5 Ways to Cut Spending and Start Saving

Are you living from paycheck to paycheck? Do you worry about how you would manage if you were facing some type of emergency? Gaining control of your finances so that you are actually able to meet all your monthly expenses and start saving money may seem like an impossible task, but there are many things you can do to cut back on spending.

1. Find out where your money is really going.
Most people fritter away a great deal of money on small things; candy, gum, cappuccinos, bottled water, energy bars, magazines and the list goes on. But if you pay attention to the little things, you’ll discover they really add up quickly. To get a good idea of how much money you are spending, make a commitment to track your spending for at least two weeks, preferably a whole month. During that time get a receipt for every single purchase you make, right down to each and every pack of gum or chocolate bar you buy. At the end of the time period, add it all up. Once you know how much you are spending on the small stuff, you can determine whether some or all of that spending can be eliminated.

2. Cut way back on impulse purchases and casual spending.
Many of the small items you buy are impulsive purchases. With a little planning you can eliminate that type of spending without sacrificing the things you really need or want. If you can’t do without your energy bars, buy them in bulk rather than paying high prices at the corner shop. If you drink bottled water, stop. Studies have shown that bottled water is no safer than tap water and it’s certainly more expensive. If you don’t like the taste of tap water, consider filtering your own water. If you have a favorite magazine that you always read cover to cover, then get an annual subscription instead of picking it up when you are doing your grocery shopping. You can usually save thirty to fifty percent off the cover price of magazines with a subscription.

3. Re-evaluate all your regular monthly expenses.
If you are paying for something you don’t actually need or use, cancel it. Also take a close look at things like insurance, bank fees, cable or satellite television, cellular, telephone, and internet services, as well as credit card interest rates. Often you can save money by renegotiating contracts, switching service providers, bundling services or transferring credit card balances to cards with lower interest rates.

4. Create a budget and stick to it.
Operating without a budget is like embarking on a journey with no idea of your destination. Very few people manage to save money without clear financial goals and a specific plan on how they are going to achieve those goals.

5. Never pay full retail price for anything.
Getting a good deal on almost anything has never been easier. It may take a little extra effort on your part, but shopping around for the best prices can save you a great deal of money. You can find price comparison sites online, that will search for the best deals available. Often local retailers are willing to match lower prices that you have found, providing you ask. Cutting spending and saving money requires discipline and perseverance. Take it one step at a time but think long term. It takes time to establish new money habits, but once you do, you’ll never look back.




My name is Muzammil Bashir. I’m working with the Senior Editor of Net Effekt –specialising in white label email marketing white label email marketing.