Yahoo Finance 7 Ways I Cut My Spending by $200 a Month
Saving just $200 a month may not sound like a big deal, but that amounts to $2,400 yearly. This extra money can go a long way toward your other financial goals, like saving or investing. Also, aiming at a “reachable” goal, like saving $200 a month, could eventually save much more each month once you get the hang of it. Here are tips on how to save $200 or more each month.
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1. Optimize Your Food Budget
Food is probably one of the largest expenses most people have, next to housing and transportation. You can reduce your food budget in many ways, including meal planning and advanced meal preparation. This may also lead you to eat out less, which can shave tons off your food spending. Another strategy that works is to use coupons for grocery items and even restaurant outings to save money.
2. Audit Your Subscriptions
Frugal living expert and finfluencer, Jennifer Cook, suggests taking stock of all your recurring charges and figuring out 1) if you need them 2) if you are even using them! She also suggests that you “Check makeup boxes and food delivery services to see if you’re really getting value from them.” If you’re not getting a lot of value from them, it’s best to cancel. Removing these unwanted charges from your monthly budget could save hundreds of dollars a year alone.
3. Borrow, Not Buy
Kara Perez is a sustainable money expert and the founder of Go Bravely. She shares one of her frugal strategies for borrowing items, “I save money every month by simply asking myself, ‘Can I get this without spending money?'” She explains, “For example, special occasion clothing, like a dress to wear to a wedding or a costume, tends to be expensive. Since I only need these clothes sporadically, I ask friends or family members if I can borrow a dress for a day instead of buying a new one. I pay for professional cleaning, usually $10, and it saves me a lot of money. Plus, it keeps my closet uncluttered!”
4. Tweak Your Entertainment and Leisure Spending
Yarelys Tifa is a financial educator and founder of Cash is Queen. She’s saved a lot of money by bringing one of her favorite diversions home. She explains, “I no longer buy paint and sip events/tickets after discovering how fun it is to do in the comfort of your home! We get supplies from Dollar Tree or Michaels (canvases, paint brushes, paint, etc.) when they have sales.” At $50-$60 a pop, just skipping a few outings means the potential to save a lot of money in the entertainment category.
5. Shop Around
Many tend to stick with their long-time providers without realizing how much they could save by simply shopping around. When it comes to insurance, whether it’s for your home, car, or health, getting quotes from multiple providers can help you find the best deal. Even small monthly savings can add up over time.
Tiffany Grant is an Accredited Financial Counselor (AFC) and the Money Talk with Tiff podcast host. She shops around every six months for insurance, “The most I’ve saved was like $100 switching companies. Some of my clients have saved up to $200 or so.”
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6. Check for Discounts
You may be eligible for certain discounts based on your usage, age, veteran status and more. Tamika Howell, Accredited Financial Counselor (AFC), says, “If driving and living in a heavily tolled area, find out if there are discounts for frequent usage, certain state or city residents, seniors etc.” For example, you may get a defensive driver discount on your insurance by taking a course or a senior discount at your favorite fast food place.
7. Avoid Debt
Avoiding bad debt is a key strategy for saving money each month. High-interest credit card debt, payday loans, and other forms of consumer debt can really eat into your budget. The money that you are spending on interest is money that you could be saving!
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