Cutting Expenses Could Be Difficult but Not Impossible

Frugality is not what I like but at the same time, I am not fond of going on spending spree. However, that attitude has earned me no fame. My friends and even relatives don’t think very highly of me, labeling me a miser. I don’t mind that and strongly believe that my spending pattern will help me a worry-free financial life forever. Instead of impulsive purchase, I prefer spending for what I need. I never allow myself to be influenced by Veblen effect. I set my goals based on my requirements and this approach could be a reason for you to revisit your spending habit.

Frugality

How to spend money is a million dollar question and in fact, could make you richer or pauper, no matter how much you are earning. ‘Cut your coat according to cloth’ – I’ve always been a firm believer in this adage. I spend on only those that meet my needs and ensure value addition to my satisfaction.

Housing Expenses

I shifted from a big apartment to a small and low-cost one a decade ago. I rented our previous apartment for two purposes. First of all, I wanted to support my township living financially and secondly, the decision was expected to earn me good saving. When saving accumulated to a decent figure, I bought a townhouse. I owned the house at a time when property price was nowhere as it is today but sold it after eclipse of recession ceased to exit. Finally I settled at country side, with lot of greeneries on all hands. City-like facilities are available here at a lower cost and most importantly, I can take fresh air.

Saving on Utility Bills

As a part of my expenses-trimming plan, I always look forwards to spending less for everything. So I switched from hot water to cold water for washing. That saved me more than 30% on utility bills. I bought a set of CFLs to replace my old light bulbs. I also make sure limited use of air conditions and that saves me a considerable sum on power bill.

Cutting on Grocery Bill

Groceries take up a lion’s share of your total expenses. I collect coupons as many as possible. I am also a regular at the supermarket. These steps help me get the best things at the lowest price.

Mortgage Refinancing

Many are jumping onto this bandwagon. I have a very pleasant experience in this regard. I switched from my 20-year fixed rate mortgage to 10-year mortgage. Due to impressive credit score, I was able to negotiate with my bank and as a result, my remortgage interest rate dropped to less than 5%, with other fees also waived.

Insurance Policies

Just like many of you, I own a good number of insurance policies including house insurance, automobile insurance, life insurance coverage for myself and my entire family. Insurance premiums eat up a goodly sum. So to minimize the figure, I searched on the internet to find out the least expensive schemes. And I did not fail to find out the right policies for my car, home and family.

Conclusion

It’s really not easy to cut expenses, at least immediately. And more difficult is to maintain your new spending habit. I have chosen a path for me and am determined to stick with it as I can get to enjoy the same lifestyle while paying less. The goals should be to get more for less and with willpower; you will hopefully be able to ensure a solid cut on your expenses.

Leave a Reply