Living alone can be an expensive affair, especially since the costs of everything go up every year. One way to supplement your income might be to find a part-time job to help, but what if you don’t have the spare time? In addition to time, you’ll also have to invest your energy and it can get pretty exhausting. Instead of increasing your income, you can look at cutting expenses. While rent and utilities are not expenses you can compromise on, there are other areas you can cut back on. We’ve compiled a list of how to cut expenses so you can reduce cost of living, so dive in!
1. Track Your Expenses
The first step to figuring out how to cut expenses is seeing what your expenses are. There are many ways to do this but the easiest would be to start writing down every expense. Whether you use your card or cash for it, make sure to write down the amount spent and the category.
If you like, you can also go back to the previous month or two and figure out how much you spent and on what. You can go the tradition pen-and-paper way or use a spreadsheet. The next step would be to see how many expenses are essential and how many you can cut out.
2. Budget, Budget, Budget
Before you figure out how to cut expenses, it’s important to know how much you have to cut. Making a budget can be taxing but you don’t have to make it overly detailed. A good, simple budget will simply have three categories – income, fixed expenses, extra expenses.
Once you have the first two categories filled, you’ll have an idea of how much you have left. Do you intend to save some of that? How much? After accounting for that, you can figure out what other expenses you can afford.
3. Reduce Housing Expenses
Budgeting and tracking expenses should show you how much of your income is going towards rent. You can find ways to reduce living cost at your apartment. For example, if you pay for a parking space, consider giving it up especially if you aren’t using it. If there are repairs to be done and they’re small enough, try doing them yourself!
But, if rent is cutting into your income to the point of you not having enough for other basic needs, it may be time to look at alternatives. If you’re renting, look for a cheaper apartment. Even if it isn’t in the most convenient location, you’ll end up saving a chunk of your paycheck!
4. Experiment With Home Recipes
How to cut expenses while living by yourself? A cost saving but fun way to do it is cooking more meals at home. This way, you can save a lot of money that you’d otherwise spend on takeout.
With endless videos on YouTube and recipes on the internet, you’ll never run out of new dishes to try. It’s pretty easy to find recipes that are quick and require less effort if you’re in a time crunch. Another tip is to make a lot of one dish when you have time on the weekend and freeze it so you have enough for the week.
5. Cut Down On Subscriptions
When you’re thinking about how to cut expenses, maybe subscriptions are not the first item that come to mind. But when you really think about it, how many subscriptions do you use regularly? If you subscribe to multiple streaming services but always find yourself circling back to the same one, maybe that’s the only one to keep. Permanently or even temporarily stopping some of your subscriptions will help you reduce cost of living. These subscriptions can also include magazines or memberships that you don’t use often. If you have a gym membership, you might consider working out at home for a bit. Once you’re in a more financially stable situation, you can renew them all!
6. Pay Off Your Debts
It’s harder to figure out how to cut expenses if you have credit card bills outstanding. Paying off your debts can go a long way in increasing the amount of money you have left to save. While it may not be possible to pay them all of immediately, you can increase your monthly payments. This’ll help you pay them off faster and help you in the long run.
Once that’s out of the way, you can also try freezing your credit cards for a short period. It’ll stop you from making impulse buys that you can’t pay for immediately out of pocket. This in turn will reduce the amount of debt that piles up over time. You can also freeze your cards before the debts are paid off. No new charges will be made to your card but you’ll still be able to make the monthly payments.
Another way you can reduce expenses and save money is by finding a roommate. When you have someone to split rent and other expenses with, the financial cost is a significantly less. However, finding a roommate isn’t an easy task. That’s why we recommend using a room finder that’s legitimate. Roomi is one of the best room finders with an unmatched roommate matching algorithm. By allowing you to pick house rules you’re comfortable with, it matches you with people who agree with the same rules. Hopefully, this blog has given you ideas for how to cut expenses!