7 Ways to Significantly Reduce Monthly Spending

Reducing monthly expenses from your budget isn’t always easy. I constantly ask the question, “How do I save more money?” Previously I mentioned a few quick ways to reduce your spending. Today, I suggest a few ideas for reducing your expenses in more significant ways. The items on this list may take a little more time to accomplish, but they are worth it to save that cash!

1. Save money on auto and/or home insurance.

If you’ve been with the same insurance provider for a while, you might want to consider looking and doing a little bit of research to see if you can get a better rate and reduce your monthly expense. It’s worth shopping around as it could save you a whole heck of a lot. I do this every few years and like to look at the big picture in terms of overall cost, the value of the service, and how reputable the company is. It doesn’t hurt to get a few quotes and compare.

2. Buy used items and save cash.

You can save a lot of money by buying second-hand items.  Over the years I have saved tons of money by doing this. This can aid in reducing your monthly shopping budget. You could consider buying the following items used:

• Cars
• Clothes
• Toys
• Books
• Furniture
• Appliances
• Electronics

3. Plan all purchases. 

You should always plan your purchases so that you are buying items with intention. My minimalism journey has helped me in many aspects of my life with this. A huge benefit is that it’s significantly reduced how much money I spend month to month.

Here are some tips and guidelines to help you plan and shop.

• You should never buy the first item you find. In order to save money on your purchases, you really need to do your homework to find the best-valued item for your money.
• Search for a quality item. Look for something that is well made. Quality items last longer, meaning you purchase them less frequently.
• Take your time! There are good times to buy various items. For example, when new models are released is when you typically can find a great deal on the previous year’s model offering you a great discount!
• Always sleep on it when you are making a decision for a large purchase. There is no way I am going to sign today so that I can save 10%, etc. I want to make the best decision because it is what is best not because it is what is on sale.
• Delete the sales ads from your email. You do not need to be told when to go do your shopping. Sure, the company is sending you messages of sales to “save” you money. In reality, they are sending you messages to tell you to “spend” your money. You are not saving money when you buy purchases that you do not need. Saving is keeping that money in your savings account!

4. Sell your car. 

Selling your car might be beneficial depending on your circumstances. If you have a large car loan and are struggling with debt, having issues with making ends meet,  or have decided to be debt-free, you may want to consider selling that car so that you can use the cash to buy a less expensive one or get a smaller loan that is more affordable and that you can pay off sooner. The goal is to buy the best quality car within your current financial means. Read my post to learn how to significantly save money on car expenses.

5. Consider downsizing your house.

If you are in a lot of debt and have too much on your plate, then you should seriously look at downsizing your house if you are a homeowner. I know that this is really hard to think about because it is also your home, but it is something that you should give serious thought to because it could have a great impact on your overall cash flow. You can find a new home that might help you sleep better at night. The percentage of your overall budget that goes to your house should not exceed more than 20%-30% of your take-home income.

6. Eliminate cable. 

While this one is also a quick way to reduce your budget, this one likely has the potential for large cost savings as well. This one I think is very hard for people to part with, so it’s worth mentioning again. When we eliminated cable from our budget, we decreased our expenses by $80/month. This is a pretty significant amount! There are so many options for streaming TV to reduce your expenses.

7. Find a new cell phone provider or package.

You can save pretty big when shopping for a cellphone provide. I pay $40 in total per month for two lines! How much are you paying? We use a prepaid service that is bundled together. We use the auto option to save money. We only buy phones with, you guessed it, cash! You should NEVER finance a cell phone!

Now go ahead, and do something different! Your budget will thank you for it.

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