Cutting expenses is a popular idea but a challenging thing to do. Most of us want to earn more and spend less. However, cutting expenses is one of those painful areas of life. Spending money is fun but cutting expenses can feel like a chore. Often a family will become disillusioned because it seems like fun is being zapped. It doesn’t have to be that way, though.
I have good news for you! It’s possible to painlessly save over $1,000 annually without losing your joy or ticking off your spouse and kids.
Cutting expenses is a savvy stewardship move. When attempting to create wealth this is something that can be done immediately. Increasing one’s salary usually requires time. You can begin developing financial margin today!
Here are 40 Simple Ways To Scrutinize Spending. Any family can save at least $1,000 per year using these ideas.
Cutting Expenses — The Kitchen
Groceries are often a budget buster for many families. Inflation seems to be hitting food items more than other areas. Here are X ways to trim expenses in the kitchen.
Groceries
1) Shop at Aldi. The quality of Aldi food is similar to many other stores plus, they have the best satisfaction guarantee in the industry. Most families will easily save between 20% and 40% on food items. Aldi is great for eggs, pickles, olives, salad dressings, almond milk, nuts, certain breads, wine, lettuce, scallions, garlic, radishes, cucumbers, oatmeal, and similar items.
2) Make a grocery list and stick to it. Plan your meals and buy only what’s needed. Pretend your family is a business trying to save money on excess inventory.
3) Shop online and pick up your groceries. Some find marketing ploys irresistible and buy things that are not intended. If that’s you shopping online and picking up groceries could be a way to save some green.
4) Time the supermarket sales. We have an economical grocer in the Midwest that is awesome. We purchase half of our groceries there and the other half at Aldi. This regional grocer has regular sales on specific items throughout the year. One such thing is charcoal. I buy charcoal the week of Memorial Day and Independence Day as it’s sold at a 40% discount.
Cutting Expenses — The Garage
Gasoline expenses can be burdensome. Here are a few ways to save money with your automobiles.
5) Maintain proper tire pressure. This might seem like a silly idea but it’s not. Improper tire pressure negatively affects gas mileage. It also ensures uneven wear and tear on tires.
6) Use Regular Gas (87 Octane). Many luxury automobiles require premium gas. If your vehicle requires it, then you must follow the manufacturer’s recommendation. However, there are no tangible benefits when putting premium fuel in a car that does not require it.
7) Get regular oil changes. Keeping the oil clean and fresh in your automobile reduces unnecessary repairs. Many things can go wrong in a vehicle because of dirty oil. This is something that must be in your budget. Automobiles that use synthetic oil can go 5,000 miles between oil changes. Some garages recommend 3,000 but that is unnecessary.
Japan vs. Germany
8) Buy reliable automobiles with low cost of ownership. German automobiles might impress your friends but they are expensive to maintain. Porsche, BMW, Audi, and Mercedes-Benz have the highest cost of ownership of all vehicles (Consumer Reports). Toyota, by far, has the lowest cost of ownership. Others in the top five are Lincoln, Buick, Mazda, and Hyundai.
9) Use an independent insurance agent. Flo, Dr. Rick, Mayhem, Jake, and Doug have funny commercials. Those commercials cost a ton of money, though. Guess who eventually picks up the tab? We switched to an independent company several years ago when we parted ways with Jake. This move saved us several hundred dollars annually and we received superior coverage.
10) Use an independent mechanic for auto repairs. Dealerships make their money in the garage. Someone has to pay for that nice building and it’s not from selling cars. Find a quality independent mechanic and don’t let them go. You will save thousands of dollars in repair bills. Avoid every chain store as well. Some provide better service than others but they all, and I mean all, charge way more than necessary.
11) Buy vehicles from people and not from dealerships. There are dozens of sites designed to sell automobiles. You’re no longer limited to what’s for sale in your neighborhood. Buying from a person will save you hundreds and possibly thousands of dollars when buying a vehicle. Plus, you don’t need to deal with a swarmy sales manager at the dealership.
Cutting Expenses — Utilities
Parents have fought with children over utilities since the invention of the lightbulb. The struggle is real.
12) Make one of your children the electricity czar. Children like responsibility and authority. Hire one of your children to police the lights in the house. Make it a game. Have fun with it. Issue citations for violations and provide rewards for compliance.
13) Turn the temperature down the water heater. Water heaters are responsible for about 15% of a monthly utility bill (CNET). The professionals indicate that the ideal water heater temperature is 120 degrees Fahrenheit. Most are factory-set to 140 degrees, though. Turn it down and save some money.
14) Turn the thermostat up in the summer. Professionals recommend setting the A/C to 78 degrees Fahrenheit in the summer. I find that a bit high especially with humidity. We set ours to around 75 or 76 and it’s comfortable.
15) Turn the thermostat down in the winter. Here the professionals recommend 68 degrees Fahrenheit. I’m fine with that but my wife is not. Sometimes we go up to 70 degrees.
16) Prevent drafts and close the cracks. The NRDC states that if one were to add up all of the gaps around windows and doors in the typical house it would equal a 3×3 (feet) hole in the wall. A reasonable person would get that fixed immediately. A draft here and a crack there is harder to see, though. Caulk, weather stripping, and door “shoes” are great value. Additionally, outlet insulation is a simple and inexpensive fix as well.
Kitchen Utilities
17) Set your freezer temperature to 5 degrees. If you’re scrutinizing expenses and learning to become a savvy steward every dollar matters. Appliance manufacturers often recommend a setting of zero. The NRDC indicates that 5 degrees is fine for a freezer, though.
18) What’s the proper refrigerator temperature? Cold drinks are important but ice is not scarce. One can go as high as 42 degrees on the fridge without incident (NRDC).
19) Only wash full loads in the dishwasher. Self explanatory.
20) Run the dishwasher in the evening. Many utility companies lower their rates during off-peak hours.
21) Air dry dishes instead of using the heat dry process. Not all units have the option, though.
Laundry Utilities
22) Wash clothes in cold water. Hot water is rarely necessary. Select the cold (tap) setting on your machine.
23) Use a clothesline if possible. A clothesline might seem provincial and out-of-step but do you really care what your neighbors think? A dryer often uses as much energy as your refrigerator, washing machine, and dishwasher combined. Plus, your clothes will smell great!
24) Throw a dry towel in the dryer with your wet clothing. The good people at Earth Breeze state that adding a dry towel to wet clothes speeds up the drying time and is a natural wrinkle remover.
Cutting Expenses — Restaurants
25) Go to restaurants where children eat free. Many restaurants offer deals where children eat for free. Each restaurant will have conditions for the deal. Some of the more popular places that offer this are Smashburger, Dickey’s Barbecue Pit, Moe’s Southwest Grill, and IHOP.
26) Ask for a senior discount. More and more places are offering discounts for seniors. Often these start when a person turns 55.
27) Skip the appetizer. Appetizers are restaurant profit centers and are often overpriced.
28) Skip the booze. The markup on adult beverages at restaurants is super high.
29) Get takeout. Drinks, even soft drinks, can add about 20% to a restaurant bill. Why not get some Chinese food, some chopsticks, and go to a park? You will avoid the extra cost of drinks and the 15-20% tip.
30) Avoid restaurants altogether. If your financial situation is dire perhaps avoiding restaurants completely is the best course of action.
Cutting Expenses — Health and Beauty
31) Extend your haircut for a week or two. This small move will save a family a few hundred dollars per year.
32) Purchase hair products elsewhere. I understand that you want to support your local salon. However, if the same product is 25% more in their store than elsewhere you’re getting financially hosed.
33) Investigate Aldi and TJ Maxx for similar products. Aldi is famous for offering great deals and reasonable prices. Check their aisle of health and beauty and take a flyer on an alternative named product. TJ Maxx often has surprise deals.
34) Comb in shampoo and conditioner. Some hair product is super expensive and you will not use something else. In that case, perhaps using less of the product is wise. Keep a regular comb in the shower. Use half of your usual amount of product and comb it in for better coverage.
35) Check out Nordstrom Rack and Saks Off Fifth. If you must have a certain luxury brand check out these two stores. You just might be surprised.
36) Buy in bulk. When you find a specific product you want/need buy it in bulk when it’s on sale.
37) Men, for the love of all things holy, stop going to a salon. You should not be paying $50 or more for a haircut. Go to a barbershop and get your neck shaved with a straight razor for much less. I’m sure your family could find a way to use that extra $25o each year.
Cutting Expenses — Clothing
38) Shop at resale stores such as Goodwill and Plato’s Closet. I’m currently wearing a pair of jeans that normally cost around $100 that I got for $5 at a Goodwill store.
39) You don’t get what you don’t pay for. Early in my life, I would buy shoes from a discount store for extremely cheap. The shoes were uncomfortable and felt cheap because they were cheap. Buying high-priced items is not always an image thing. Often it’s simply because well-made items will last longer than cheaply-made items.
40) Never buy clothing that is not on sale. You want to be a savvy steward. Savvy stewards care what Jesus thinks and not their Instagram friends. If you’re looking to save some money so you can send Bibles to India then having the latest and greatest fashion is not overly important. Clothing quickly gets discounted. Buy only when things are on sale.
Savvy Stewardship
The British cycling team began winning championships after making incremental gains in their processes. Their coach conducted a wing-to-wing audit of their processes and found ways to incrementally improve each area.
We must have the same mindset when it comes to stewardship. Most American families are living paycheck to paycheck. It’s not just a lack of money. Even families earning six figures are struggling.
I invite you to take a deep dive into every area of your financial life. These forty suggestions should just be a starting point for you. Dig deep and find ways to cut your expenses. Small gains in many areas will be less painful than one large change.
I dare you to profit!