6 Simple Ways to Save Money on Household Expenses
Every family could use a little extra money at the end of the month. Some benefits include building an emergency fund, extra cash for leisure, and the simplicity of a household that runs efficiently. When it comes to household expenses, the key to saving more is to spend less. With that in mind, here are six tips that can help cut monthly expenses in the home.
Switch Phone Plans
Chances are, there’s a phone plan that’s cheaper than what you’re currently paying. If it’s not possible to switch to a lower-priced plan within the same company, it may still be economical to switch providers entirely. In the modern age, most major cell phone companies offer similar types of coverage, so it’s generally safe to switch to a different provider without losing service quality. Competition between providers can be fierce, so many offer additional perks for new customers, such as a new phone or a free tablet. You can shave a few more dollars off your monthly bill by skipping insurance, going paperless, and opting for automatic payments.
Pare Down Subscriptions
Subscription-based payment models are everywhere these days, ranging from monthly self-care boxes to media streaming services. Some of these may be unnecessary, especially if they’re the upgraded version of free membership. Some subscription-based services might not even be worth it compared to the do-it-yourself version. For example, it may save a lot of time and mental energy to have fresh shaving razors delivered at the same time every month. However, comparing prices yourself and stocking up strategically will save more money in the long run.
Buy in Bulk
Generally, buying certain things in bulk costs less per unit than buying them individually. For families with multiple people living in the same home, buying in bulk has the added benefit of keeping pantries and closets stocked, which cuts down on the gas expenditure of multiple grocery store runs. Wholesale clubs are a great place to buy bulk non-perishables and sundries, such as jarred sauces or toilet paper. Many online retailers sell bulk herbs and spices like peppercorns and chili peppers alongside the individually packaged versions. Other pantry staples, like oatmeal, cereals, rice, and beans, can also be bought in bulk.
Track Monthly Spending
People who regularly track their spending are more aware of their expenses and how to spend within their means. To track monthly spending and formulate a budget, the first step is to read through every monthly statement to see how money is being spent. The second step is to adopt a record-keeping system that allows you to observe spending trends over time. This can be accomplished in multiple ways. Your financial institution may already offer it as an online banking feature. Some people like to build spreadsheets or use one of many financial planning apps.
Always Have a Financial Goal
When you have a financial goal, you’ll be less likely to needlessly spend any money being actively set aside for that goal. The key is to keep it achievable and actionable. Examples of realistic goals include paying off one credit card, saving for a house, or starting a retirement account. A defined goal is also useful for keeping family members working on the same page. Whatever the goal is, aim to have it accomplished by a certain deadline and be ready to move on to the next one once the goal has been achieved.
Buy Generic Brands
Buying generic for most of your grocery items can save hundreds if not thousands of dollars a year. Food products, cleaning supplies, prescription drugs, and personal care products are all available in both name-brand and generic versions. Many generic products are made by the same companies that produce their name-brand counterpart. In most cases, the quality remains the same with some differences in taste or texture, inactive ingredients, or the attractiveness of the packaging.
Nobody likes to struggle to make ends meet, which is why it’s so important to keep spending in check. It’s always good to reduce unnecessary spending to strengthen your financial security. Establish good habits by making small changes today, which will add up over time to produce large results. Try some of the above tips to reduce your spending and keep your finances on track.