15 Ways to Reduce Your Spending to Free Up Your Money

15 Ways to Reduce Your Spending to Free Up Your Money

For those of you who may be unfamiliar with my story: I am a stay-at-home mom living in the NYC Metropolitan area. My husband is a teacher, and we have 3 children. Together we achieved the impossible: We live in one of the most expensive areas in the country, own property, own both of our cars, all on a government employee’s salary.  One of the ways we were able to achieve and maintain this lifestyle is to reduce our spending. Below are 15 tips we’ve implemented to achieve financial wellness and peace. 

Housing

1. Reduce your rent/mortgage.

Your rent or mortgage is usually your biggest expense and the fastest way to save money. Consider downsizing by moving to a less expensive area or a smaller place for a while. Rent or sublet your home for more than what you are paying, and move to a smaller home. If you don’t have anything tying you to a particular neighborhood, consider moving to a less expensive location. When we were looking to reduce our expenses, we gave up our apartment all together and moved in with our family members for 3 years who charged us next to nothing. This allowed us to pay off our debt and save up a substantial downpayment on our future home. I've also learned of a couple that sold their home, lived in an inexpensive RV with their kids for a few years, and raised close to $900k. They were able to purchase their dream home in cash. Wouldn’t that be nice?

Food

2. No more take-out food!

One year we spent over $10K in restaurant and take-out food. It broke my heart. It is a convenient but an unnecessary expense. Make all your meals at home. Bring your lunch to work every day. 

3. Meal prep for the week all at once.

When you cook at home, cook in bulk so that you can take some leftovers into work for lunch, or have dinner ready when you get home. It will reduce the temptation to eat out. 

4. Shop Sales. 

When nonperishable items go on sale, buy in bulk so that you don’t have to pay full price when you run out of essential items. Take the time to compare sale prices at multiple stores in your area, and don’t be ashamed to clip a coupon! 

5. Shop Seasonally.

Certain produce harvest at different points in the year. Building your menu around this concept allows you to spend money on the most inexpensive produce of the season. 

6. Shop Generic or store brand.

If the ingredients and nutrients are the same, consider generic or store brands. They are usually cheaper and similar in taste and quality. 

Self-Care

7. Cancel Your Gym Membership.

Do you need your gym membership, or could you get by with a home exercise routine? You can take advantage of the outdoors in the warmer months, and there are many free workouts online. Purchasing a fitness app is usually cheaper than most gym memberships. 

8. Reduce grooming expenses.

Cut back on the frequency in which you pay for hair and nail care, or consider doing it yourself. Many of us had forsake these luxuries while the sheltering in place during the COVID-19 pandemic. It was inconvenient, but we survived.

9. Cut back on clothes shopping. 

Only buy what you need. When you do shop, consider shopping at a thrift store or do a clothing swap with your friends. You can bring all of your clothing that’s in good shape but perhaps too small (or maybe too big) and swap with your friends. Donate any leftover clothes to charity and get a tax receipt for additional savings.

 

10. Re-evaluate your insurance.

Whether it’s life, health, or travel insurance, shop around, compare prices, and make sure you’re getting the best deal for the least amount of money. For health insurance, consider a higher deductible health plan; these plans offer a lower premium (monthly costs). This is a good option for people who don’t rely on regular medications or go to the doctor all that much, and simply need coverage for a health emergency. Just make sure to weigh the expected savings against the additional amount you may have to pay out-of-pocket each year.

Entertainment

11. Reduce or eliminate your cable bill.

Perhaps you could downgrade from premium to basic cable. Perhaps you could eliminate your cable bill entirely and switch to a streaming service. Even if you combine Hulu, Netflix, and Disney +, it would still be cheaper than most monthly cable bills.

12. Look for inexpensive entertainment options.

Do you take advantage of your local library? Do you attend local community events like music festivals and art fairs? If you live near NYC or any major city, there are so many free activities, especially in spring and summer. Consider playing games or a movie night with friends. Now, there are ways to do all of these things virtually. If you must spend money, consider using sites like Living Social or Groupon for cheap deals. 

13. Find new ways to reduce your vacation expenses.

Limit your trips to places within driving distance. Consider visiting places near family and friends who can offer you free lodging. If you chose to stay in a hotel, consider hotels that offer complimentary breakfast, and have mini-fridges and microwaves where you can store easily cooked food. This way you can make a low-cost lunch as well.  Rental homes like Air BnB’s are good options because you usually have a full kitchen at your disposal. 

14. Lower your cell phone bill.

Ask yourself how much you really use your cell phone’s data plan. If it’s not all that much, look for ways to downgrade to a cheaper cell phone plan or find a cheaper carrier. Don’t buy the latest model smartphone. Buy a slightly older phone or buy a used phone for a much cheaper price. 

15. Reduce or eliminate organized child activities.

Parents tend to spend a lot of time and money on kid’s activities. Does your child really need to be in multiple extracurricular activities at once? Consider limiting your child to one activity a year and save yourself the money and the time! Also, look into your city’s parks and recreation department for free programs. This year my son participated in free piano and art lessons, and a free T-ball league.