Smart Money Moves: Cutting Common Expenses to Save Money
In today’s world, it’s easy to get caught up in the hustle and bustle of life and forget to save money. With the cost of living increasing, it’s important to make smart money moves and cut common expenses to save money. Here are some tips to help you identify common expenses everyone has but doesn’t need, keep what you really want but eliminate the things you don’t need, and develop a budget that promotes saving. That monster energy drink and honeybun you grab at the gas station every morning on your way to work will save you at least $5 a day or about $1800 per year.
But maybe just maybe that Monster energy is what get you through the work day and is hard limit when it comes to giving something up. Surely you have a subscription service like Netflix or Youtube Music that you never use anymore. That’s the things you need to be eliminating. Starting small I believe will increase chances of sticking with a budget and once you see what saving & investing a little bit money does when it starts adding up, you’ll increase it with time. With time you’ll develop more goals and find new ways to achieve them. Those new ways usually end up being cutting even more expenses that you once wouldn’t do without.
I’m a Leo and we’re well known for our lavish living lifestyle. I’m pretty good with doing without lots of wants and focusing on needs until it comes to food and eating out. I don’t mind paying 5x the amount it would cost to cook and eat at home from a decent restaurant or even take out. And I’ve always been a good tipper. Always felt if I can’t afford to tip good I shouldn’t be eating out to begin with.
Identifying Common Expenses Everyone Has But Doesn’t Need
The first step to making smart money moves is to identify common expenses everyone has but doesn’t need. According to a survey conducted by the National Foundation for Credit Counseling, the top five expenses people waste money on are eating out, entertainment, shopping, vacations, and hobbies. These expenses can add up quickly and can be easily avoided. For example, instead of eating out, you can cook meals at home. Instead of going to the movies, you can rent a movie or watch one online. Instead of shopping, you can look for deals online or wait for sales.
Keep What You Really Want But Eliminate The Things You Don’t Need
Once you’ve identified the expenses you don’t need, it’s time to keep what you really want but eliminate the things you don’t need. This means cutting back on unnecessary expenses and focusing on the things that are important to you. For example, if you enjoy going out to eat, you can still do that but limit it to once a week or once a month. If you enjoy shopping, you can still do that but look for deals and discounts. This will help you save money while still enjoying the things you love.
Developing a Budget that Promotes Saving
The last step to making smart money moves is to develop a budget that promotes saving. This means setting aside a certain amount of money each month for savings and sticking to it. It also means tracking your spending and making sure you’re not overspending. According to a survey conducted by the American Savings Education Council, only 41% of Americans have a budget and only 28% of Americans track their spending. Developing a budget and tracking your spending will help you stay on top of your finances and save money.
I love excel spreadsheets. My budget spreadsheet is pretty complex that shows me how much I can save per year by eliminating this or that. Eliminating this & that was a lot of various $20/month subscriptions that I really didn’t use or need. Finding a way to save & invest $100 month will get you $1200 a year. If you make good investments dollar cost averaging good blue chip stocks that pays dividends in a diversified portfolio you can probably get about 9% return or better. Plus once you get about $1200 if you’re doing DRIP to re-invest dividends you’re can probably get about another $100 a year just from dividends.
Making smart money moves and cutting common expenses to save money is an important part of financial success. By identifying common expenses everyone has but doesn’t need, keeping what you really want but eliminating the things you don’t need, and developing a budget that promotes saving, you can make smart money moves and save money. With a little bit of effort and dedication, you can make smart money moves and achieve financial success. When I say save money I’m suggesting saving money in your budget to allow you to have money to invest in micro-investing. Acorns is the easiest for newbies and I’ve actually gotten better returns with them than my own stash portfolio. But Stash gives you better control over what stocks you can pick. And with Stash I got a steady flow of dividends paying out to me each month. Those dividend payouts are buying more stock of the stock paying the dividends increasing my payouts over time.