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5 Ways To Cut Down On Expenses. Part 2

5 Ways To Cut Down On Expenses. Part 2

1. Budget.

A budget is a written down plan for your money. It is an estimate of how much you have as inflow and how much you plan to spend on each item at a particular time. For you to cut down on your expenses, you must have a list when you go out shopping to which you have to attach a cost. When you do that to every of your naira and kobo, you will be able to identify what is taking the chunk of your money and you can either reduce your spending on that item or even remove it completely from your list thereby giving you some savings. Also, track your expenditures by writing down how much you spend daily. Not only will you be surprised with your findings but this will be the push you need to cut down on spending.

2. No Spending Test.

It is possible not to spend any money in a day or very minimal money. So challenge yourself to the no spending contest. If you are the type that always buys lunch at work, decide to cook and bring it to the office, of course, it will mean waking up earlier than usual but doing this will put more cash into your pocket. Reduce the rate of going out to the joints with friends to drink. Take for example if you spend 3000 thousand naira daily three times a week and times four weeks, plus twelve months you spent 3000*3*4*12 = N420,000. This is how much you would have spent on drinks in a year which would have bought you a piece a land. So have a change of mind.

3. Car.

For you to cut down expenses on your car, buy a fuel-efficient car that will not consume too much fuel to save fuel cost. Another thing to do in this economic gloom is instead of buying a brand new car in, buy a good fairly used car and also have a comprehensive insurance cover to the car in case of an accident. If the car is very good keep it for a longer period and don’t follow the fashion fad of changing cars.

4. Learn To Perform House Task/Chores.

If you learn and are able to perform some domestic tasks/chores yourself you can save tonnes of money. For example, you can cut or plait your children’s hair to reduce cost. Wash your clothes or do the laundry and if the time is just not there after the washing, give it out for ironing. Learn how to paint your house and also plumbing job. All these will help in reducing cost.

5. Clothes.

Nigerians especially women love fashion and having new clothes and I realized that this takes a great percentage of our income (my personal experience) which can lead to falling into debts. I decided at the beginning of the year 2016 not to buy any new clothes for myself. So far the grace has been sufficient but for the different aso ebi, I have not bought any new clothes and the heavens have not fallen. Discipline is needed in this area but it is a gradual process with determination. Do your shopping around the festive period when shops have sales and buy in bulk to last for some time. Buy clothes also at offseason and store for the next season.

Reducing or controlling spending is not an easy task, however, with good financial planning and discipline; and putting into practice the above 10 tips on cutting down expenses, with real determination you will succeed.

What else do you do to save more money? Just drop your comment!

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