Cut Expenses and Pocket the Cash!
Personal expenses are unavoidable and often forgotten from peoples budgets. Most people spend a lot more money than they realise, which means we need to sit down and understand our money spending expenses.
If you were to ask someone to create a detailed list of their weekly, fortnightly or monthly expenses, it has been suggested that these are over 30% inaccurate and significantly denting your budget.
Expenses Eating away at your Money
These small expenses all add up to create a difficult position for many people on a budget. What is the best way to cut your expenses? Be ruthless with your expenses and change your spending habits to focus heavily on saving money. A few small changes to your expenses can result in a lot of money in your pocket.
For instance you could;
- Stop drinking coffee
- Stop smoking (If you do)
- Cancel Foxtel or PayTV
- Don’t buy junk food
- Limit your alcohol intake
- Go out only once a week maximum
Food Expenses: The Big Dent
Always write a shopping list. Regardless of if you need only a few items, putting pen to paper will help you understand what you are shopping for and limit the impulse buying. Stores know that people impulse buy, so have setup the aisles and checkouts to accomodate for this – be careful!
Should you see something that does take your fancy that is not on the list, pass on it for that shopping trip and re-evaluate if you need it when you get home. odds are you have just beaten the system and bypassed your impulse desire.
Hungry Tummies make Hungry Wallets
Do not go shopping when you are hungry. When people are hungry they will always buy more than what they reall need. I find the best time to go shopping is on a Sunday at midday, allowing me to get organised for the week ahead.
How do you cut expenses?
Tell us how you cut your household expenses – there are millions of ways and we would love to hear from you.
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