When money is tight, building a budget can be difficult. At some point, trimming discretionary spending can only help so much. When your required bills and everyday expenses like food and gas outpace your earnings, you’ll need to either find another source of income or get creative about savings.
The good news is, there are strategies you can implement to reduce even your necessary expenses. In some cases, this may involve an upfront investment to reduce long-term spending, so consider your available funds carefully when following these tips.
Living Paycheck to Paycheck Is a Reality for Many Americans
According to a May 2022 LendingClub survey, around 64% of Americans are living paycheck to paycheck. That means that after the bills are paid, there’s no money left over for saving or fun spending.
[Related:Tips to Avoid Living Paycheck to Paycheck]
High interest rates and a turbulent job market only add to this stress. And while finding alternative income sources is an option for some, it isn’t for everyone. If you can’t bring in extra money, you’ll have to find ways to survive on your current income.
Ways to Save on Everyday Expenses
You’ve divided your budget into wants and needs and reduced discretionary spending, but money is still tight. What’s next? Experts suggest you try these four strategies to save on your everyday expenses.
1. Negotiate Utility Bills
You can’t just decide to stop paying your internet, cable or electricity bill, but that doesn’t mean you are stuck paying prices outside your budget.
“Most companies know that it’s cheaper to keep a current customer than it is to acquire a new one. With that said, take advantage of your service provider’s desire to keep you,” says Fo Alexander, certified financial education instructor and founder of the website Mama & Money.
“Give them a call and negotiate a lower rate for services like internet, cell phone services and more. Typically, they will be willing to work with you for a lower rate to keep you as a customer,” she adds.
[Related:How to Estimate Utility Costs]
2. Address High Credit Card Debt
Credit card debt is easy to accrue and hard to get out of. With interest rates so high, even slowly chipping away at your balance can take a big toll on your monthly spending.
“If you’re carrying a revolving balance, interest fees will eat away at your monthly budget. Paying down debt should be a priority but interest can make that hard to do,” says money-saving expert Andrea Woroch.
She recommends looking into a balance transfer credit card as a tool for reducing interest while you pay down your balance.
If you don’t qualify for a balance transfer card, you still might be able to negotiate your interest rate, Woroch says. Many credit card holders are able to reduce their interest rates just by calling their issuers and requesting a decrease.
3. Invest in Reusable Items
Groceries and household purchases are certainly a necessary expense, but there are options for trimming your spending in these categories. For instance, investing in reusable items can help you save over time, Alexander says.
[Related:These Are the 10 Cheapest Grocery Stores in the U.S.]
“The cost of disposable goods can add up. So instead of literally throwing money in the trash, shop smarter and purchase reusable items. This includes replacing paper towels with cloth napkins, styrofoam plates with plastic or ceramic and paper cups with reusable ones,” she says.
Similarly, making the switch from name-brand products to store brand can add up over time. Even a few dollars here and there can help you redirect money you’re spending on groceries or other household items to other bills.
4. Opt to Eat and Work Out at Home
“It’s not a secret that cooking meals from scratch can be significantly cheaper than buying pre-made or takeout meals. When you cook at home, you can buy ingredients in bulk and save money on a per-serving basis.
In addition to being cheaper, cooking meals at home can also be healthier than buying pre-made or takeout meals and help reduce food waste,” says Baruch Silvermann, founder of the financial website The Smart Investor.
You don’t have to completely eliminate eating out — even just reducing how often you do can help you save.
The same goes for exercise. According to Silvermann, many people overspend on gym memberships, especially if they’re too busy to go on a regular basis. Opting for a shorter contract or class-based program and swapping the occasional workout for exercise at home can cut down costs.
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How to Save on Everyday Expenses originally appeared on usnews.com
Update 09/12/24: This story was published at an earlier date and has been updated with new information.
