Every savings is certainly worth it. Keep reading and check out 6 tips to identify and eliminate unnecessary expenses:
1. Make a list of your expenses
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Before eliminating unnecessary expense , you need to identify it. A good homework assignment to help you assess your financial health is to catalog your expenses for at least one month.
That way, you’ll have tangible data to analyze.
It is important not to miss anything, from the simplest expenses to the monthly ones.
Expenses that seem insignificant may surprise you at the end of the information survey. With expenses cataloged in hand, it is easier to identify and decide what needs to be cut or reduced to generate savings.
To catalog your expenses, you have a multitude of options, such as mobile applications, an Excel spreadsheet or even the good old pen and paper. The important thing is to choose the one that best suits your needs.
2. Identify what is a priority and what is an unnecessary expense
With all expenses listed, it is very easy to identify what is really necessary to pay and what is superfluous.
Priority should be given to those expenses that you cannot live without. Usually, they are expenses with housing, health, food, transportation, education and the like.
Still looking at your expense list, you’ll notice other expenses. Generally, these are the unnecessary ones: the ones you can live without, but which bring you some personal satisfaction.
A classic example is pay-TV. If you’re paying for a TV subscription with hundreds of channels, but only watch two or three, you could be wasting money. Or that day of the week when your whole family gets together for pizza. Instead of doing this every week, you can cut it down to once or twice a month.
3. Renegotiate your debts
Using the overdraft or revolving credit card limits is never a good way out. And it can become an unnecessary expense due to interest.
The interest charged on these two products is among the highest on the market. If this is the case, you can talk to your account manager and find a credit modality with lower interest rates to settle the outstanding balance of these products.
In that case, a good option may be payroll loans. The installments charged for this modality are deducted directly from the payroll, reducing the risk for banks – which makes interest rates lower and more accessible.
By following these tips, you’ll save on interest and get a break in your budget, as you can pay lower installments.
4. Have a plan for special dates
One of the biggest enemies of those who want to save money is last minute purchases.
You know that birthday present you forgot to buy and ended up having to pack at the last minute? This is one of the villains of cost reduction.
A good tactic to avoid spending more than you can is to create a calendar with these important dates. This way, you can define what will be purchased and what will be the budget available for the purchase.
5. Pay bills on time
It may seem like an obvious tip, but paying bills on time avoids fines and interest being charged. Pay attention to this point and avoid the Brazilian maxim, which leaves everything for the last minute.
With organization and care, you can pay bills without delay and avoid these expenses.
6. Adopt our tips to cut unnecessary expenses
To help reduce or cut unnecessary expenses, we separate some practical tips. Check out:
Before decreasing the empty space in your wardrobe, analyze whether you or someone in your family really needs that piece.
Pay special attention to offers and promotions! Most of the time, they make us take more parts than we need, especially when they are advertised X times without interest.
Remember that paying your purchases in installments on your card will compromise your budget for a long time.
cafes and snacks
Here is another big villain of family budgets. That harmless little coffee you drink at the bakery every day is not so harmless when you add it to that savory snack you bought at the snack bar a little later, and you see the amount spent in the month on those snacks.
Avoid eating out of habit. Do you really need that little cup of coffee before you get to the office? You can drink fresh coffee before leaving home.
Spending on meals in restaurants, bars, bakeries and the like is getting more and more expensive, so reversing the habit of eating out will positively impact your budget.
Cell phones and phone plans
We don’t need to say that you don’t need to change your cell phone with each launch, do we? Be careful with those promotions that offer the cell phone of the moment for an attractive price if, for that, you are obliged to contract the operator’s plan — which, normally, has a grace period of at least two years.
Reviewing the phone plans for your device and your family’s devices can also be an alternative to lower your monthly expenses.
It is worth reflecting on whether you really need that whole data package, as you may spend most of your day in an environment with Wi-Fi — not to mention that most establishments offer this type of connection.
It’s worth paying attention to household bills, too. Although most are fundamental to maintaining your routine at home, you can reduce them.
Observing shower time to save on the energy bill, previously creating a shopping list at the supermarket — avoiding buying products that are not necessary — and rethinking the internet and cable TV plan are some actions that can help reduce house bills.
Observing your expenses and defining what is a priority, you can reduce your expenses and not compromise your family’s financial budget , ensuring that you reach that dreamy goal that makes this kind of sacrifice worthwhile.
With the proper adjustments, it is possible to save money by cutting unnecessary expenses.