Whether you’re saving up for a new home, car, vacation, or just wanted an emergency fund, you might need to cut your current living expenses.
While it can be an adjustment, cutting your expenses and seeing the effects on your finances can be a fun and rewarding experience.
We’ll cover a few ways to significantly cut your expenses so that you have more money to purchase the things that truly matter.
1. Switch to Solar Power to Reduce Energy Bills
Going solar has plenty of environmental benefits. However, one of the best reasons for switching to solar is the cost savings. Solar power comes with reduced electricity bills, tax credits, and low maintenance costs.
Depending on your household’s energy consumption needs, you can significantly eliminate or reduce your monthly electricity bills. Portable power stations are the easiest way to begin using solar power since it doesn’t require a complicated setup. Also, you can store energy to power your appliances, especially during peak hours, when electricity is the most expensive.
If your solar panels produce excess energy for net metering, reduce the electricity bill.
The Solar Investment Tax Credit (ITC) provides a rebate to people that move to solar. The ITC provides a 26% rebate, but the rebate will decrease to 22% in 2023.
2. Cut Down on Food Expenses
Food is among the top of the list when it comes to household expenses. A few extra nights eating out or choosing certain food brands can quickly blow up your reasonable budget. Finding different ways to cut down on your food expenses is vital.
First, we recommend purchasing non-perishable food items in bulk to save money. Also, stick to generic brand names since they’ll cost less.
Always create a grocery list before going to the supermarket. It’s easy to be enamored by all the unique brands, food types, and flavors. Pre-plan everything you need for the week, and don’t add anything extra to your cart.
3. Save Money on Subscriptions
Subscriptions are recurring expenses that can leave a significant dent in your savings. We have so many subscription plans that it’s hard to track how much we spend. Just on video streaming services, Americans subscribe to 3.4 services, with the average cost being $8.53 per month.
Some of the most common subscription services consumers are:
- TV subscription
- Internet subscription
- Cellphone subscription
- Smartphone application subscriptions
- Cloud storage subscription
- Entertainment subscription (Netflix, Hulu)
- Food delivery subscriptions
Often, you can negotiate your subscription with the service provider to get the best rate possible for your desired plan. Most businesses understand that acquiring new customers costs way more than retaining existing ones. If competitors offer better rates, you can show them to your provider, who will likely match the offer.
Also, consider paying annually rather than monthly. Most companies provide a sizeable discount for customers that pay annually rather than monthly.
Wrapping It Up
Deciding to cut expenses can be difficult. However, knowing that you’re moving closer to your financial goals can be liberating.
The strategies listed are proven to work, and putting them into practice will allow you the financial freedom to increase your savings or have the funds to buy things that matter to you.