5 Ways to Reduce Day-to-Day Expenses

5 Ways to Reduce Day-to-Day Expenses

Put Some Extra Wiggle Room in Your Budget with These Tips

Overspend on a major purchase such as your home or automobile and you are sure to notice. The monthly payments and accumulating debt will be a challenge to pay, and your daily interactions with the item/asset you purchased will remind you about the bad decision that you made.

Overspend on a daily expense, however, and you may go weeks, months, or even years without realizing your mistake ‐‐ even if the net cost of that expenditure is far greater than the excess price of a new car or an oversized home.

Below, we discuss 5 simple solutions to insidiously expensive money sinks that many people ignore for far too long.

  • 1. Pack A Lunch. Eating out can easily cost 3 or 4 times as much as packing a lunch ‐‐ and if that isn’t bad enough, you should keep in mind that most home‐prepped meals are far healthier than their fast food counterparts!

  • 2. Carpool and Park Smart. Between the cost of fuel and parking, the daily commute can consume a dishearteningly large percentage of your daily earnings. Carpooling and/or using park‐and‐ride public transit services are two good ways of reducing such costs.

  • 3. Limit Bad Habits. From chocolate bars to Friday nights at the bar ‐‐ many of us spend a great deal of money on unhealthy bad habits that offer little to no value in return. There is nothing wrong with indulging every now and then, but limiting compulsive spending on consumable goods is one of the best decisions you can make for yourself and your bank account.

  • 4. Find a Phone Plan that Works for You. Many “affordable” phone plans (particularly pay‐as‐you‐go type subscriptions) are actually more expensive than their conventional counterparts. Analyze this expense carefully ‐‐ and avoid the temptation to constantly “upgrade” your phone to a model that hardly even boasts new features

  • 5. Consider Generic Medications. Many people spend a large percentage of their paycheck on medical costs ‐‐ and while some of these expenses may be unavoidable, others are quite easy to reduce. Case in point: generic medications are legally obligated to contain the same active ingredients as their name‐brand counterparts, yet frequently cost as little as 10% of the original!

Learn more about smart money management by visiting the Madison Monroe and Associates Blog today!

Comments, please

Comment Form is loading comments...