3 Ways To Cut Expenses Easily

Hi everyone, thank you for coming back to my blog. I hope you found my last blog interesting and useful, where I covered ‘3 Best Apps for Savings Automation’.

In today’s blog, I am going to cover the easy ways you can cut your expenses, so that it leaves you with more money to either save or invest, which will benefit you in the long run.

The most easiest way to know what your monthly expenses are, and therefore identify where you can afford to cut these, is by creating a budget, or as I like to call it a ‘Wealth Building Plan’. I will be releasing the template I use later this month, so that you can use it for 2021 yourselves, so watch this space and keep an eye out for that. In the meantime, you can read my blog on “3 Ways To Make Budgeting Fun’, if you haven’t done so already.

But there are even more easy ways to cut expenses, without having a budget and this is how you can do it:

1. Cancel subscriptions — If there are any magazines, streaming services or memberships that you are not using very much or at all, then cancel them! If it has been months since you actually used this product or service, then get rid of it. If you find out after that you miss it, you can always re-subscribe, when expenses are not so tight. Even though they aren’t costing you money directly, drop any email newsletters or merchandise catalogues that tempt you to make impulse purchases. Again, you may sign up again in the future, but you need to deal with now first.
2. Reduce utility expenses — You can’t do without gas and electricity, but you can find ways to lower your utility bills. Like using Look After My Bills (www.lookaftermybills.com) to help find you a cheaper deal on your gas and electricity, every year. All you need to do is register and tell them when your current deal ends and they will do all the work for you. There are also other small things you can do around your property to keep utility expenses low, such as:

• Turning off lights when you leave a room.
• Using LED light bulbs, which cost more, but last longer and use less electricity, more than paying for themselves.
• Unplugging any unused electrical devices, because many electronic devices draw a small amount of electricity when not in use, and this adds up.
• Installing a smart thermostat, which enables you to change the temperature of your property when you’re not there, saving on utility bills.
• Buying energy efficient appliances when replacing old appliances.

3. Switching to cash only — If you seriously want to cut expenses, commit to spending cash only, if not forever, then at least for the time being. By doing this, it forces you to account for every pound (£) you use and makes you more frugal when you use cash than when they use credit cards. Also, using cash means you cannot live above your income. To simplify this, automate your regular and essential bills (e.g. mortgage/rent, utilities, mobile phone bill etc.) and the rest of your spending is limited to the cash you have left over.

Try some of these easy methods of cutting expenses and you will be surprised as to how much you can actually have left over each month.

Until next time, thank you and stay safe.