Cutting your expenses can be a great way to get out of debt fast. It is amazing to see how much goes out every month to pay for our lifestyle. Even if you don’t live extravagantly it can be easy to overspend and not even realize that you are doing it.
5 Ways to Cut Your Expenses
1. Take your lunch to work
It can be tempting to eat at a restaurant close to work, however, if you do this every day it can kill your budget. Let’s say that you eat out 5 times a week at $10 a pop. That comes out to about $200 per month! And that is only for one person. An alternative would be to bring your lunch to work. Let’s say that you bought the micro wave dinners for $2.50 each and ate that instead. It would save you around 4150 per month by just making that one adjustment.
2. Sell your car that has a car payment
Car payments can be a real drain on your pocket book. According to Experian, the average car payment is $452 per month. Not only that, but when you own a newer car, it has higher costs associated with it. For instance, the insurance is more expensive as well as the annual registration for the vehicle. You would be better off driving a used car that is reliable in order to make some headwinds with paying down your debt.
3. Use coupons when grocery shopping
Buy a Sunday paper from the dollar store and you will get hundreds of dollars in coupons for only $1. This is a great trade-off, right? Then spend the time making a grocery list. Once the list is complete, look for only coupons for items on your list. You may see a coupon for something not on the list, but you must resist if it is going to break your budget.
4. Limit how much you eat out
Not only can eating out for lunch every day be expensive but so can eating out for dinner and on the weekends. Set a budget for eating out and then make a limit for how many times you can go out to eat. For instance, if you have a budget of $100 per month and the average dinner costs you 425, then your limit is 4 dinners ($25×4).
5. Ask for a better deal
This is shocking to see how much money you can save by doing this. Let’s say that you currently pay $150 per month for two cell phones. Call up your service provider and ask them for a better deal. We are with T-Mobile and spend less than $100 per month for two cell phones by doing this.
What are you willing to do to cut your expenses?