If you would like to cut down on your living costs one of the best tools is a budget tracker. Many banks will offer you the option of tracking your spending and sending you a monthly spending report. You can also do this on your own by going through your account activity. There are also mobile and web apps that will help show you where you are spending the majority of your money.
Now, cutting down on your spending may not mean drastically changing your lifestyle. If you track your expenses you may begin to notice how much little things add up. For example, if you buy coffee every morning then you are spending somewhere between $2 and $5 every day. Over the course of a month that adds up to $60-$150. Therefore, cutting back on your bill may simply mean investing in a coffee maker or giving up coffee altogether (which would also have a health benefit).
Once you have looked through your budget and helped eliminate small expenses, the next thing to do is to eliminate the small things that help add to your big expenses. For example, you may start looking into ways to save on your energy bill. Many energy companies will offer you guides on how to cut back on your energy consumption, especially in peak usage seasons, but here are some general ideas.
1) Take shorter showers. 90% of your energy bill goes to heating water, so find ways to avoid using hot water which brings us to tip
2) Hand wash your laundry and/or wash with cold water. Don’t let it pile up. Hand wash the t-shirts and other small items that you wear every day. This will help you have access to them faster and will also mean you don’t need as many clothes.
3) Reconfigure your dishwasher to use less hot water.
4) Unplug your devices. Devices that are left plugged in suck energy and add to your bill. If you don’t want to bother with unplugging your devices all the time then invest in a few AC protectors that will guard against vampire power usage.
5) Turn off your lights and switch out your bulbs with energy-saving bulbs.
6) Turn off your TV, your computer, your radio, etc. In general, just turn things off.
Saving on your energy bill will definitely cut down on your expenses, and the savings will add up.
Lastly, look at your other major expense, food. To save on food costs don’t eat out. Buy natural foods. They are healthier and you also get more meals for the same price than if you were to buy processed foods. Junk snacks are particularly unhealthy and costly. Avoid anything with corn syrup or hydrogenated oils in them. Not only are those foods poison, they are also expensive. A healthier diet will also make you feel better, and cut back on your health bills over the course of your lifetime.
With this simple guide to thrifty living you will save a lot and money saved is money earned.