Financial Smarties: Simplify Your Expenses

In our post Financial Smarties: Know How Much You Spend, we asked you to create a list of expenses.  Now it's time to take that list out and look at it a bit more closely and answer this question: Could you benefit by cutting back on your expenses to:

• pay down debt and extra money will help you work your debt pay down more quickly?

• have extra money to save for a larger purchase such as a vacation or a downpayment for a new vehicle or home?

• gain control of where your money is going?

If so, then write your "why" on the top of your expenses list (ex. I want to simplify my expenses so I can buy a car next year.). Depending on your goal or timeframe, here are some tips on how to cut expenses and make that goal a reality:

Subscription Mania: So many forms of entertainment are paid through a monthly subscription.  Sometimes the monthly costs don't seem like a lot - until you add them all up.  If you want to cut subscription expenses, start by cutting subscriptions that you no longer use but may have forgotten until you created your expenses list.  Also, do you have multiple music subscriptions?  Or does your family each have their own subscription that could be condensed into a family subscription? 

Find A Better Deal:  Check your insurance policies. Are you getting all the discounts available to you? Can you get a better deal if you bundle your policies in one place? If you enjoy cable or satellite tv, can you find a better deal with another provider? Or have you considered cutting the cord and streaming instead?

Be A Chef:  Okay, so maybe you're not a chef, but could you make more of your meals? Looking at your list of expenses, how much could you save each month if you made your own coffee at home? Pausing grocery delivery, meal prep or food delivery service are also ways to cut expenses.

As you find ways to cut expenses and save money, be sure to put the money saved toward your goal either by paying down debt or putting it into a savings account. It's also a good idea to track your expenses and compare from month to month.  The progress you make is just another step toward becoming a financial smarty.