Your monthly income will only stretch so far. If you often grab a cup of coffee on your way to work, treat yourself to many clothes throughout the month, or say yes to every social invite, you might feel it’s impossible to keep track of your finances.
If you’re tired of struggling with debt and want to build a healthy savings fund, it might be time to overhaul your spending habits. Read the following tips on how to slash your monthly expenses.
Note Down Every Expense
A Starbucks coffee or a fast-food burger might feel cheap, but all those small expenses will add up to a large amount of money. If you’re scratching your head about where your cash has gone at the end of each month, start noting down every expense you make.
You’ll quickly realise your daily coffee habit is costing you hundreds of pounds throughout the year, and the takeout treats are draining your bank balance. It can change your money mindset, which can lead to smarter financial decisions.
Start Comparing Suppliers
If you haven’t already done so, you must compare different providers against one another to secure the best deal. You can compare gas, energy, and insurance providers to find the best rates for your finances.
Use this tactic for every company that regularly provides a service and review rates to enjoy a healthy cash flow. For instance, if you’re a pet owner, you can save money by taking your dog, cat, or another animal to easyvet.com, as they offer competitive prices and packages for veterinary exams, vaccines, and preventative care.
Cut Expensive Memberships
If you have an expensive gym membership, consider canceling it and embrace more affordable alternatives. For example, you can start jogging, lifting weights at home, or tackling various home workouts. If you have a TV subscription service you’re not using, such as Netflix or Hulu, it might be worthwhile canceling your membership to save much money throughout the year.
Challenge Yourself to No Spend Days
Challenge yourself not to spend any money at least one day per week, especially on a day off. While it might mean you need to turn down a social invite, your bank balance will be in a much healthier position at the end of the month. It cannot only prevent you from wasting money, but it could cause you to think twice when pulling out your credit card in the future.
Set Yourself a Savings Challenge
If you are failing to build a rainy-day fund, set yourself a savings challenge. Aim to save a specific amount each month, and you might need to cut expenses to hit your goal. For instance, add the cost of a chain cup of coffee into a savings account, which will add up to a big sum throughout the month. Also, you could save every $5 bill you receive and aim to fill the jar by the end of the year, which you can then add into a savings account or use to buy your loved ones’ Christmas gifts.