How to Economize Home Costs
Work out where the money is going., Identify unnecessary expenses., Become a smarter shopper., Analyze spending on utilities., Consider your expenses for entertainment and understand that you can always cut back.
Step-by-Step Guide
-
Step 1: Work out where the money is going.
It is vital to know where your money is going.
It is not possible to find areas where you can save if you do not have a clear picture of exactly what you are spending your money on.
Carry a little ledger or notebook around with you and jot down every penny that you spend.
While it is obvious to include expenses such as rent, utilities, groceries and gasoline, you must also include all small amounts such as morning coffee, lunch take-out, snacks or lottery tickets. -
Step 2: Identify unnecessary expenses.
Here is the part where you need to identify your “needs” vs your “wants”.
Are all of those coffees from the vending machine at work really a “need”? Do you need to get a take-out lunch every day or can you really bring lunch from home at a fraction of the cost? You may think that these are simply small amounts, but if you keep in mind that pennies count too, you will actually see that these small expenses add up quite fast and quite significantly by the end of the month.
Saving yourself only $5 each work day in unnecessary snacks will add up to $110 a month or $1,300 a year! , Many people spend much more than they plan to on their grocery bill.
In many instances you will find it difficult to understand just how you managed to spend so much.
It is important to become a wise shopper.
There are a number of points you should follow:
Plan a weekly menu so you know what ingredients you need.
Make a shopping list.
Avoid impulse buys and stick to your list.
Do not be tempted by specials on food items that are not necessary.
Buy fewer processed foods and more whole foods, as healthy foods are better for you. , Sometimes you might find yourself purchasing too many utilities; however, that is bad for both you and the environment.
Here are some things to consider.
Electricity – use it only when you need it.
This means that you should turn off lights when you leave a room; unplug devices when not in use; turn off your computer and other electronics when not in use.
Open the blinds to let light in when possible, rather than turning on a light.
Heating/cooling – Set your thermostat to “away” when you leave the house and make sure the settings are at a comfortable level – not too cold in the winter and not too hot in the summer that it will take a long time to return to normal when you come home.
Invest in ceiling fans to help circulate the air in the house and reduce the need for central heating/cooling.
Water – make sure you are not wasting water.
Check for leaks.
Make sure to turn off the faucet completely.
Turn off water when not in use, such as when brushing your teeth.
In the same way, examine you telephone bill, cell phone bill, cable, gasoline and more. , How much you are prepared to cut back will vary between people, but there are always options – the popcorn with the movie, the bottle of wine at dinner, the frequency of going out.
Shop for what you need and not what you want.
If you bought new shoes last month, then a new pair today is not necessary! By analyzing every area of your spending, you will be able to start saving! -
Step 3: Become a smarter shopper.
-
Step 4: Analyze spending on utilities.
-
Step 5: Consider your expenses for entertainment and understand that you can always cut back.
Detailed Guide
It is vital to know where your money is going.
It is not possible to find areas where you can save if you do not have a clear picture of exactly what you are spending your money on.
Carry a little ledger or notebook around with you and jot down every penny that you spend.
While it is obvious to include expenses such as rent, utilities, groceries and gasoline, you must also include all small amounts such as morning coffee, lunch take-out, snacks or lottery tickets.
Here is the part where you need to identify your “needs” vs your “wants”.
Are all of those coffees from the vending machine at work really a “need”? Do you need to get a take-out lunch every day or can you really bring lunch from home at a fraction of the cost? You may think that these are simply small amounts, but if you keep in mind that pennies count too, you will actually see that these small expenses add up quite fast and quite significantly by the end of the month.
Saving yourself only $5 each work day in unnecessary snacks will add up to $110 a month or $1,300 a year! , Many people spend much more than they plan to on their grocery bill.
In many instances you will find it difficult to understand just how you managed to spend so much.
It is important to become a wise shopper.
There are a number of points you should follow:
Plan a weekly menu so you know what ingredients you need.
Make a shopping list.
Avoid impulse buys and stick to your list.
Do not be tempted by specials on food items that are not necessary.
Buy fewer processed foods and more whole foods, as healthy foods are better for you. , Sometimes you might find yourself purchasing too many utilities; however, that is bad for both you and the environment.
Here are some things to consider.
Electricity – use it only when you need it.
This means that you should turn off lights when you leave a room; unplug devices when not in use; turn off your computer and other electronics when not in use.
Open the blinds to let light in when possible, rather than turning on a light.
Heating/cooling – Set your thermostat to “away” when you leave the house and make sure the settings are at a comfortable level – not too cold in the winter and not too hot in the summer that it will take a long time to return to normal when you come home.
Invest in ceiling fans to help circulate the air in the house and reduce the need for central heating/cooling.
Water – make sure you are not wasting water.
Check for leaks.
Make sure to turn off the faucet completely.
Turn off water when not in use, such as when brushing your teeth.
In the same way, examine you telephone bill, cell phone bill, cable, gasoline and more. , How much you are prepared to cut back will vary between people, but there are always options – the popcorn with the movie, the bottle of wine at dinner, the frequency of going out.
Shop for what you need and not what you want.
If you bought new shoes last month, then a new pair today is not necessary! By analyzing every area of your spending, you will be able to start saving!
About the Author
Teresa Gutierrez
A passionate writer with expertise in home improvement topics. Loves sharing practical knowledge.
Rate This Guide
How helpful was this guide? Click to rate: