7 Ways to Cut Expenses Now - How To Save Money Now

November 12th, 2022

6 min read

You know that feeling when your bank statement comes and you see all those red numbers? That sinking feeling in your stomach is the moment when you realise you’re short on cash. Again. If you find yourself in this situation often, it means that you need to find ways to cut expenses now and stay within a smaller budget. The key is to identify areas where you can reduce spending without impacting your lifestyle. Here are 15 ways to cut expenses now and save money today so that you don’t have to deal with this unfortunate reality again anytime soon.

Change your mindset

The first thing you need to do to cut your spending is to change your mindset about money. Instead of always thinking about how much you have (or don’t have), think about how much you can make. Be creative, and look for opportunities to earn more. For example, you could start blogging, deliver groceries, rent out a room in your house, or do freelance work, just to name a few. Also, think about where your money goes each month and why. Once you know where your cash is going, you can start finding ways to cut expenses now and save money without depriving yourself.

Review your spending habits

Spending less than you earn is the simplest way to get out of debt and build savings. It requires diligence, though, and commitment to change your habits. Start by making a list of all your recurring expenses. Include everything from utility bills to your car insurance, groceries, internet service, and more. Then, cross-reference the list against your bank statement from last month. Now you have a better idea of where most of your money is going. Next, categorise each expense based on whether it’s necessary or not. This will help you determine where you can start cutting expenses now and save money. Some expenses are necessary because they provide utility, while others are unnecessary because they don’t. For example, your car payment is a necessary expense because it’s a commitment you made when you drove off the lot in your new car. On the other hand, that monthly subscription to a magazine or online service you don’t even read anymore is an unnecessary expense.

Cancel subscriptions you don’t use

This is one of the easiest ways to cut expenses now and save money. But you need to be ruthless about it. Take a close look at every single subscription on your credit card statement. If you don’t use it and don’t read it, cancel it. Some of the subscriptions you find may be on autopilot, meaning you don’t even remember signing up for them, but your credit card does. Others might be something you agreed to in order to get a discount, then forgot about it entirely. Whatever the case may be, you have no obligation to keep these subscriptions. Cancel them, and you’ll save money.

Slash the food budget

Eating out is one of the biggest expenses people have. It’s also an easy one to cut, and by doing so you can save money on your budget. Start by identifying which restaurants you visit the most, and then make a plan of how to visit them less frequently. Instead of eating out, try hosting friends and family at your place. Or, invite them over for a potluck, where everyone brings a dish to share. If you’re really committed to eating in, you can even buy a second-hand microwave or, better yet, a convection oven. Another way to slash your food budget is to shop smarter. Buy in bulk and make large portions so you can freeze the leftovers. You can also grow some of your own vegetables, which are cheaper and healthier than the veggies you buy at the store.

Dining out – go takeaway instead

If you’re a regular at your neighbourhood restaurant and plan on sticking to your new budget, you have to learn to become a takeaway fan. This is also a good way to avoid overeating, as restaurant portions are much larger than what you’d normally eat at home. This way, you can still enjoy eating out, but you have to resist the temptation to order a drink and starters. Simply go for the best and the healthiest takeaway meal you can find, and stick to water when you dine out. If you’re worried about the quality of the takeaway you get, remember that most restaurants are required to post a health rating. You should be able to find it posted outside the restaurant and on their website or on the Food Standards Agency website.

Repairs and maintenance

Some things, like your car and roof, need repairs and maintenance no matter what. This is a necessary expense, but it can end up eating up a big chunk of your budget if you don’t keep track of it. One way to cut expenses now and save money is to get a maintenance contract for important items. For example, you can get a contract for your car’s oil changes and tune-ups that come with a fixed price and a guaranteed completion date. You can also hire a trusted roofing company for the maintenance and repairs of your roof. This way, you can avoid paying for repairs out of your own pocket. Another way to cut expenses now and save money is to do basic repairs yourself. You can learn how to change your car’s oil, replace your air filter, and even repair small holes in your roof. This way, you can avoid paying mechanic fees and roofing contractor fees and put the money you save towards your savings.

Get rid of things you don’t need and won’t use

You may have heard that you should declutter your life regularly, but what you may not know is that you should declutter your home and finances, too. Clearing out your home of things you don’t use and don’t need is a great way to cut expenses now and save money. You’re not only reducing your monthly expenses, but you’re also decluttering your home, which can make you feel better mentally. You can also declutter your finances by getting rid of any debt you owe. You can do this by making extra payments on your loans (if possible), investing in a savings account, or by finding a debt consolidation company that can help you get rid of your high-interest debt. Getting rid of your debt will make you feel better about your finances and improve your credit score, too.

Conclusion

Cutting expenses now and saving money will enable you to get out of debt, build savings, and start investing. Investing in the stock market is a great way to grow your money. However, before you start investing, you need to get your finances in order by cutting your expenses now and saving money. This way, you’ll be more prepared for any bumps in the road along the way.

Making use of the available financial apps on the market can also help in your financial journey. Pay on demand apps are on the rise, and Wagetap is one of the leading salary advance apps in Australia. You can simply download the app and sign up for a free account to get early access to your pay now.