Managing personal expenses must be a stressful problem for many people. Nowadays, we mostly shop and eat quite liberally but rarely strictly manage our wallets. So how can you find a reasonable way to save on personal expenses ? Please refer to the following 10 methods that you can apply right now.
Table of Contents
1. Make a detailed and reasonable spending plan
The first step in saving personal expenses is to create a detailed spending budget. Budgeting will guide you to spend according to the plan and limit you have set. In addition, it is necessary to avoid spending too much, leading to deficits, and borrowing from outside to meet consumer needs.
Set up a spending budget
Expenditures in the budget will be divided into many sections such as consumption expenditure, savings expenditure, investment expenditure,… accompanied by specific limits. Setting a spending budget will create the habit of using income in a more scientific and reasonable way, ensuring your financial situation is always stable. You can refer to personal finance management methods such as “50/30/20 Rule”, ” 6 Financial Jar Rule “,… to build a spending plan for yourself.
2. Get into the habit of tracking personal income and expenses
After setting a budget, the next thing you need to do is try to spend according to the plan and regularly monitor those expenses. Only then can you know what expenses you have spent and whether any adjustments need to be made.
You can take notes on your expenses during the day in a notebook, on Excel or in applications that support income and expenditure management on your phone. Don’t ignore any income or expenditure, no matter how small, because taking full notes will help you see more specifically about your own spending habits.
Track daily expenses
3. Make a list before shopping
An effective way to save personal expenses is to make a list of items you need to buy before shopping. This will help you both save shopping time and limit the situation of “overspending” that most shoppers encounter.
From the shopping list, you can calculate and bring just the right amount. If you bring more money, the chances of you spending it on unnecessary items will be very high and easily wasted.
4. Do not spend too much on food
Organizing parties, festivals or regularly eating out is also one of the reasons why it costs a lot of money.
Get into the habit of spending money on food more reasonably to ensure limits for other necessary activities such as:
- Plan out the dishes you will cook during the week and the cooking schedule.
- Statistics on monthly spending on food to see which items need to be balanced or reduced.
- Cooking at home is more economical than eating out.
- When receiving your monthly income, consider mandatory expenses first, then savings and finally food.
Control spending on food and drinks
See more: Money saving tips you should apply
5. Don’t get caught up in promotions
Promotions are one of the biggest causes of draining your wallet. Who doesn’t like buy 1 get 1 free, 50% off,… especially with big, famous brands.
But before deciding to buy, you also need to consider whether those items are really necessary for the family at this time. Even if you buy a cheap item, if you don’t use it, it can be considered a waste.
Therefore, the best way to save on personal expenses is to think carefully before promotions and discounts. Don’t let them drain your pocket unscientifically and affect other spending sources.
6. Save money when using electricity and water
Electricity and water bills are monthly variable costs based on the volume used by consumers that month. If you use electricity and water wastefully, you may face financial pressure from these two types of bills.
So from now on, get into the habit of saving electricity and water from the smallest things like turning off all equipment and machinery when not in use. If not needed, don’t turn on the air conditioner at too low a temperature ( below 24oC), do not let the faucet overflow,…
Save costs through saving electricity and water
7. Do it yourself instead of hiring too much
Some families often hire someone to clean the house. Instead, why don’t you spend a little time renovating your house yourself? Or family members should also be responsible for dividing work among themselves. This both reduces the burden on one person’s shoulders and strengthens family bonds.
You can also learn how to repair simple machines and electrical equipment to save time and money compared to hiring outside workers.
8. Limit borrowing
In fact, borrowing money will help you overcome temporary difficulties, but it will also cause heavy financial pressure if you unfortunately do not manage to repay the debt in time. Not only does it affect other financial goals, but debt can also affect family relationships.
Therefore, you should limit borrowing money as much as possible. If you are forced to borrow, you need to plan to repay the debt as soon as possible with a specific amount and time. Prioritize paying off debt with high interest rates first to reduce monthly interest payments.
Limit borrowing to reduce financial pressure
In the case of spending via credit card, financial experts say that you will usually spend 12% more than with cash. Because when using a credit card, you will have to pay additional interest, usage fees, management fees, etc. every month, so it is quite expensive.
9. Liquidate old items
Another way to save on personal expenses is to get money back from liquidating unused items. You can post used clothes, shoes, equipment, etc. at cheap prices on social networking sites or resell them to acquaintances.
Liquidating old furniture will help free up space in your house while also providing a certain amount of money to spend on other necessary tasks. This method not only saves money but also helps protect the environment by limiting waste.
This article has shared with you 9 effective ways to save personal expenses , ensuring a stable financial situation for you and your family. Hopefully you will choose the most optimal way to balance your income and expenses.
