Sometimes it can feel like your paycheck disappears as soon as it hits your bank account. Between housing costs, groceries, credit card bills and everyday expenses, it can seem like you’re just scraping by and can’t get ahead. Whether you’re looking to save money, pay off debt or reach another financial goal, finding ways to cut costs can make a big difference.
If you don’t know where to start, you’re not alone. Making changes to your personal finances can feel overwhelming — in fact, around 40% of Americans aren’t confident in their ability to create a monthly budget.
There are many ways you can try to cut back on your monthly expenses, but the tips below can be a good place to start.
11 Ways To Lower Your Monthly Expenses
1. Track your spending
When trying to cut costs, it’s important to figure out where your money is going. Use a notebook or an app on your phone to keep track of when and how you spend money. It can help you identify spending habits and trends, which can help you find areas where you can cut back.
2. Create a budget
A budget is a great tool when you’re trying to reach a financial goal. It gives every dollar a job — helping you stay on top of your monthly bills and prioritize what matters. A simple budgeting plan starts by listing your fixed expenses like rent or mortgage payment, utility bills and car payments. Then adding flexible costs like groceries, gas and takeout. What’s left can go toward paying off debt or growing your emergency fund. The goal isn’t perfection — it’s control.
3. Cancel unused subscriptions
85% of Americans pay for a subscription they don’t use. Whether it’s a gym membership, a streaming service or an app subscription — they could be charging your debit card long after you’ve stopped using them. Take a moment to go through your statements a look for subscriptions you’re no longer using and cancel them.
4. Negotiate bills
You may be able to lower your monthly payments just by asking. Call your providers — like your cell phone carrier, internet company or car insurance provider — and ask about current discounts or more affordable plans. Comparing quotes from other companies can help you find a better deal or negotiate one.
5. Use less electricity
Lowering your energy use doesn’t have to mean discomfort. Try setting your thermostat a few degrees lower in winter or higher in summer. Unplug unused electronics, switch to energy-efficient light bulbs, and lower the temperature on your water heater to try and reduce your utility bills.
6. Cook at home more
Take out and food delivery costs can add up fast. Doing some meal planning and cooking at home may help you save money and reduce food waste. You can start simple — just one or two extra home-cooked meals each week can make a real difference.
7. Always shop with a list
If you’re cooking at home more, you’ll need to run to the grocery store. By making a list of exactly what you need and sticking to it you can make sure you get what you need without going over budget. A list keeps you focused and helps you avoid impulse buys. Sticking to a shopping list is one of the easiest ways to avoid overspending
8. Use coupons and discounts codes wisely
Search for promo codes before you buy online, or clip grocery coupons for your next shopping trip. Just be careful not to buy something just because it’s on sale — focus on deals for items you actually need. The best savings come from being intentional.
9. Pay down your debt
Interest rates can make credit card debt one of your most expensive monthly expenses. Paying even just a little more than the minimum can help reduce the total you spend over time. If you have a lot of high interest debt, you may want to consider debt consolidation or refinancing to lower your monthly payments if it fits your financial situation.
10. Reduce your transportation costs
Gas, maintenance, tolls and auto insurance can put a major dent in your budget. Consider using public transportation, biking or carpooling when possible. This can help you save on things like gas and maintenance. You may also want to consider shopping around to find a lower-cost insurance provider.
11. Lower your housing costs
If your rent or mortgage payment eats up a lot of your income, you may want to explore ways to reduce housing expenses. That could mean refinancing your home loan, finding a roommate, negotiating rent or moving to a more affordable place. You can also look into home insurances to see if there’s a more affordable option.
What to do when monthly expenses are too much
Look for opportunities to earn more
Extra income can ease the gap between bills and paychecks. That could include taking on freelance work, picking up a side hustle or selling unused items. Even small earnings can help cover things like grocery shopping or monthly bills.
Borrow from family or friends
Getting a small loan from family or friends can help provide some temporary relief. If you have someone you trust, consider asking them to borrow money before going to a lender. Family is more likely to offer you better borrowing terms and more flexibility with repayment. Just be sure to be upfront about your repayment plan and be sure to stick to it to avoid putting strain on your relationships.
Look into assistance programs
Depending on your financial situation, you may qualify for local or government programs that help with housing, utilities or food. You can explore your options with 211.org or your state’s human services department.
Look into emergency borrowing options
If you’ve exhausted your other options, a personal loan or line of credit can help provide quick cash in emergency situations.
Line of credit. A line of credit is a type of revolving credit. If approved, you’ll get access to funds up to a certain credit limit. You can draw funds up to your credit limit and as you repay, the funds will become available to borrow again. A line of credit can be good for covering on-going needs.
Personal loans. A personal installment loan provides you with an upfront, lump sum of cash that is paid back in smaller payments over a set period of time. They can come in handy if you have a large, one-time expense.
DISCLAIMER: This content is for informational purposes only and should not be considered financial, investment, tax or legal advice.
