Interested in the subject? In this post, we talk about the importance of cutting unnecessary expenses and we also present 6 tips to help you change habits and save. Let’s check it out! 😉
The Importance of Cutting Unnecessary Spending
Nothing better than paying all the bills straight at the end of the month, right? This helps us even sleep better and, of course, stay worry-free. Cutting unnecessary expenses is the way out for those who want to keep up with their bills and achieve financial health for themselves and for the whole family.
Furthermore, when we make an effort to save money, we are able to achieve goals and make dreams come true, such as buying a Smart TV or taking a trip we always wanted to take.
You may have to change a few things and make a waiver or another, but in the end, facing reality and rethinking the waste of your money is the best way out, especially if you want to achieve your goals in the future.
6 tips to cut unnecessary expenses
Here are some tips to help you analyze expenses and better manage your money. Check it out now!
1. Identify fixed and variable expenses
To start cutting unnecessary expenses, it’s good to keep an eye on fixed and variable expenses. We explain better what they are next:
- fixed expenses: those that occur practically every month and have a cost that does not change, such as property tax, car insurance or cable TV subscription;
- variable expenses: those that suffer variation in values according to their consumption, such as electricity, water and gas bills.
This attitude seems simple, but it is a good way to better understand your financial reality, in addition to better understanding the amount needed to keep all your accounts up to date. It can start simply. Get a pen and paper and record the amount of each of your fixed expenses. Then set an average value for variable costs.
While making these notes, it is already possible to analyze which expenses need to be reduced or even cut from your budget. We suggest adopting this habit of writing down fixed and variable values every month. After all, this is a good option to closely assess your budget and the whole family.
2. Bet on debt renegotiation
Debt renegotiation is an important step to cut unnecessary expenses. Here, initially, it is important to understand how much you owe at the moment so that you can negotiate the values in the best way. Oh, be sure to consider interest, charges and fees.
Then take a look at how much you can pay per month to pay off the debt in question, always considering your fixed and variable expenses. This assessment is essential for you to avoid making difficult financial commitments.
After that, it’s time to get in touch with the financial institution and try to negotiate the payment of the outstanding amounts. Sometimes, you can negotiate discounts on cash payments, for example, or manage to split amounts with fair interest and instalments that fit in your pocket.
3. Use apps
Technology can help you cut unnecessary expenses, you know? Some apps promise to do efficient financial management with just a few clicks. Just enter your data, sync your bank accounts and you’re done. The process is safe and can help you save time.
Here are three programs to download without fear. All are available for Android and iOS. Look that:
- Guiabolso ;
- Organizer ;
- Easy Budget.
4. Avoid delivery, prefer the kitchen
Delivery is super practical, isn’t it? Just a call or a few clicks on an app to receive in the comfort of our home any type of food we want. It’s good, often quick and breaks a damned branch, especially on those days when we feel the inspiration to cook fading.
But the bad news is that all this convenience may not be beneficial at the end of the month, especially if you are in the habit of always asking. If we put the expenses down on paper, it is usually much cheaper to buy the ingredients and cook the dish you want to eat at home. Also, cooking, when done with the family, can become a super special moment. 🍳
This is not to say that you should never use the service. In fact, the idea is to plan to order delivery, always considering your expenses so as not to compromise at the end of the month. Maybe it’s better to order once every 15 days than every week, for example.
5. Make a shopping list
A nice tip to cut unnecessary expenses and avoid buying on impulse is to make a shopping list. So, before heading to the grocery store, take a look in the fridge and check the groceries in the pantry to know exactly what to get. Then, it is necessary to follow the list to the letter so as not to fall into temptation and take home more than you should.
6. Be careful with a credit card and overdraft
Last but not least: be careful with your credit card and an overdraft. Sometimes, we end up using too much because we have a false feeling that we have a little extra money at the end of the month.
Paying your credit card bill in instalments, for example, is not advisable, as interest rates are high and can compromise your budget. Even worse is paying only the minimum. The best option is to pay the full amount on the card every time. And if you’re going to use an overdraft, it’s a good idea to cover the amount in your account as soon as possible.