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How to Drastically Cut Expenses

Keeping The Budget

Keeping The Budget

Compare the total monthly family income with total monthly expenditures. If you have excess money after paying your bills you can save or invest it, otherwise, you have to reduce expenses, increase revenue, or do both.

Analyze your monthly expenses, and set priorities in spending. After you separate money for the inescapable expenses, reduce variable costs to easily achieve monthly savings. 

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How to Drastically Cut Expenses

How to Drastically Cut Expenses

https://lifehacks.io/how-to-drastically-cut-expenses/

lifehacks.io

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Key Ideas

Keeping The Budget

Compare the total monthly family income with total monthly expenditures. If you have excess money after paying your bills you can save or invest it, otherwise, you have to reduce expenses, increase revenue, or do both.

Analyze your monthly expenses, and set priorities in spending. After you separate money for the inescapable expenses, reduce variable costs to easily achieve monthly savings. 

Make The Whole Family Save

When it comes to household budgets and saving, it is important that all family members contribute to cost reduction. 

Distributing savings equally prevents others from feeling injured as the only ones who are deprived of what they care about. 

Be Careful With Credit Cards

Do not carry a credit card with you when you go for a walk. Their ease of use can compel us to pay with it, which puts us at risk of paying high interest.

Plan The Procurement

Track and compare prices in stores and plan a higher monthly food supply.

Leave only daily purchases of bread, milk and basic necessities for everyday small purchases in smaller shops. Major retail chains often offer lower prices or have discount prices, which you can use to purchase monthly.

Treat Yourself Wisely

Spending money towards priorities doesn’t mean sacrificing all nonessentials. Find something that the whole family can enjoy and is not too expensive and set it as a monthly reward for the effort.

SIMILAR ARTICLES & IDEAS:

What a Budget Does

As a personal financial planning tool, a written, monthly budget allows you to plan for how you'll spend and/or save your money each month and also keep track of your spending patterns.

Make a Budget in 6 Simple Steps

  1. Gather every financial statement you can (bank statements, investment accounts, recent utility bills).
  2. Record all of your sources of income.
  3. Create a list of monthly expenses.
  4. Break expenses into 2 categories: fixed and variable.
  5. Total your monthly income and monthly expenses.
  6. Make adjustments to expenses: If you have accurately identified and listed all of your expenses, the ultimate goal would be to have your income and expense columns to be equal.

A Monthly Budget For Your Money

No matter how little or how much money you earn, creating a monthly budget is one of the most important aspects of managing your finances. What gets measured gets managed.

...

The Envelope System

The Envelope system is a way to track your variable expenses like food, entertainment, and drinks.

This method, preferably used weekly, allocates a certain amount in each category in labeled envelopes (food, drinks, movies, etc.). Once the envelope is empty, you are done spending in that category.

How to Create a Good Budget

The principles that make a good budget, something you can stick to:

  • Being Realistic: Being too strict is a recipe for failure.
  • Making Adjustments: A budget is not set in stone, but a fluid thing.
  • A Team Sport: If you live with a partner or spouse, you have to agree mutually on how to budget the financials.
  • Expect the Unexpected: Keep an emergency fund, ideally 3-6 months of necessary expenses.
  • Budgeting the Expected: Certain upcoming expenses need to be budgeted in advance, like property tax, holiday shopping, etc.

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Save On Transport Without a Car

Save On Transport Without a Car

You’ll save far more if you don’t buy a car or sell it if you already own one but can go without it.

If you can use public transportation, you can save quite a bit of money on ...

Save On Transport While Keeping a Car

Carpool to work if you can to significantly reduce wear and tear on your car, save on gas, and take advantage of carpool lanes that might make it easier to get to work.

Check at least once a month to keep the tires on your vehicle properly inflated. Doing so can improve your gas mileage.

Save On Debts

Refinance your home or automobile at a lower rate to save money over the life of the loan and lower your monthly payment.

If your student loans are locked in at a high-interest rate, figure out whether it makes sense to consolidate all or some of them.

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