Save Money by Reducing Monthly Expenses

Anyone can cut back on spending in order to save money for an emergency fund or savings account. It is critical to work on reducing one's debt by cutting spending on a regular basis. Once a person has enough savings to cover his living expenses for six months, he has stability to afford extra luxuries. Whether the goal is to pump up the savings balance to qualify for a loan or to transfer a lump sum into the retirement account these handy tips are sure to provide the intended boost.

When monthly expenses are abstract figures that are not tied down to a budget, they can really run wild. Taking a note of everything spent for a determined period can help to streamline spending. Two to three months is usually sufficient to find a spending trend. Once the figures are on the page, it becomes easier to identify the money pits instead of asking at the end of every month, "Where does all the money go?"

Save Money on Entertainment

People can cut back by canceling their cable television or premium subscriptions. Many households spend thousands of dollars every year to get hundreds of television channels and high speed internet. One can save money by cutting back in this area. Another way to cut back on entertainment is to stop going out to movies and stop buying books. Instead, get a Netflix account to watch unlimited movies at home for a month for what it costs to go to the movies one time and check out books from the public library.

Cut Food Costs

Most families can save money on groceries. By planning weekly meals and not eating out, families can save tons of money. Parents should make a grocery list and stick to it on a weekly basis. It’s also helpful to use the same main ingredient for a few meals throughout the week such as chicken, turkey, or rice and beans. 

Taking lunch to work can significantly decrease the amount spent on meals for the week. Spend some time putting together a meal plan and then shop around it so it becomes easy to make dinners and lunches; no time will be wasted deliberating over what to make in the morning.

Pay Bills on Time and Cut Bank Fees People can lose hundreds of dollars every month with banking fees and late fees from not paying their bills on time. If a person has to pay a thirty dollar late fee every month, because she doesn't pay her cell phone bill on time, she could be saving $360 a year by paying it on time. Many banks charge fees for using other ATMs and monthly fees for overdraft protection. Everyone should check their monthly bank statements to see if fees are applied on a regular basis and figure out how to get rid of them. If needed, switch to a bank that won’t charge monthly fees. Many banks will negotiate if they think a person is going to take his business elsewhere.

Exercise for Free and Save on Gym Membership Gym memberships can be expensive, especially if they are not being fully utilized. There are many ways to get a good workout for free. Try taking a walk around the block or maybe using public walking trails if they are close by. Alternatively, a one-time investment in a series of Yoga DVDs and an exercise mat may be cheaper than spending money on a monthly gym membership.

Save Money on Transportation Save money on transportation by selling a car, carpooling, and using public transportation. If there is an option to take the bus or subway most of the time, utilize it. It's usually much more inexpensive than repairing a car, paying car insurance, and paying a monthly car payment. Families should consider selling one of their vehicles if possible, especially if they are paying a car payment each month. It could save thousands of dollars each year. If a person isn't able to sell his car, he should consider carpooling with a couple other people that he works with to save money on gas, especially if he lives close to other employees.

It can be difficult to find new ways to save, especially when money is tight, but there are always options. A little creativity and a lot of discipline can go a long way in the quest to increase the balance of a savings account.