Not all money-saving tactics require major life changes. If you know you need to trim your budget ASAP, start with recurring charges. Go through bank statements and credit card statements and make a list of every recurring charge. Group them by “wants” and “needs.” Cancel every recurring charge and subscription in the “wants” column. Add up your savings and create an automatic deposit of that exact amount of money into your savings account.
If you miss a subscription terribly, go ahead and reinstate it. Who knows, you may set yourself up for discounts or promotions when the company tries to get you back after you cancel.
Next, evaluate your unnecessary purchases. You don’t have to give up your daily latte. Ordering one size smaller or skipping the $3 brownie that you often purchase at the coffee shop allows you to trim expenses without sacrificing the routine and pleasure of your morning coffee.
If you often feel as if you spend too much money on little things, put yourself on a cash allowance. For example, if you think you currently spend $100 per week on lunches out, give yourself an $80 allowance for the week and see how it goes. The key to spending less by cutting small expenses is to immediately redirect the savings into an account separate from your everyday spending so you can watch the money accumulate.
