How to reduce Spending
We often neglect our spending even when we are saving. Managing your spending is equally important as saving. It’s essential to develop good spending habits to help you save more effectively.
Here are ways for you to reduce your spending.
1. Lower Your Housing Expenses
One of your most significant expenses is housing. People with income below $50,000 a year spend an average of 36.6% or more on housing.
Lowering housing expenses may seem quite challenging at first, but it is something to consider to reduce additional expenses, and there are ways to reduce that may be easier than you think.
If you are a renter or plan on renting, here are some options you can consider:
- Have/ get a Roommate
- Do the repairs yourself to reduce extra expenses
- find cheaper living accommodation
2. Put away Our Credit Card
Putting away your credit cards can be important when trying to control/reduce spending. However, do not get rid of your credit card entirely because you need to develop a positive payment history to build credit.
Likewise, it is more practical to put significant purchases on credit cards as long as you pay off the balance straight away to get rewards and bonuses.
When you want to keep a credit card around, it’s essential to ensure they aren’t too much of a temptation.
Here are some ways:
- Freeze your card into a block of ice. Defrosting will take a while before you can see your card, the time it takes allows you to rethink your purchasing decision.
- Remove credit card details from online shopping platforms to curb online shopping temptations.
- Switch to using cash when you go out to encourage yourself from depending on your credit card and also help you curb any spending habits.
3. Cook at Home
Preparing and eating meals at home can help you save money.
Preplanning your meals allows you to think about the amount of money you are going to spend on meals in a week. This allows you better track your spending in comparison to dining out or ordering delivery.
With accessibility to the internet, it is effortless to get an affordable and easy recipe to cook at home.
If time is limited, you can cook the food the day before and heat them up in the morning to grab and go.
In the long run, making your own meals can help you save a significant amount of money and curb unnecessary expenses.
4. Review Memberships and Subscriptions
Most people have monthly subscriptions for online streaming channels, cable TV, software, internet etc. After we set up these subscriptions, we usually don’t think about it much, while it deducts monthly payments from our accounts.
Here are some things you should consider:
- How often do I use it?
- Do I really need it?
- Can I live without it?
- Can I get a cheaper alternative?
5. Reduce Travel Expenses
When it comes to transportation, convenience and comfort will always be priority most people.
However, we often overlook the expenses for the simplicity of comfort and convenience. Instead of taking a cab or private hire car and drive, you can consider taking public transport, walking or even cycling, which are more affordable alternatives.
You may feel all these small expenses won’t make a difference, but the truth is all the small expenses can be more damaging than those large purchases in the long run.
6. Find Cheaper Alternative for Fun
Reducing spending doesn’t have to involve cutting the fun out of your life.
There are plenty of cheap or free ways to enjoy yourself or spend it with your friends.
Instead of planning activities that require spending money, you can opt for an affordable or free option.
- Simple sleepover
- Picnic with homemade food and beverage
- Read a book
- Catch a movie online
- Go thrift shopping
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About GEM COMM
We are an International Investor Relations firm (IR) based in Singapore. We specialize in Investor Relations, Public Relations, marketing, branding and messaging strategies for clients that include organizations of all sizes across Asia, Oceania and US.
GEM COMM advises and solves stakeholders’ issues, drive growth, repositions your business, improve your marketing and Public Relations (PR) or engage with investment community in your leadership or strategy story. We have a track record of helping clients reach these goals. We create and implement PR & media content, mitigate crisis and issues, establish and improve thought leadership & content marketing.
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