Life can be expensive, and this can create a great deal of stress for you and your family. However, finding a way to live simply can help you get rid of your expenses and make you richer in both life and finances. Cutting back will depend on how simple you want to live, so if you want to make smaller cutbacks or go to the extreme, the following are four ways you can start to live simply and save more money for the times you need it most.
Eliminate Unnecessary Utilities/Expenses
You have everyday living expenses that can create a financial burden for you and your family. The best way to live simply is to eliminate the unnecessary expenses. For instance, can you and your family go without cable? If so, cancel your subscription. These utilities often cost about $100 a month, and you can easily get Netflix for $11 a month, which is a huge savings. In addition to cable, see if there are other expenses you have that you can eliminate. For instance, do you have a gym membership you don’t use? A home phone you don’t use? A security system you don’t use? If so, then you should stop paying for these expenses and put that money into a savings account.
In addition to unused utilities, you should also look at other expenses you may have that you can live without. For instance, do you have a high car payment? If so, can you sell your car fast and use that money for other modes of transportation, such as public transportation or a car with a lower monthly payment? This allows you to cut some of your expenses.
Aside from cutting back on your everyday expenses, you should also consider downgrading. For instance, if you live in a very large house and have a high mortgage payment, moving into something smaller with a more manageable mortgage allows you to save more money. This sense of downgrading can be done with secondary or vacation homes too. It can also be done with vehicles. If you have a large and expensive car, you can easily trade that in for something that’s less expensive and allows you to put that extra payment into a savings account.
Life often comes with multiple payments that include high interest rates, and this can cause you to dish out a significant amount of money on unnecessary fees. However, by consolidating your debts into a personal loan with one payment and a lower interest rate, you can find yourself saving quite a decent amount of money. Talk to a lender today to see what your interest rates would be with a personal loan, and then do some calculations to see what that loan could save you on interest payments by consolidating your other debt into it. You just might find this is a great way to live simply and save money.
Change Shopping Habits
If you have an eye for fashion, you may find your fashion expenses are too high. However, you can live simply by cutting back on how much money you spend on clothing and other fashion accessories. For instance, instead of constantly buying new, see how you can repurpose the items you haven’t worn in a while. Maybe something has come back into style, or maybe you can repurpose a sweater into a nice scarf. If you have a pair of pants you don’t wear often, maybe you can repurpose them into a nice pair of capris or shorts. This allows you to save money on clothing.
In addition to just repurposing items you currently have, you should consider downgrading on how you shop. For instance, instead of paying full price for items from your favorite stores, you should look for others ways to purchase clothes. Consider shopping at thrift stores in order to find the best deals on clothing. You should also look for places where you can trade items for other items. This allows you to get new items without spending any money at all.
Downgrading and finding ways to change the way you live allows you to keep more money for yourself and stop wasting it on other items. Again, your decision to downgrade will depend on just how much you want to save and how you want to live simply, but even making minor changes can ensure you receive the financial freedom to reduce your stresses.