In the aftermath of the pandemic, more and more households are struggling to make ends meet. The cost of living is rising at an astronomical rate, and gas prices are at an all-time high, which means the only way for some families to make it is to reduce their monthly household expenses.
More often than not, that is easier said than done. Certain people believe that only the most drastic of efforts can help to save money when the truth is that even small, manageable changes can make all the difference.
Below are five ways that you can reduce your monthly household expenses without feeling punished or deprived:
1. Budget
If you don’t have a monthly budget yet, you need to change that as soon as possible. Until you write down and keep track of your spending, you won’t realize just how much money you waste every month.
Even the seemingly harmless purchases, like takeaway coffee, can leave a dent in your budget over time. Start your budget with the necessary items like food and utilities, and add luxury items as and when you can afford to.
2. Cut Back On Luxury Items
Luxury items, while fun, can be damaging to your immediate and long-term financial health. Going on holiday or out to dinner multiple times a week will dramatically affect your ability to make ends meet.
Cut back on luxury items like designer makeup, salon trips, and non-essential food items like pricey cuts of meat or expensive wine.
3. Install Solar
Most solar owners can save as much as 50 000 dollars over the lifetime of their panels. Solar is a renewable energy source, which means that your costs will not increase over the years – unlike electricity, which goes up at least once a year.
Get a complete home solar system installed in your home today and start saving money sooner rather than later.
4. Reduce Your Monthly Subscriptions
You need to re-evaluate your monthly subscriptions and decide which ones you need to keep and which ones can get the boot. Keep the subscriptions that you use and get value out of, such as streaming services.
If you have multiple streaming services then choose which ones get to stay and which ones should stop. Things like a gym, coffee, or wine subscriptions will quickly reduce your cash flow and inhibit your ability to reduce your monthly household expenses.
5. Carpool
If you live in an area that doesn’t have the best public transport, instead of driving to work and back every day – consider joining or starting a work carpool. Carpooling will not only save you money every week, it will also free up your morning commute times for important things like checking your emails or keeping in touch with your friends.
By sharing the trips with co-workers, you will all save money on gas and reduce the cumulative wear and tear on each of your vehicles. Take turns to drive – if there are enough people in your carpool, you could end up needing to drive only one week in a month.