How To Reduce Your Expenses
We all wish we could spend less and save more, and yet we never seem to achieve the perfect equilibrium. But with the ImageNPay app you can learn to manage your money in a way that works for you.
A large part of knowing how to manage you money comes from understanding the difference between your NEEDS and WANTS. Many of our expenses come from unnecessary spending on wants. By identifying the difference you can reduce how much money you waste, leaving you with more at the end of the month to save and invest for the future!
"You don't have to stop spending money.
You just have to stop spending money on things that aren't important to you."
Here are some ways to help you reduce your expenses:
1) Have a Clear Budget
One way to do this is through budgeting. Budgeting doesn't have to be a negative, limiting task. Instead, being wise with your money expenses can ensure you still treat yourself at the end of the month.
Having a budget is crucial to identifying your NEEDS vs. your WANTS, allowing you to allocate money to different spending needs. This helps cut your unneeded expenses.
2) Calculate Cost Per Use
When debating whether the costs of a purchase is worth it, calculate the Cost Per Use. This is where you work out how much an item costs every time you use it. This is a great way to help you put into perspective what the cost of an item could cost future you:
Total cost of item / anticipated number of uses
3) Sleep On It
Here are some ways to help you cut your expenses: u reduce your expenses! Many of our unnecessary expenses are actually impulse buys. By sleeping on a purchase it gives you time to decide whether the spend is appropriate, or whether you actually needed the item in the first place.
4) Do Your Research
How many times have you bought something and then gone to the next shop and found it for cheaper? More times than you probably want to admit. Doing your reserach is key!
Many times you can find an item cheaper online or in another retailer. Make sure you compare prices to ensure you're getting the best price. This way you can save yourself money and cut your expenses.
5) Conduct a Monthly Audit of Your Spending
Having a budget is a great way to help you stick within your monthly limit, but it doesn't necessarily ensure you're spending in the right places. By conducting a monthly audit of your spending you can see exactly where that money is going, and whether it's being put to good use.
Next week we'll look at how you can save money on your food bill.