Reducing unnecessary expenses is what helps us in saving. Yes, those savings when invested well can give you good returns and a safe option that you can use for unforeseen expenses and emergencies. Making a list of expenses that are necessary every month will let you know the amount of saving that is possible if you reduce unnecessary spending.
We have a list of 7 expenses that you can try to cut down in your household expenses;
House Rent Expenses:
Saving on house rent is possible by leasing, buying a new home via a loan and renting it. If the rent received is more than the home loan EMI that you repay, then you save a good amount every month and can also avail of tax benefits. Also, when on rent, always keep a balance of factors like the house being near your workplace will help you save on transport costs.
Expenses on Utilities:
Electronic gadgets, today consume less power as they are manufactured keeping power-saving features in thought. Yes, the new machines come with energy-efficient tags. Always remember that your old fridge, TV, bulbs will take up a lot of electricity units and hence you will pay more every month. Replacing these old machines with new ones will help in saving money on utilities every month.
Grocery and Food expenses:
Keeping a budget for eating outside will help you understand when you’re overspending. Such fast food always affects your health and you then spend money on medicines prescribed by the doctor.
Similarly, grocery shopping must be done wisely. Always make a list and stick to it. We often end up buying things which have exciting offers although we don’t need them.
Expenses on Vacation and Travel:
Always plan well and research before travelling anywhere. The best time to visit and minimum pricing is possible when plans are made 3-5 months in advance. This helps you save a lot of money on flights, hotels and even last-minute shopping.
With everyone moving to cell phones for media, you must reconsider the amount you pay for a DTH connection. Yes, if the use is minimal, shifting to a cable connection sounds feasible.
While I agree that using your vehicle always helps, you can start carpooling which will help you save cost on fuel and also save the environment. Also, using public transport as much as possible will reduce your expenditure.
Impulsive buying expenses:
Perhaps the most important expense on the list is impulsive buying. In today’s time, we impulsively buy a lot of things that are not needed. These costs are very high. To avoid this, keep aside all money needed as expenses for the month. With whatever amount remaining, you’ll have a fair idea of how much you can spend on impulsive buying.
Sometimes it is indeed very tough to manage such expenses. Hence you can apply for either a Personal Loan or a Credit Card.