Cutting expenses is always a challenge, but it is also an important attitude for anyone looking to get out of the red, save money for a purchase or even start an emergency reserve.
And there is no other way: making a financial plan is essential when you want to save. At first, this task may seem very difficult, but with a few simple practices, you can organize your budget and achieve big goals. With that in mind, we’ve brought you some tips to help you cut costs and understand why it’s so important to take care of your financial health.
Why should I monitor my finances closely?
Before we bring you the tips you need to cut day-to-day expenses, it’s important to talk about your financial health.
Taking care of your money and monitoring earnings and expenses may not be one of the most interesting tasks for you, but these habits will help you to better understand your relationship with money to deal with unforeseen events. Plus, with more control over finances, it’s easier to identify what can be improved to achieve your goals.
With your financial health up to date, more than having money left over at the end of the month, you can also achieve a calmer life and organize yourself to have moments of leisure and fun without exceeding your budget. Like the idea? Identifying and cutting unnecessary day-to-day expenses is a big step to get you there.
7 tips to cut day-to-day expenses
There are many alternatives to cut expenses and get the longed for break in the budget. Below are seven tips that can help you reach that goal. Check out:
1. Analyze your current expenses
The first step to cutting expenses and achieving financial health is to make a list of all the expenses you have today. With this survey, you will be able to understand if what you spend is compatible with your income.
Do an assessment of all accounts and see what can be cut or traded/reduced in value. With small adjustments, you can get an interesting reduction in your expenses and have some money left over at the end of the month.
2. Review your subscriptions
Today, many of the services we consume are subscription-based: streaming music and movies, apps and games are just a few examples. Almost imperceptibly, these expenses end up generating a significant cost. Have you ever stopped to assess whether you really use and need all the subscription services you’ve purchased?
Make a list of all expenses, however small, and assess which ones can be cut as soon as possible.
3. Reduce delivery consumption
Delivery costs increased considerably with the onset of the pandemic. In fact, the service became essential at a time when everyone needed to stay at home to stop the spread of coronavirus contamination.
However, even with the restrictions eased, many consumers are still in the habit of ordering meals more often than they could. Have you ever stopped to wonder if this habit is hurting your budget?
Take a tour of the delivery apps and note the dates and values of the last orders placed. If you find yourself spending more than you should on this type of expense, a good tip is to establish a monthly ordering frequency: choose to order meals at home once or twice a month, for example, and make an effort not to stray from that goal.
4. Keep an eye on mobile apps
Like delivery apps, hitchhikers like Uber and 99 can also consume an important part of the budget if not well controlled. The previous tip can also be applied here: check your running history in these apps and see if you are spending too much with them.
To have greater control over this type of expense, an interesting tip is to unsubscribe your cards from the apps and insert a monthly credit charge in them. That way, when the value is close to end, you will already know that you should reduce consumption in order not to go over budget.
how to cut expenses
5. Check your wardrobe
Unfortunately, impulse purchases are already part of the routine of many consumers, and the temptation to bring home new clothes can be one of the biggest villains of the budget.
From time to time, when you feel the need to buy new items, take a good look at your wardrobe to see if you really need it.
Also, you can take this moment to see what you no longer use and that can be sold or given away. Some detachment websites and apps allow users to advertise their used items and charge a small fee for the amounts sold. How about looking for some options?
6. Pay your bills on time
The tip seems simple, but paying the bills on time is also an attitude that helps to cut expenses. That way, you avoid paying interest and penalties or even spending the amount on something else.
An interesting tip is to trigger reminders on your cell phone with the due dates of your bills. Entering them into an automatic debit can also help keep payments on time.
And remember: in addition to maintaining your financial health, paying your bills on time is one of the habits that contribute to increasing your Serasa Score 2.0.
7. Do you pay for the gym? Assess the need for this service
The gym membership is a classic type of invisible expense that eats away at your budget without you realizing it. Of course, if you use this service on a day-to-day basis, the payment is worth it, but if you are one of those who don’t go to the gym very often, it’s worth considering the possibility of exercising at home or even outdoors and canceling the signature.
In addition, you can count on the support of videos on the Internet and free applications that help you to practice different types of physical activities.
Did you like the tips? We hope they can help you organize your budget, cut spending and get a little extra cash at the end of the month. Access Serasa Ensina to check out more financial education content.