptions involved.

These ways will help you cut down your heightened monthly expenses and help you save a ton of money:

  1. Unsubscribe from unnecessary recurring subscriptions

As I tried to analyze my monthly expenditure, I realized that I spent a lot of money paying for somewhat unnecessary subscriptions. Let me explain how. Just because I wanted to have a good time on my weekends, I used to pay for both Netflix and Showmax EVERY single month. Just to feed my weekend luxury! While I used Showmax only when a movie was not available on Netflix in my country, I look back now and realize it was completely unnecessary. There are many websites that I would have used as an alternative to streaming the unavailable movies.

I know you may be wondering, “Showmax goes for as low as $7.60 a month, so it isn’t a big deal.” But do the math, in a year you end up paying $7.60 × 12 = $91.20! A whopping $91.20 that could have been saved every year from just one subscription.

Look at what you are paying for every month, if it is not necessary, do away with it or consider downgrading. If you pay for a 100Mbps Wi-Fi and you can do just fine with a 25Mbps Wi-Fi, save your pocket the trouble.

  1. Take your own lunch to work

I cannot over-emphasize this enough. It will take up a few extra minutes of your time every morning/evening depending on when you pack your dish, but it is totally worth the trouble if it saves you an extra $100+ every single month. Most people work in environments where cheap food is nearly impossible to access.

Buying lunch at $20 every single working day is something that a frugal person should not even consider at all. If you buy your lunch every single working day, do the math and you will be shocked to realize that you spend nearly $1000 every year on lunch alone.

  1. Pay for things with cash only

A friend of mine suggested this as we were discussing ways to reduce our spending and I thought that it was actually a very smart idea.

Set a certain amount of money each week and strictly spend only that amount. Unless you are constantly checking your finances (which most of us don’t), there is no way that will be able to track your spending if you are using a credit/debit card to pay. It is also very easy to overspend if you pay using your credit/debit card, I mean, the money is there, right? Always use cash!

  1. Re-evaluate your insurance

Insurance can be a real headache if you do not get the right one. Insurance can be very expensive too. Whether it is life, health, or car insurance, ask around, compare prices and make sure that you are getting a good deal for the least possible amount of money.

In fact, you do not have to wait until your current policy is expired to change auto insurance providers. Most companies allow you to leave any time without having to pay for the remainder of the policy.

However, be careful because the cheapest does not always equal the best.

  1. Shop in thrift stores (at least some times)

Some people do not seem to realize that you can get almost all new designer items for pennies. You can save a lot of money by buying one-off clothes in these thrift stores. The good thing is most of these thrift stores also sell discounted items, so you can end up getting an item for almost a quarter of its original price.

  1. Cancel your expensive gym membership

It is motivating to set your fitness goals and wake up every morning to work towards them in the gym with your instructor and a bunch of friends. However, many people have achieved their fitness goals at their houses! Instead of paying for a costly monthly gym membership, consider working out at home with free workout apps. You can even do this with friends to keep all of you motivated. All you need is the discipline to keep moving.

  1. Consider cheaper housing

I have said this in multiple blog posts, and I will definitely say it again: your rent money should only be 25% or less of your income. YES! If yours is passing this threshold, then you are making a huge financial mistake.

Get a house that serves your purpose and does not stretch your finances.

See HERE other financial mistakes that you could be doing.

You can also get tips on how to manage your money HERE.