Another way to reduce expenses is to write down all of your miscellaneous purchases for a month. Are you spending $100 a month at the 7-11 or for Latte's? Look through your bank statements and verify all of your monthly debited expenses.
Sometimes, some of the easiest ways to cut spending can be found right in your own home.
Focus on utilities- buying fluorescent bulbs, lowering the temp on your water heater, cutting back on the clothes dryer and using your microwave whenever possible are just a few of the ways you can use to cut spending at home.
If you are holding several credit card balances, it is important to start paying off the cards that have the highest interest rate on the account. If you target those cards first and eliminate that debt, you can have a better cash-flow situation.
One big way to cut spending is to reduce your cell phone plan. Many people spend over $100 dollars a month just to talk on a phone. If you take the smallest plan and use the phone for emergencies and necessary calls you can easily save a good amount of money every month.
Another possible way to cut spending is to bargain shop. Shop for groceries in bulk instead of on a weekly or daily basis, this can literally save you thousands of dollars over the course of the year. Use coupons when you do your grocery shopping and pay attention to special double or triple coupon days at your local grocery store. Again, over the course of a year, this could result in hundreds and possibly even $1,000+ in savings. Shop with cash, do not use credit and fall into the credit card trap. All of these savings that you just realized by utilizing the 2 tips mentioned above can be completely neutralized or eliminated by using credit to make your purchases which could result in high interest charges and possible other fees.
Homeowners can also cut expenses by winterizing their homes. During the winter months, note any cold draft from any area in the house, especially near doors, windows, and garden pumping pipes. Properly insulating the house with pads and filling in cracks on walls can potentially save hundreds of dollars in heating bills every year.
Another way to cut spending is to look at the rest of your house hold expenses. Many people may think that having Cable or Satelite TV is a necessety, however that is one luxury expense that could save you hundreds of dollars a month. Do you have mobile phone service and home phone service? Could you cancel one of the two?