If you're trying to save money, you might be wondering how to cut down on your spending. Try to calculate how much you are spending, set goals and analyze your expenses to reduce them and start saving money today. These changes might seem difficult at first, but the small changes you make in your day-to-day life will add up over time.
Method 1 of 4: Prepare a budget
Step 1. Add your bills and expenses
It's important that you figure out how much you spend each month. Add up all of your expenses like loans, rent, car payments, insurance, and groceries.
Don't forget any expense, even the smallest
Step 2. Subtract the expenses from your salary to see what is left
Take your monthly income and subtract any expenses you make. Once you've taken all of your bills out of your paycheck, you'll end up with the money you have left for the month.
create a spreadsheet in Excel or Google Sheets to easily note and track your budget.
Step 3. Write down every expense you make
It can be easy to lose track of the money you spend every day. Write down on your phone or on a piece of paper all the times you spend money, even a tiny amount. You can then get a better idea of the things you are buying and decide if you can do without them.
Step 4. Create goals for yourself with your money
If you want to pay off debt, save money, or save for a major purchase or travel, set goals with your money. If you have one in mind, you can be able to better track your spending and meet the goals you set for yourself. This will help you avoid spending money unnecessarily.
Don't be put off if you don't reach your goals within the time frame you've given yourself
Step 5. Avoid unnecessary expenses
It can be tempting to buy cigarettes or coffee every day, but these small expenses add up over time. Try to avoid spending money on things you don't need until you can afford them.
Make sure you make paying your bills your priority
Method 2 of 4: Manage car expenses
Step 1. Use public transport as often as possible
Public transport is good for the environment and good for your wallet. Do some math to find out if they would cost you less than using your own vehicle. It could help you save money on gasoline and car maintenance.
some transit companies offer reduced fares if you purchase multiple tickets or a season ticket. If you take the bus or train often, find out if there is this kind of advantage.
Step 2. Carpool with your coworkers
If your colleagues live near you, you can set up a carpooling system. Ask them if you can alternate between the days you pick up the car to work and pick up your coworkers when your turn to drive comes. This saves on gasoline and maintenance.
Make sure you participate in the carpooling schedule so you don't abuse the kindness of your coworkers
Step 3. Check the tire pressure
The tires in your car have the optimum pressure which you must adhere to in order to use gasoline more efficiently. Use a pressure gauge to determine your tire pressure, then check your owner's manual to see if it's the right one. This will save you gasoline over time.
If your tire pressure is low, you can add air to it at most gas stations
Step 4. Sell your car if you use it infrequently
If you don't use your car often, or if you have a vehicle that you don't use, sell it to replenish your funds and reduce your gasoline and maintenance expenses.
Check the value of your car online before you sell it to find out how much you can sell it for
Method 3 of 4: Reduce bills
Step 1. Adjust the thermostat when you leave the house
Set it to around 18 ° C in winter and 27 ° C in summer to keep your home warm or cool while you're not there. Check the thermostat settings to see if you can program it to adjust automatically.
You can also set your thermostat to a lower temperature while you sleep
consider investing in ceiling fans. They will drastically reduce your heating and air conditioning costs by circulating air more efficiently.
Step 2. Buy energy efficient light bulbs
Replace light bulbs around the house with low energy bulbs. They cost a bit more to buy, but they consume less power and will save you money in the long run.
You can buy these kinds of bulbs at most supermarkets and DIY stores
Step 3. Unplug your electronics
Even if your devices are turned off, they still use power if they are plugged in. Unplug the phone, laptop, or other battery-powered devices from their outlet when not in use to save money on your next electric bill.
In addition, you will protect your devices against overvoltage
Step 4. Take five to ten minute showers
A shower uses tens of liters of water each time. Take a quick shower using fewer products and soaping yourself up as soon as you step into the shower. Take lukewarm showers to encourage you to get out faster. This will save you money on your bill.
Set a timer so you don't spend too long in the shower
Step 5. Cancel your cable subscription if you are not using it
With the advent of streaming services, many people no longer watch TV as often. If you've noticed that you're no longer watching cable channels, cancel your subscription to save money every month.
- When you cancel it, your provider will try to convince you to keep your subscription to continue collecting your money. Be polite, but be firm.
- Also cancel any subscriptions you are not using. Usually, they are automatically withdrawn from your bank account every month and you might not even notice them.
Method 4 of 4: Spend less on food
Step 1. Make a shopping list before going to the store
A shopping list will give you a better idea of what you need and what you need to dispose of. Take a peek in your kitchen to find out what you need before you go to the store, and try to buy only what you put on the list.
try not to go shopping on an empty stomach. You're probably going to buy things that you don't need if you're hungry.
Step 2. Buy fresh, seasonal produce
They are going to cost you less than the fresh produce that comes from the other side of the world, because you would have to pay the cost of shipping to the store. Research the area where you live to see what's in season. Local products often have a sign indicating their origin.
Go to a farmer's market near you or buy some fresh produce from your supermarket
Step 3. Cook at home as much as possible
Food in restaurants is often more expensive than what you can cook at home. Go out to eat as little as possible and try to cook as much as possible at home.
- Prepare your meals in advance and put them in the refrigerator to reheat them later. This will save you time and avoid going out to eat.
- Prepare your lunch at home and take it with you to work to be less tempted to buy fast food.
Step 4. Prepare your coffee at home instead of buying it
If you buy your coffee outside, it can cost you up to € 5 per day. Invest in a coffee maker and thermos to make your own coffee and take it with you to save money.