In today’s world, where expenses seem to be constantly on the rise, finding ways to save money has become more important than ever. Fortunately, there are numerous strategies you can employ to cut your expenses and build up your savings without sacrificing your quality of life.
There are a lot of reasons that you may need an influx of cash. Maybe prices are rising and you overspent. Perhaps, your emergency fund has taken a beating with unexpected expenses. It could be that you recently realized that you have goals which will need to be met sooner than you thought.
Before we dive in, if you’d like to hear see us discuss our top ten strategies in more detail, watch the video, below.
Whatever the reason, sometimes you need some really simple ways you can reduce your budget and gain some quick cash. In the past 35 years, we have developed this 10-point checklist of sorts, which we use whenever we find ourselves in need of some quick cash.
In this blog post, we will explore ten easy frugal ways to reduce your spending and increase your savings.
1. Cut Your Grocery Expenses
One of the largest monthly expenses for most households is groceries. Start by creating a weekly meal plan and a shopping list before heading to go the store. Stick to your list and avoid impulse purchases. Look for sales, use coupons, and consider buying store brands instead of name brands. Buying in bulk can also save you money in the long run.
If you need a quick influx of cash it’s also possible to reduce your food expenses drastically for a period of one to four months. I recently cut our grocery budget to $100 for our family of four in order to meet some specific goals and also to eat up excess items from our pantry and freezer.
2. Cut Subscriptions
Evaluate the subscriptions you currently have and determine if you are utilizing all of them. Cancel any subscriptions that you no longer need or rarely use. Consider sharing subscriptions with family or friends to split the cost. Streaming services, magazine subscriptions, and gym memberships are all worth reviewing.
3. Switch to a Cheaper Provider, Plan, or Product
Review your monthly bills and compare prices from different providers for services such as internet, cable TV, and mobile phone plans. You might be surprised by the potential savings you can find by switching to a cheaper plan or negotiating a better deal with your current provider. Additionally, consider switching to generic or less expensive brands for household products.
Here’s an example.
After years of overpaying for our cell phone bills, we finally switched to Mint Mobile. Now we pay $15 a month per phone. Switching was super easy (even for non-techie people like us). It took 15 minutes to switch and we kept our old numbers. When our boys saw how much money we were saving, they switched too.
If you’re looking for is an amazing deal to make the switch … then we have one for you! Mint has an extra special offer specifically for Under the Median. If you sign up before July 14th using our Mint Mobile affiliate link, you can get their unlimited plan, which is normally $30 a month, for JUST $15 a month.
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4. Stop Eating Out
The average American family of four spends over $3000 a year on eating out. The problem is: we tend to think of eating out in terms of a single evening or event. We don’t stop to think about the fact that we just went out to eat three days ago.
We eat out based on what we feel, not based on our budget. It’s a quick fix for an empty stomach, but it will rob you of your resources. You are lliterally “eating up” your budget money. We don’t put eating out into the proper context of how much it costs over time.
Eating out, whether it’s at restaurants or ordering takeout, can quickly drain your budget. It’s critical to avoid calling for takeout or hitting the driving through on the way home from work.
To solve this problem, know what you have on hand at home, embrace home cooking, menu plan, and prepare your meals in advance. Make it a fun and creative experience by trying new recipes and involving your family. Not only will you save money, but you’ll likely eat healthier too.
If you need help, I put all my forms that I use for tracking what ingredients I have on hand in the house, menu planning, and grocery shopping together in an awesome Menu Planning eBook bundle.
5. Cut Your Overall Budget by Ten Percent
One of the most effective ways we have ever found to create margin in our budget and cut expenses is by doing what we like to call “The 10% Challenge“.
Here’s how the challenge works.
Carve out 20 minutes in your schedule to sit down with your spouse or significant other. Look critically at your budget. Take a thorough look at your monthly expenses and challenge yourself to reduce each category by ten percent.
Write a list of ideas and strategies that you’d like to try. This could mean reducing your entertainment budget, finding ways to save on utilities, or renegotiating your insurance premiums.
You’d be amazed at how quickly and easily this can be done. Small changes in multiple areas can add up to significant savings.
6. Cut Discretionary Spending
What is discretionary spending? It’s lifestyle spending. Spending money on something that is a choice, not a necessity.
This type of spending often leads to what we call “holes” in our budgeting process. This is where money is seeping out in ways and places that we never intended.
It may be time to stop to analyze or realize the impact of discretionary spending on your personal savings rate.
Evaluate discretionary spending, such as shopping for clothes, gadgets, or home decor. Before making a purchase, ask yourself if it’s something you genuinely need or if it’s more of a want. Consider implementing a “cooling-off” period before buying non-essential items, giving yourself time to reflect on the necessity of the purchase.
7. Pay with Cash
Using cash instead of credit cards can help you become more aware of your spending habits. When you physically see the money leaving your wallet, it can make you more conscious of your purchases. Set a weekly or monthly cash budget and make a commitment to stick to it.
8. Drive Less
Combine your errands and plan your outings efficiently to minimize travel costs. Consolidating trips helps you save on gas and reduces wear and tear on your vehicle. It also saves you time, allowing you to be more productive and make the most of your day.
Carefully plan your outings and shopping trips. Devise a route that makes the most out of your driving in terms of the least number of miles driven and overall gas economy. Figure out the cost per trip.
Alternately, you could leave the car in the garage and ride your bike or walk.
9. Sell Some Stuff
Declutter your home and sell items that you no longer need or use. Platforms like online marketplaces and social media groups make it easy to connect with potential buyers. Not only will you generate some extra cash, but you’ll also create a more organized and peaceful living space.
10. Buy Needs, not Wants
Before making a purchase, pause and evaluate whether it’s a genuine need or simply a desire. By distinguishing between needs and wants, you can prioritize your spending on essential items and delay or avoid unnecessary purchases altogether. This mindful approach can lead to substantial savings.
Cutting expenses and saving money doesn’t have to be a daunting task. By implementing these ten easy frugal strategies, you can take control of your finances and build a more secure future. Remember, even small changes can make a significant impact over time. So, start today and embrace a frugal mindset that will empower you to achieve your financial goals.
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Your Turn
How do you save money fast? Are there specific areas of your budget where you know you can cut back and save a quick buck? Tell us about it in the comment section.
