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How to Effectively Cut Back On Living Expenses

Cut Back On Living Expenses!

 

With the cost of living sky rocketing due to the current economic turmoil, everyone is looking for ways to reduce on their expenditure and lower their living expenses.

2014-09-26 living expenses

This has necessitated individuals to cut back on their regular budgets. Some of the ways one can effectively cut back on their budgets are discussed below.

Transport expenses

Moving around can be costly especially if one has to travel every day to our work .There are several ways one can cut back on transport costs. If you own a car, it will be advisable to begin using public transport and only use your vehicle when it is extremely necessary. Using public transport will save money on gas, parking tickets and regular vehicle maintenance.

If you have friends in your neighborhood, you can carpool. Carpooling is sharing a ride in your friend’s car and diving the fuel expense amongst the users. This is very cheap as if you are four friends, you will only pay a quarter of the fuel expense.

If you have your vehicle parked on the drive way or garage and you do not use it, it is advisable to sell it or rent it out. This will help you pay insurance costs that you would still be obliged to pay whether you use the car or not.

Child expenses

If you have children, you are likely to spend a lot on child care. Look for affordable and less expensive child care options where you can enroll your children. If none is available near your area, you can use a limited childcare center which is close to your workplace.

Energy utilities

According to US labor department, energy related bills increase living expenses as they usually account for one fifth of the average American salary. There are several ways one can take to reduce their monthly energy bills. Make sure you unplug any electronic devices that you are not using. The US department of energy states that between 5-10 {8376195f3e11fe7b79595fd7996b9c81f861524e2a126880dfd577a3d56818a3} of all energy consumption is consumed by plugged in devices.

Installing ecofriendly and energy saving bulbs will help reduce your electricity bill. It is also important to switch off lights when you leave a room. In addition, ensure to switch of air conditioning while you are away as air conditioners is one of the biggest electricity consumer. You should also ensure that you compare your gas and electricity rates and look for a service provider that gives you the best deal.

Debt and loan reduction

Debt reduction is one of the best ways to reduce your monthly payment load. Though one might not have the cash necessary to clear their debts and loans at one go, there are several ways to effectively offload your monthly debt and loan repayments.

You can undertake refinancing of your debts. It is important to get a financial institutions that will help reduce your monthly payments without a significant increase in your overall cost. You can also undertake consolidation of your loans. These two measures will definitely free up some money that you can redirect somewhere else.

If you still have money on your credit card, you can contact your Credit Card Company and request for a credit card rate reduction. If you do not get a favorable rate, it is best to get a zero percent transfer to another card.it is important for someone seeking to save to stop buying on credit until their financial standing is stable.

You can also undertake debt reduction by selling items you do not use or those stored in your garage. There are various online sites that you can post your items and get people willing to buy them. You can use these cash to reduce your debts and pocket some.

If you are a small scale business owner, you can get some money by claiming small business tax deduction refund. You can get refunds on your expenses from office supplies expenses, furniture, office equipment and telephone expenses

Cutting on food costs

Though it may seem convenient to eat out, it is very expensive in the long run. Try keeping your receipts and you will be shocked at the end of the month when you add the total cost. When you cook in your house, it is advisable to cook in bulk and freeze some for future use. In the workplace you can have packed lunch and thus avoiding buying food for lunch and contributing to reduction in living expenses.

You can effectively save on your food costs by reducing and eliminating eating out and ordering take outs. Use any free time to cook your own food. Cooking your own food not only ensures you eat healthy meals but will also help you improve on your cooking skills.

Entertainment expenses

One can easily save money by reducing their entertainment expenses. Cancel any club membership as clubs usually levy monthly payments. Find a free outdoor activity to replace the club activities. You can also cut back on your cable bills by subscribing to a less expensive package or eliminate cable subscription entirely.

Another effective way of reducing your living expenses is to cancel your newspaper and magazine subscriptions and by eliminating or reducing travel.

When you cut back on living expenses make sure you don’t cut back on expenses that are in the category small business tax deductions.