How to efficiently reduce your monthly expenses

Technology is advancing rapidly and day-to-day tasks are made easier by some or the other machine.

Due to this, the cost of even a very basic lifestyle is pushed up. It is becoming increasingly difficult to cut down any items from our everyday expenses list.

 But this is just the beginning and we will be living in an even more expensive world in the future. Hence it is crucial to reduce expenses and save up money for the future. It is possible to do so by inculcating simple habits which shall lead to long term wealth generation and more importantly, a permanent attitude of cutting down expenses.

Here’s how you can efficiently reduce expenses.

1. Observe

The first most crucial step to reducing your expenses is to observe keenly your consumption habits – of

products and services. A monthly reduction of expenses is possible only when you cut down from the

everyday expenses list. There might be underused products/services/subscriptions which might be severely eating up your wealth in unobvious forms. The bottom line is to use only how much you need. Unsubscribe from unnecessary subscriptions and sell the articles you no longer need.

2. Utilize energy saving devices

An enormous portion of your income is taken up by electricity. This can be cut down by using CFL bulbs instead of the normal ones, they are 4 times more efficient than the normal ones.

You can also push down phantom energy loads, that is power utilized by appliances even when the

switch is turned off but plugged in. Such loads add up to 6 % to your bill per month. Devices such as air conditioners, laptops and refrigerators are available in energy star appliances. For cutting down

expenses on water geyser, you can buy the solar water heater.

3. Analyze insurance risk

Investing in insurances is a great way of covering colossal damages. But you may also end up paying

huge premiums just out of obligation to stay insured from improbable possibilities. Hence it is essential to analyze the insurance risk.

This includes whether the insurance is worth having or at least worth paying a huge premium for. In case of less probability of damages, you might as well settle for lower a monthly premium plan.

4. Invest in maintenance

The appliances, furniture, and overall house, need maintenance. It is crucial for them to live a longer life. That way, they won’t collapse sooner than they were meant to and repairing cost will be omitted or at least reduced.

This means oiling their parts, cleaning them regularly and changing them if needed. If a laptop’s battery is unchanged for a long time, it can hamper with the performance of the laptop even after it is changed. So, it is also crucial to replace some parts just in time.

5. Stick to the list

If you think about how much more you buy at the supermarket than needed, you’d be surprised. It is very easy to be lured by promotional packages, bulk discounts and other such marketing strategies. To learn how to reduce expenses, you have to stop falling prey to consumerism.

The only way to reduce expenses is to make a list before going to the supermarket and stick to it. Only when you really ‘need’ some product in bulk, ask if there is a bulk discount on that.

 In conclusion

Drop excessive alcohol/cigarette consumption, they can damage your health and add to medical bills.

Invest in a good WiFi plan instead of a cable operator, that way you can watch just the part you want to. Repair leaking taps to save up on water bills.

 Reduce expenses of mobile bills by buying talktime/SMS benefit packs suited to your needs. Buy fresh, local produce rather than exotic imported veggies whose prices are tripled in transit.

Leave a Reply

Your email address will not be published. Required fields are marked *