There are numerous ways you can improve your financial status: by decreasing your expenses and increasing your savings rate. Instead of saving a few dollars, you can save a hundred or potentially thousands of dollars using an app for saving money
You can achieve this by cutting on huge expenses such as transport, housing, and food. Reducing these big expenses will mean that you save more compared to reducing small costs, and thus your financial status will surge.
Here are a few tricks on how to save big by lowering these three important expenses:
Latest statistics from the Bureau of Labor Statistics indicate that housing alone consumes 33 percent of your annual expenditure. The average housing category costs around $18,130 nationwide; they include rent, utilities, telephone service, and mortgage payments. Here are a few ways you can save big by lowering housing expenses:
- Get a roommate – one of the best ways to save money without making significant sacrifices since you will split all costs with your roommate. To stay comfortably, screen for a roommate, this can be a family or a friend.
- Downgrade on space – since most of the time you shop for a house, you find homes with a huge area such as a yard that requires high maintenance. Is it something you want? You can do without it and so it is advisable to look for a fancy small house that fits you. This will reduce your housing expenses and ensure you save more.
- Move to a suburb – housing costs in suburb areas a lower than in big cities. In the suburbs, you can get a house of similar quality as one in the town at a lower price, letting you save more.
- Refinance your mortgage – Refinancing your mortgage means that you save much on interest rates since interest rates keep fluctuating.
- Using technology to save on utilities – technology has made it easier to operate certain housing expenses to save on costs. You can electronically control these expenses; lighting controls and timers, energy-efficient bulbs, programmed thermostats, and use of solar panels.
You can also share housing costs such as rent and mortgage with your spouse.
Transport is the second-highest expense; it represents 17% of total annual expenditure. Transport expenses include gasoline, car insurance, and vehicle purchases. Transportation expense is far much the most comfortable category of costs to control. Here is how to reduce your transportation expense:
- Get a bike or go on foot – Your office or work station may be a short distance from your home. You can decide to walk or cycle to work to save your transport expense while keeping fit.
- Use public transport – public transport will save you a lot of costs associated with transportation; gas, parking, and car maintenance are among the expenses you will save on.
- Carpooling – you can recruit workers from your estate and carpool to work. You will save a lot of gas and reduce costs since you can split among passengers.
- Compare insurance costs – most insurance companies offer similar packages, what differs is the cost of insurance. You can check available insurance packages and subscribe for the cheapest.
- Proper car maintenance – taking good of your car can help you save big. Ensure your tires are well inflated, check the oil regularly and other car maintenance practices. This will enable you to run efficiently, therefore, saving more.
There are many ways to utilize your transport expenses to save much. If you adhere to the above practices, then you will save more within every month just from your transportation expense. The app for saving money will enable you to save more and reduce on expenses.
Statistics show that food accounts for 12.5% of your annual expenditure. The food expense includes meals that you buy away from home, such as lunch at work and meals at home. Here is how you can save more from food expense:
- Become a vegetarian – You will realize fruits and vegetables are not only healthy but cheaper compared to meat and other processed products. Eating a diet rich in vegetables will significantly reduce your food expenses.
- Limit alcohol – Drinking alcohol will consume most of your expenses. You need to reduce the cost of alcohol and only take it on special occasions.
- Limit eating out – Eating out is fantastic, but don’t dine out every day as it can burn a hole in your pocket. Reducing those dinners to just two a month can make a whole difference. Carry packed lunch to work if the company policies allow it.
- Plan your menu two weeks before grocery shopping – Planning for shopping will ensure you adhere to a set menu for the period and avoid any extra expenses. You can also shop in bulk since you will receive discounts, thus saving much.
- Compare prices – Food prices differ in different stores. You can compare prices in your local market and also check for discounts
Food is essential for survival, and thus, you should ensure you have enough, eat healthily, and save at the same time.
It is essential to be aware of how much you have spent on these expenses so that you can minimize them. Adherence to the above ways of reducing these expenses will ensure you save more. You have to think big to save big and lower the three important expenses. Move to a cheaper apartment, cook in bulk, and ride a bike to work will enable you to significantly reduce your expenses. Using an app for saving money will increase your savings, and offer you convenience.
Kevinson Libama is a professional freelance writer who writes on personal finance, real estate, and digital marketing. For more money saving tips, check out this blog. You connect with him on LinkedIn.