5 Tips to Cut Down on Your Monthly Expenses
The cost of living in Singapore, like any other part of the world, is steadily increasing. However, Singapore continues to top international cost of living comparison surveys. You might currently be saving for your bto launch which will require a substantial amount of funds. This is where the importance of saving comes in handy.
There are mainly two options for anyone seeking to improve their financial position. They can either work to increase their income or cut back on their expenses.
The best way to improve personal finances is by using a combination of the two strategies mentioned above. Even so, many people start out with cutting back on expenses.
The following are some areas to consider when starting out with cutting down expenses.
- Cut back spending on entertainment
Entertainment is often the first area that people look to when they think of cutting back expenses. This is an area that often eats into personal finances slowly. People often don’t realize just how much of their money goes into entertainment.
There are various things that can be done to cut down expenditure in this area. These include:
- Canceling club membership. People often pay membership to the country club or local gym every month without a second thought. However, if they are honest, they probably use these services once or twice a month. It certainly isn’t worth spending money on services that aren’t used.
- Rethinking cable. Most people can find cheaper ways of accessing their favorite shows if they try. Most people watch at most three out of the hundreds of channels that are provided by their service provider. It may be cheaper to opt for a reliable internet plan and watch shows online through Netflix or some other similar service. This way, you can also cut back on spending money for movie tickets at a cinema in Singapore.
- Choosing free activities. These may include going to the park, visiting the local library, going for a hike or playing a sport.
- Cut down on energy consumption
Energy bills offer another great area in which people can cut back on their month on expenses. There are various ways that energy consumption can be cut down.
- Installing LED or CFL light bulbs. These are three times more efficient than the traditional incandescent light bulbs.
- Turning off lights and electronic devices when not in use. Also ensuring devices are unplugged when not in use will help to reduce electricity consumption.
- Save money on food
Food is one of the biggest expenses on people’s monthly budgets. It’s also one of the best areas to cut back on expenses and maybe even lose some extra weight at the same time.
There are several ways to save money in this area.
- Cooking all meals at home. This can cut down food expenses drastically. It is also a healthier option as people can control the ingredients used in their meals and avoid some unhealthy ingredients often used to make commercial foods taste better.
- Reducing the frequency of eating out and getting take-out. Getting take-out or opting for a meal outside the home can be a time and energy saver. However, both of these options can be a financial drain especially when done often. People should instead seek ways to make eating at home more convenient such as cooking meals in bulk and freezing them.
- Save on transportation
There’s a lot of opportunity for saving when it comes to transportation between car payments, fuel and other expenses.
- Using public transportation. Singapore has an efficient and affordable public transportation system. People can save thousands in car payments, insurance, fuel and maintenance by opting to use public transportation.
- Using a single car. Families with two cars can save a lot by opting to use a single car. They can even make some extra money by selling the second car.
- Carpooling. This involves sharing a car with someone else.
- Re-evaluate your insurance
Insurance is a necessary evil. It helps to save people a lot of money in the event of a disaster.
There are several ways that people can cut their monthly insurance expenses.
- Changing providers. It’s a good idea to shop around to find the best deal. This isn’t necessarily the cheapest deal but that which offers best value for money.
- Bundling insurance. Those using different insurance providers for different products should consider bundling. Many insurance providers offer discounts for this.
- Raising deductibles. Many people prefer to pay higher premiums to reduce the amount they would have to pay as deductibles. However, those who don’t make claims frequently ought to consider switching this up. Increasing deductibles can help to reduce insurance related expenses by a great deal.
There are many other ways that people can cut down on their monthly expenses. The strategies outlined above are simply suggestions. When applied, these strategies can make a significant difference in personal finances. They are therefore, a great place to begin when seeking to cut down expenses.