9 Simple Ways to Trim Monthly Expenses
Right now, with taxes just around the corner, and high prices on everything from groceries and gas to spring break vacations (or even “staycations”), it’s never been more important to stay on top of your finances. Checking in on your budget and adjusting your spending habits as needed are important ways to keep up to date on your finances, as well as see where you can trim expenses each month.
Not all expenses are necessary like rent/ mortgage payments and groceries are. Some expenses are self-imposed and unnecessary. Though they may be hard to part with, we think that by cutting these expenses from your budget, or at least trimming them down, you will be able to save more right now and therefore invest more into your future.
1. Review your monthly subscriptions. Are you using them often enough to make them worth paying for each month? Ask yourself, “Is it worth what I am paying?” and “Can I live without it?”. If you pay for several TV, movie or music streaming services, consider what value each one really brings to you and whether you need every one, or could live with just one or maybe two. If you simply cannot part with a subscription, maybe you can find a way to share the service and split the cost with family members or friends.
2. Review your cell phone service. Cell phone options are always changing, and even if you have been loyal to your cell company for years, you could be greatly overpaying for their services. Especially if you have been a customer of one company for a long time, look into what deals or upgrades they offer to long term customers. If your company does not have a system that rewards long term, loyal clientele, then it may just be time to switch.
3. Check for coupons, rebates and discounts before making purchases. Before making online purchases or going shopping, always check for any coupons, rebates or discounts. It pays off to be thrifty, especially when making large purchases. Be sure to shop around before making a purchase decision!
4. Brew your own coffee. Have you ever calculated what you are spending on coffee each month? If a plain latte at Starbucks is up to $5.50 right now, consider how much you spend every month - and every year - just on going to coffee shops. We know it’s tempting, but you could literally save hundreds just by making your own coffee and tea drinks at home.
5. Cook in bulk and freeze leftovers. Cooking in bulk will help you avoid the temptation to grab something quick and expensive. Buying in bulk is also a great way to get a better overall price. Sam’s Club is a great, cost-effective option in Grand Junction (if you have a big enough freezer)!
6. Drink more water. It sounds simple, but skipping the sodas, coffees and other fancy drinks will save you money, and help you feel better too!
7. Borrowing instead of buying. If you are completing a one-time project or hosting a one-time event, it will be easier on the budget to borrow some of the things you need vs. buying them. Look up rentals near you online for almost anything you need, and there is a good chance you’ll find it.
8. Review your Auto Insurance. Take the time to review your auto insurance often. Prices and deals are always changing, and you could potentially save some money by shopping around, especially before making an initial purchase decision if you are a first-time car owner.
9. Last but certainly not least is to use your credit card wisely. Be careful not to overspend (try to stay within 30% of your limit); be sure to pay off your credit card in full as soon as possible; and never use your credit card to pay off debt, if at all possible. We talk more about the cycle of using debt to pay off debt and the resulting negative impacts on your credit score in our YouTube video “All Things Credit” on our channel coloramofcu. Coloramo also offers some great credit card options. You can check them out here: https://www.coloramo.org/lending-solutions.