If you are anything like me, you probably want to know as many different ways as possible to reduce your monthly expenses, thereby increasing your savings. Today I would like to outline four really hard hitting methods to achieve this.
So let’s get right to it.
1. Adopt the “Do Not Spend” Mentality
This is the typical behavior of rich people. They hate spending money, but love to invest and make money. When you start to look at your money and the things you buy as investments and expenses, it will totally change your spending habits.
For example, buying food and paying rent do not make you any money. Therefore, they are expenses. However paying for an education, lets say in real estate internet marketing, is an investment because you get a financial return on what you pay.
So start looking at each thing you buy as an investment. If it doesn’t make a return, minimize it, or drop it altogether. You’ll find yourself saving quite a bit of money with this mentality.
2. Cut Down the “Eating Out”
I know this will be considered by many as a horrible thing that they don’t want to give up, but just ask yourself, how many times per week do you go for fast food? If you analyzed your bank statement or credit card bill, you would probably find a large percentage of the charges would be fast food or other “eating out” type expenses.
Here’s a tip to effectively control the urges. Figure out how much you are truly willing to spend on eating out every month, then pull that cash out of the bank, and put it in an envelope called “eating out”. Spend that money throughout the month, and when you come to the end of the money in the envelope, stop going out to eat. I know it takes a little discipline to do this, but it is well worth it in terms of monthly savings.
3. Guard Your Home Thermostat
One of the biggest ongoing costs to owning or renting a home is electricity and gas. Especially in places that are extremely cold, or extremely hot. And while I know it is tempting to setup your thermostat to automatically control the temperature at different times during the day, and perhaps even seasonal, you can do a lot better with a simple manual approach.
When you leave the house for any length of time, turn off the thermostat, period. If it isn’t running, it isn’t draining your utility bill. Secondly, work yourself up to higher temperatures while it is hot, and colder temperatures when it is warm. So for instance, try to kick the thermostat up to 79 or 80 degrees during the summer, and down to 65 or 70 degrees during the winter. It might be a little uncomfortable at the first, but you can get used to it, and save a lot of money.
4. Move Closer to Your Workplace
These days there are still many people that drive incredible distances to get back and forth from work. These long commutes, coupled with insanely high gas prices, make a sizable impact in your monthly budget.
So what should you do about it?
Well, first evaluate if you see yourself at this job for any length of time, and if you think you will, then seriously consider moving close to it. Now is the perfect time to land a new house near your office for a fraction of the cost, as compared to three or four years ago. There may not be a better time to buy than right now.
As you can see there are limitless options to how you can save money in your life. All you need to do is start looking for areas where you can make changes. It is that simple!
So, how have you saved money in your life? What changes have had the highest impact on your finances? Please share.
Miss T has written 582 articles on this blog. Hi, I am Miss T and I am the owner and head writer of PrairieEcoThrifter. Each and every day I am working to live a money savvy, healthy, and green life.While you're here, consider signing up for the RSS feed or email subscription . Both deliver the latest articles directly to you everyday. Have a Twitter , Facebook, Reddit, Stumble Upon, or Digg account? Then follow me for all of the latest posts or to send any comments or questions.
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Eating out is incredibly expensive compared to cooking at home for us. A meal at home might be $4 for two and have leftovers but going out to eat typically costs us between $20 and $50 depending on the place.
I’ve probably saved around $400 over the last six months through walking to work. Living close to work makes a big difference in time and money.
@No Debt MBA. You are totally right. Purchasing ingredients to cook at home is always cheaper. Wow $400 from walking to work- that’s great. I find that walking not only saves on gas and mileage but it also saves on parking. Parking at the hospital where I work is $85 a month alone.
Not only are you saving money, wear & tear on your car, but you are also getting exercise & some vitamin D! And you don’t have the stress of driving in traffic either. That’s a lot of benefits! Congrats on it all!
@Maggie. Thanks. Sounds like I have inspired you…that’s great. Just start off slow and make small changes. That way you won’t become to overwhelmed.
Sometimes a fan or a personal heater, depending upon the season, is more than sufficient instead of turning up the thermostat. Of course, this has to be practical (no kids or guests in the house etc)
Good tips Miss T.
@Moneycone. Yes indeed. We just finished setting up our fans last night since we are going through a bit of a heat wave here. Will feel like in the 40′s here which is too hot for my husband. But I agree, it doesn’t look nice for company. Thanks for the tips.
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#1 is the biggest one, I’m constantly reevaluating my expenses to see if something could be cheaper or eliminated.
@Andrea. Good for you. Some people try to avoid this because they don’t want to make any changes. Kudos to you for being brave and willing to adjust.
Miss T, I love your idea of setting aside an amount for eating out for the month! And if you’d have some leftover from a month, how about putting it towards a really nice dinner out sometime? Love it! I’d be trying to have money left over every month & end up cooking more & more at home. And very happy to do so! Great for motivation, thanks!
4 High Impact Money Saving Tips http://bte.tc/q4Dk #RTW
Number 2 is huge in our household. With two grown children that have moved back home and have been used to ordering pizza or picking up burgers, it is really difficult. I am trying to combat it by keeping a good variety of lunchmeat, breads, and cheeses in the fridge for summertime, along with pasta salad and fruit to make quick and easy meals. Not only is it better for the budget, it’s also healthier.
@Denise. Your kids should be helping out with this in my opinion. They are old enough to take on some of the responsibility. Glad to hear you are trying ti provide healthy options though. Sadly, many people don’t take the time.
4 High Impact Money Saving Tips http://bte.tc/q4Dk #RTW
4 High Impact Money Saving Tips http://bte.tc/q4Dk #RTW
Not only are you saving money, wear & tear on your car, but you are also getting exercise & some vitamin D! And you don’t have the stress of driving in traffic either. That’s a lot of benefits! Congrats on it all!