As we work ourselves through our lives and learn how to earn a living, what everyone regardless of who we are has are fixed expenses, which comprises of the basic needs for survival, keeping up our daily standard of living.
There are also no way of eliminating these expenses since they’re fixed, so all that you can do is develop innovative budgeting methods to reduce them. By doing so, you can then save and bank some money, which you thought was good as gone.
If you’re able to admit that you may not have the discipline and thus have difficulty with your finances, or are in debt, then adopting a good systematic practice of expense control, along with strict budgeting may be needed to restore your financial house.
Doing so can also free up additional cash, perhaps enough so that you can pay down this existing debt which then prevents you from the unnecessary path which is ultimately bankruptcy.
But to accomplish this goal, what’s needed is a strict plan as well as continued discipline to carry it out. What’s listed is a proven plan of attack, ideas on how you can lower your expenses without lowering your standard of living.
So make it a point to note some of these ideas, and then tailor it to your particular circumstances.
Proven Methods On How To Lower Expenses
Reducing The Number Of Credit Cards
For most, owning several credit cards is a familiar staple of their finances as they are extremely convenient, and as a result, there are many who may have a few of them.
Owning credit cards is a theory of financial control, to make all purchases using a credit card to keep track of all spending, but doing so usually isn’t monitored properly, which usually results in overshooting one’s budget.
Although chopping up all of the credit cards isn’t feasible for many, it’s recommended that you reduce the number of cards to just one or two.
Demanding A Lower Credit Card Interest Rate
A consumer group recently conducted a study based on how easy it was to get a lower credit card interest rate. Most found that just simply phoning their credit card company, and then asking for a lower rate, they got one almost instantly.
Getting a credit card interest rate lowered depends on several factors. Usually, what a bank will do is approve your request once you meet a few conditions:
Getting A Lower Interest Rate
• You’ve got a good credit rating, which means that there’s no “late pay” notations on your current credit report, along with a good credit score
• There’s no high debt to income ratio, while also no big balance owing on the credit card
• You pay off your balance completely every month, and not just pay the minimum payment required
• The credit card isn’t a secured credit card, which are available to those usually with bad credit
Whenever you call and inquire for a lower interest rate, you should be basing your reasoning on the argument that you deserve it, this since you’re an excellent risk, and that you’re also getting offers from other credit card providers.
Always Purchase Standard Clothing
Clothing fads always come and go quickly, which soon becomes outdated within a few months, and ends up at the bottom of your drawer. So instead, purchase excellent quality “classic” clothing which you can wear for years, this since the style or the material won’t wear out. Doing so reduces the frequency of you needing to buy new clothes.
Have A Budget On Your Food
According to a recent survey, those who had no idea on how much they spent on their groceries every month, were 20X times more likely to be drowning in debt, than those who keep a strict budget, and knew exactly how much they spend on their food.
What’s recommended is the following to get your food budget in order:
• Manage your eating out, this since the dinners that you prepare at home are significantly less expensive than eating meals which you pay someone else to prepare for you
• Never purchase what you don’t need. Excellent examples are soft drinks, sugary snacks and baked sweets. Learn to give them up since they’re also a detriment to your health, which reduces your medical and dental bills as well
• Always shop for the best prices by comparing supermarket flyers. Never make it a habit of just shopping at the nearest neighborhood grocer because it’s close by. Driving a few extra miles can save you a lot on the same groceries. Make sure that you check the weekly sales and coupons before setting out
Begin Car Pooling Or Take Public Transit
If you happen to have neighbors who may work close to where you work, or if you have a car pooling coop at work, then take advantage of it. Or decide to park your car at home, and get a monthly public transit pass which saves you gas and parking.
Getting Your Personal Finances In Order
It all begins with you, and you need to realize this. There are a number of excellent money saving methods which puts more money back in your pocket, but it’s strictly your choice to carry them out.
You can draw out a plan to reducing your monthly spending by sitting down and then creating a list of expenditures. You’ll be surprised that by writing them down, you’ll be more committed to stick by them as a discipline.
Then you could use that additional money that you’ve saved to fund your retirement, pay down your debt, or plan that well deserved vacation.