How to Cut your Expenses to Stretch your Budget

Money may have become tighter for more and more families. Whether you’ve gone through your savings already or you’re worried about what is yet to come, it’s important to know where you can cut your expenses to save money right now.

While each family has different expenses and areas they can cut, we share some of our top tips to cut your expenses below.

Trim the Entertainment

Yes, we are all bored sitting at home, but there’s no reason to go overboard right now. Entertainment is probably one of the easiest areas to cut in your life. Consider cutting:

  • Subscriptions – How many subscriptions do you have? Do you use them, especially right now? Cutting your monthly subscriptions could save you significant money right now.
  • Movie streaming services – How many streaming services do you need? Can you cut it down to one main service that has most of what you need? 
  • Shopping – While we can’t go to many of our favorite stores, online shopping can be just as dangerous, if not worse. Shopping when you’re bored can lead to excessive and needless spending.

Cutting Food Expenses

You have to eat, but that doesn’t mean you have to overspend on it. Here are a few areas you can trim the fat:

  • Eating out – Use this time to hone your cooking skills at home and stop eating out.
  • Make lists – Plan your meals so that you don’t overspend. Once you plan your meals, make a list of all of the ingredients you need and stick to your list.
  • Make foods from scratch – Rather than buying processed foods, consider making some of your favorite foods from scratch. Not only will it save you money, but it will give you something to do too.

Cutting Miscellaneous Expenses

Other areas you can cut your expenses include:

  • Avoid using credit cards – The last thing you need right now is interest charges on your expenses. Try avoiding using credit cards at all costs.
  • Avoid late payments – If you can’t make a payment on time, contact your creditor. Right now, many companies are letting late payments go if let them know you’ve been affected by COVID-19, take advantage of this help.
  • Ask for mortgage assistance – If you can’t get your mortgage paid, consider mortgage assistance. Many lenders are deferring payments or offering other options that help you avoid excessive late fees and penalties while keeping your home safe.

Now is the time to keep as much money as you can. The financial lives of so many families are uncertain. It’s time to simplify your life, cut out all unnecessary expenses, and sacrifice for the time being. This won’t last forever and before we know it, we’ll be back at work and making money, but until then, it’s time to be financially savvy.