The Sunday Mail
The Balance
Being prepared for an unexpected emergency is a key aspect of financial stability. However, many adults have said that even an unexpected $4000 expense would be tough to pay on top of their monthly bills.
Fortunately, gathering the bills you pay automatically—and devoting a few hours to reducing or eliminating them—will go a long way toward helping you be in control of your finances. Here are a few efficient ways to reap savings from the products and services you rely on the most.
Eliminate unwanted bills and expenses
Even if you earn a decent salary, there’s no advantage to it if most of it all goes toward bills at the end of the month. But it’s possible to cut out unnecessary bills. To figure out if you’re spending on services and items you don’t need, print all of your monthly statements and see if you can consolidate them. Then, eliminate indulgences such as monthly box clubs, gym memberships, music streaming services, magazine subscriptions, and more.
Since cash payments tend to be geared toward choice expenses, like entertainment and luxury items, eliminating those first may be an easy way to stop spending too much, too easily.
One of the easiest ways to ensure you have money for fluctuating bills is to consider painless ways to trim your spending.
“Make a money list of all your expenses: money in, money out,” personal finance educator and author Tiffany Aliche told The Balance in a phone interview.
“How much are you making, and how much are you spending on each item? Once you have an idea of what’s happening financially, add a line for emergency savings, or things you can say ‘yes’ to that are important to you.”
One of the easiest solutions when trimming household costs is to drop your DSTV package and pay out of pocket for streaming services like Netflix. This switch could save you hundreds per month—a bonus if you don’t actually spend much time watching TV.
Sharing accounts between family members, friends, or roommates could also help you save, as some of the more advanced options of streaming, which may include live TV, can be more costly.
Shop around for new car insurance
If you haven’t looked into new car insurance in a few years, it actually pays to shop around. Though you may feel this expense is worth the splurge since you’re paying for peace of mind (and are protecting yourself financially in case of accidents, which can ultimately be more costly), keeping an eye out for more affordable plans can save you hundreds of dollars annually on your premiums. It pays to pick the right policy before purchasing a new car, as insurance premiums are based on the vehicle’s price, potential repair costs, and the likelihood of theft. If your car is worth less than 10 times the insurance premium, the coverage might not be worth the cost.
Skip Impulse Buys at the Grocery Store
While you’ll naturally save on food costs by swapping restaurant dining for in-home cooking, the price of groceries actually increased over the last year. While purchasing what you need at the grocery store is important, we all know what it’s like to fall for those impulse buys on the way out.
Cutting those small expenses could make a huge difference on your monthly spending toward food.
Look for ways to save on utilities
There are a few easy tricks you can adopt to lower the bill, including turning off lights when you leave rooms, using energy-efficient power strips, and using appliances that tend to require a lot of energy—such as dishwashers—during off-peak hours.
