One of the easiest things you can do to keep more money in your pockets is to lower your monthly spending. That may not sound like it’s possible, but you won’t know for sure unless you look. The best way to look is for you to start tracking your expenses so you can see where the money is going each month. Then you can see what areas you need to target for a lower expense.
Tracking your expenses may seem trivial, but it can really help you see exactly where your money is being spent. Even still, we all have certain expenses that may be harder to lower. But you won’t know until you look.
Typically, your expenses include:
Home living expense, Rent or mortgage (home taxes, home insurance)
Food (Groceries)
Utility bills (water, gas, electric)
Internet, TV, Phone
Transportation cost (bus/train passes, gas, vehicle taxes, vehicle insurance)
Clothes
Personal care essentials (toilet paper, shampoo, toothpaste etc)
Medical and Dental expenses
Entertainment expenses (Eating out, Going out, Alcohol)
You could definitely lower your expenses by living in a very different way, like moving in with your parents, for example, or getting an extra roommate. However, I’m guessing a lot of you are like me and just don’t want to resort to that type of lifestyle change to save money. If you must, then by all means go ahead and cut that rent in half by adding another roomie. But if you’re like me and cringe at the thought of dealing with another roommate then we need to look elsewhere.
Unfortunately, the biggest expense we have is usually our Rent or Mortgage. The only way to fix that expense is to either get another roommate or to move somewhere else that costs less. Moving somewhere else may be a great choice if you’ve found yourself stuck in a place that is just too expensive for you. Maybe you just don’t like it there. Just don’t forget about all the costs that come with moving.