8 NOT-SO-PAINFUL WAYS TO CUT YOUR MONTHLY EXPENSES

Author: Patrick Blair

Dishonest money dwindles away,
    but whoever gathers money little by little makes it grow.
- Proverbs 13:11 (NIV)

Who likes extreme discipline?  Certainly not me and I’m guessing you don’t either.  Let’s leave that to Buddhist monks and navy Seals.  I’m proposing cost-cutting ideas that aren’t too painful and don’t take too much effort.  I’m not even suggesting you do them all.  Even if you do just a few of them, it’ll make a big difference over time.

When it comes to spending money, most of us (including me) are terribly undisciplined.  You’re probably reading this because you know you need to cut your spending, so I give you credit for making the effort.  Now, if you’ll make a little more of an effort and put some of these ideas into practice, you’ll realize that they aren’t so bad.  Who knows, you might even like it!

In my book Faith & Finances, I explain why wealth is grown "little by little."  Most people never come into large chunks of money; they only have the opportunity to save the little they have left from their pay.  Even when people do get large chunks, they tend not to save it.  But when you consistently save a little at a time, it can grow substantially.

Here are 8 not-so-painful ways to cut your monthly expenses:

1) Cut the cord.  Even if you are a diehard sports fan, there are many internet-based options out there.  Do you really need all those cable or satellite channels?

2) Don’t eat out so much.  This might be the single best way to cut your expenses.  Sure, a meal out here or there might not break the bank, but it can sure add up.  If you eat out 10 times a week and those meals cost, on average, $7 more than eating at home per meal, then you are spending an extra $300 per month.  If you cut 10 meals out down to 5 per week, you could save $150 per month.  Your health and your bank account will thank you.

3) Keep your mobile device longer.  Notice I’m not saying that you shouldn’t have a mobile smart phone, because it isn’t realistic these days.  But do you really need to have the latest and greatest device the moment it comes out?  Keep your existing device longer and you’ll save each month.  If you are paying monthly, you’ll have to keep your device after you’re done paying it off in order to save.

4) Avoid car payments.  We can get comfortable with car payments, but isn’t it much better not to have one?  Generally speaking, repairing older cars is much cheaper than making “new car” payments.  Think of all the money you’ll save each month!  If you’re in the market for a car, consider buying used.

5) Find lower cost food shopping alternatives.  Have you ever walked out of the grocery store with two little bags and wondered how you spent so much?  Even though buying food at the grocery store is better than eating out, you can still get fleeced.  Consider buying store brands, sale items, and lower cost substitutes.  Bye bye filet mignon!  Hello sirloin steak!

6) Stop buying so much clothing and footwear.  Most of us have more clothes and shoes than we need.  There’s nothing wrong with having quality clothing, but let’s avoid all the waste.  If you really want to save, go shopping at thrift stores, where all those extra clothes are sent!

7) Install LED bulbs.  The cost of LED bulbs has come down tremendously in the last few years.  They operate at a fraction of the cost of incandescent bulbs and last for a very long time.  If you’re a renter and you have incandescent bulbs, just keep the landlord’s bulbs in a box and use LEDs.

8) Shop for insurance.  Cue the GEICO or Progressive commercials!  I’m not sure if they are the best deals, but they’ve certainly given us the idea that insurance shopping is easy.  If you have homeowner’s insurance, consider bundling it with your auto policy for additional savings.

There are many other ways to cut your expenses discussed in my book Faith and Finances. Please see www.faith-finances.com for more blog articles.