4 Practical Approaches to Slash Your Household Spending
Life is expensive. There’s no way around it. A fluctuating economy and inflation have left many to rethink how they spend their money. While you can’t eliminate all of your expenses, there are ways to reduce just how much you’re forking over each month. Here are a few practical ways to slash your household spending.
1. Review Your Monthly Bills
It’s important to regularly review your monthly bills to ensure you’re not paying for services or coverage you don’t need. Overpaying for unnecessary expenses can add up quickly, and that’s not what you want in this economy. Before committing to any monthly service, take some time to research your options.
If you’re paying for internet service, compare different providers to see if you can get a better deal. Many companies offer promotions or lower rates for new customers, and switching providers could save you a significant amount each month. The same goes for cell phone plans — review your current usage and consider whether you’re paying for more data or features than you actually use. Switching to a plan that better matches your needs or even negotiating with your current provider can lower your monthly bill.
The same is true for insurance. In some cases, you may only require basic coverage, and making a switch can greatly slash monthly costs. Shopping around for the best deals ensures you’re only paying for what you actually need. Fortunately, getting an updated quote for home insurance is free and easy to do online. Bundling is also a great option to boost savings. Many companies offer discounts when you combine multiple policies or services under one provider, such as bundling home and auto insurance together.
2. Reduce Grocery Expenses
According to the Census Bureau’s Household Pulse Survey, the average American household spends approximately $1,000 every month on groceries. Of course, this number varies widely based on where you live and how many mouths you are feeding. While every household needs to purchase food regularly, there are ways to save before you go to the checkout line.
If you have the space to store large quantities of items, then buying items you use regularly in bulk may be a great option. In addition to warehouse clubs such as Sam’s Club and Costco, you can purchase items in bulk online either directly from the brand or through a third party such as Amazon. And even if you live in a smaller apartment or condo, then see if there is a family member or friend that you can split the goods between. Everyone needs toilet paper, so buying it in bulk and splitting it with a neighbor could help you both save.
When shopping for produce, try to buy fruits and vegetables that are in season. These tend to be lower in price than items that need to be shipped from exotic places. Look for any store promotions or discounts and sign up for a grocery loyalty rewards card for extra savings. For meat and seafood, look to see what is on sale and stock up. Buying chicken breasts and thighs when they are discounted and freezing them for later can be a great money-saving strategy.
3. Evaluate Your Subscriptions
The cost of being entertained is expensive. From monthly streaming services to workout app fees to music and audio apps, the number of subscriptions can quickly add up. Not to mention, companies like Netflix are cracking down on password sharing, making it harder to share logins amongst friends. All that said, recent research shows that more than half of consumers are paying for subscriptions that they don’t currently use.
Keeping up with what you are paying for regularly can be time-consuming. Fortunately, several apps will help manage and monitor your recurring subscriptions. Some banks and credit cards, such as Chase Stored Cards and Eno Capital One Assistant, will help with this too. These apps will ping you before a payment is due, reminding you to cancel before a due date.
You can also keep track of your subscriptions by adding reminders in your phone’s calendar. This can be especially helpful for the ones you’re just trying out for free. Knowing that you’ll be billed at the end of the month if you don’t terminate the contract, you can cancel before your credit card is charged.
4. Be Vacation Smart
Vacation envy is a real thing. With Instagram and TikTok, you may be seeing just about everyone going to new foreign countries for days on end. They may be sharing just how much fun they are having and all the extravagant dinners they’re attending. But, remember, what they aren’t showing is their dwindling bank account!
Everyone deserves a vacation, but that doesn’t mean you need to spend so much on it. Instead of flying, consider taking a road trip. The journey can be just as exciting as the destination itself. Also, check the prices of staying at a luxury hotel versus staying at a hosted home from Airbnb or Vrbo. Having the option to make breakfast and an occasional dinner or two during vacation can offset some of the costs too.
Once you’ve decided where to go, consider going during the off-season. Yes, a beach vacation is ideal in the summertime but it’s often overcrowded and more expensive than it is during the early fall or spring. And before you book anything, see if you have enough points on your travel credit cards. These can shave some dollars off an airfare or give you access to a room upgrade.
Takeaways
Trimming your household spending may take some work, but the payoff can be significant. Start with some big-ticket items, such as insurance policies, before looking at other costly areas. With the right mindset, you’ll go into every purchase thinking of ways to save.
