Knowing how to cut expenses is always important, whether you need to overcome financial hurdles or save money to meet your goals. For this reason, here are some recommendations by a financial exploitation attorney that can help you.
Tips to reduce expenses that Sofía Macías, author of the best-seller “Little Capitalist Pig”, has shared in Forbes
- Eliminate expenses that steal money from your budget. For example, memberships that you do not use but continue to pay, extra transportation expenses for getting up late, among others.
- Try to space out superfluous expenses, such as haircuts or meals on the street. If you usually spend on them about three times a month, you could reduce them to two or one.
- Does your taste, because sometimes the problem is not to give them to you, but to spend a lot on them. If for example, you have three drinks every time you go out, you could reduce them to two.
- Look for the same product or activity at a lower price or for free. An example might be jogging around the park instead of in a gym.
Tips to reduce expenses at home according to América TV
- Plan the weekly menu and make a list of what you will need to buy. This will help you stay on budget.
- Bet on your own brands from your trusted supermarket, as they tend to be cheaper and also of good quality.
- Cancel any service, such as the landline or streaming service, if the use you give them does not justify that you are paying them month by month.
Tips to control your expenses according to Allianz
- Reduce your “ant expenses”, those small but frequent expenses that mean a significant amount in the long term, such as eating on the street, buying a dessert, coffee, etc.
- Improve your electricity consumption. How? Avoid having many appliances on at the same time, using energy-saving light bulbs or only turning them on when you need them.
- If you feel that you are compulsive to buy, remember that this is a serious risk for your finances. Think about whether you really need that bag or video game right now, because maybe it’s better to schedule it as a future goal.
- Review your subscriptions and ask yourself if you take advantage of them. If you’re signed up to a gym you rarely go to or a newspaper you don’t read, you may need to cancel.
Recommendations to save money and reduce expenses according to various sources
- Hotmart recommends setting aside at least 10% of your income each month to save and even invest in the future.
- Business Insider suggests following the 50/30/20 rule: 50% for your essential expenses, 30% for variable expenses (clothes, leisure, etc) and 20% for savings.
- Jorge Carrillo, a professor at Pacífico Business School, recommends in Management to avoid credits in dollars if you earn insoles since their increase would make you pay more due to the exchange rate.
- RPP proposes the challenge of 52 weeks, which consists of saving S/1 in the first week, S/2 in the second, S/3 in the third and so on until reaching S/52 in the last week. That way, you would have saved S / 1378.
And what can I do with the money saved?
Summing up by the securities attorney, by reducing your expenses you will have savings to cover unforeseen events, emergencies or a product or service that gives you satisfaction. However, you could also invest it in search of future gains.