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Spending money is part of our daily lives. Some of the expenses we incur while spending include paying rent, fueling the car, entertainment, food, and clothing.
These are just some of the major and important ones that almost everyone has to incur. The size of everyone’s expense is determined by various factors including the importance of the expense and income levels.
Spending however diminishes the income thus affecting our abilities to save and invest. To pursue these things, it is recommended that one should spend less than they earn. However, this simple statement is very difficult to implement.
New spending demands and opportunities keep arising on a daily basis and by the time you notice, all these things have gotten you into debt.
To help you in cut back on spending, I have compiled a few simple steps that you may need to take.
Buying in bulk
Every day we are buying many different things for different uses. Pricing is very important when budgeting so you should be very keen on it. Bulk buying attracts huge discounts than when you buy things individually or frequently.
Buying in bulk also reduces the frequency of visiting the shops or supermarkets which is a cost in itself and is time consuming.
These discounts help in reducing the overall costs and ensures there is ultimately more money in your pocket.
Cooking at home
Food is one of the largest cost centers for many people. This is because we have to eat, and not just once but many times during the day and night.
Healthy eating requires a lot of commitment in costs. These costs can be quite heavy if one is constantly eating out.
I know everyone craves a burger or a nice dinner at a restaurant but if all these activities are done quite so often, they can create a dent in your pocket.
It is better to ensure that you have a home-cooked meal oftentimes than you eat out. In fact, if you can avoid eating out at all costs, the better for you. Eating out is very expensive and to some extent unhealthy.
We rarely check our portions when we eat out and also we are unaware of the preparation processes of the meals. Always prepare your own meals, as it will save you huge amounts of money.
When you eat out, you not only pay for the cost of food but also other overheads associated with preparing the food keeping in mind the business person must make a profit too.
Insurance is the savior when unexpected costs arise. We are once in a while faced with emergencies that require a huge amount of money to handle.
These can be medical emergencies, accidents, or legal challenges. The nature of these costs may require immediate settlement.
Some of these costs are so huge that paying them may leave you bankrupt. Insurance helps during such occurrences. It cautions one against these costs and ensures continuity.
The knowledge that one is covered from emergency costs helps in planning and can give you peace of mind.
Coupons and Loyalties
To retain customers and grow the brand, most businesses are constantly offering coupons and loyalties to their clients. These coupons and loyalties are redeemable at various outlets.
Coupons usually help to reduce costs as per the terms of the different providers. The different industries offering them may vary from time to time.
They can be offered by banks, supermarkets, restaurants, clothes stores, and many more. What is interesting is that they help in eliminating or subsidizing your costs.
Understanding this can help you to maximize the benefits offered by coupons and loyalties. You can do your own research to understand which businesses are offering them and at what terms.
I would also recommend taking any points cards that are offered as well. The systems may not be the same in different countries but the concept is similar.
I love Amazon for the simple fact that they are global providers and constantly have great offers. Some companies offer universal rewards or cashbacks, meaning you can redeem your loyalty points at any of their recommended stores globally. Swagbucks is one of my favorite sites for saving money with coupons, promo codes, sales, and cashback.
Swagbucks can be redeemed when you shop for clothes, electronics, travel, groceries, gifts & homeware. You can also get free gift cards and cash for taking paid online surveys and free trial offers.
You can use this link to get a desktop extension and learn more about it. Knowing about different companies coupons and loyalties systems will assist in choosing where to shop, and will also eventually save you more cash.
Avoid impulse buying
Impulse buying is usually a result of lack of proper planning. When we impulse buy, we tend to buy things that were not planned for or things that we do not need.
This ends up increasing the spending costs significantly. To slow down on impulse buying, you should always prepare a shopping list with the items and the estimated costs.
This helps to avoid temptations of buying items randomly. Sticking to the list ensures only the necessary items are bought.
We now have tools such as spending planners or spending tracker apps that can help with such tasks. You can read more about some of these apps in this article here.
I know it takes time to learn how to stick to a plan, but over time, it greatly helps to cut back on spending.
Transportation is a necessary activity as it involves moving from one place to another. It is a daily task whether it is going to work, visiting friends, going shopping and many more.
There are many costs involved with transportation dependent on the mode of transport. For this reason, I would recommend carpooling instead of using personal cars. This helps in splitting the travel costs.
Today, there are digital technologies that allow people to pool transport online and share the related costs. In the long term, this approach is cheaper as compared to each individual using his or her own car.
These are some of the many ways that I use to minimize spending. While they may not apply or be suitable for everybody, I do hope they will assist anyone suffering from any of the highlighted challenges.
I am curious to know, what are some of the ways you use to cut back on spending? Comment down below.