5 Ways to Cut Spending
It’s often the smaller things that add up to huge costs over time – stopping the smaller costs may amount to significant savings in the long run. Here are 5 ways to reduce expenses every month.
1. Turn off the television
Satellite subscriptions can cost anything from R200 to R800 per month. If you find that you’re not using the premium channels that often, it may be worthwhile downgrading your service to a cheaper option.
2. Review your subscriptions or memberships
Do you subscribe to magazines that you hardly have time to read? How about that New Years resolution gym membership you purchased that you don’t even use? These subscriptions can slowly drain hundreds of Rands from your wallet every year. Individually, they don’t seem very costly but over time, many of these underused subscriptions are costing a lot of money. Evaluate what you really use and don’t use and get reduce expenses this way.
3. Avoid banking fees
Banks are regularly changing their products and you may be paying a monthly fee without thinking twice about it. On top of monthly fees for accounts, watch out for fees associated with overdraft protection, paper statements or excessive transactions.
4. Pay your bills on time
This may seem like common sense, but it is easy to forget a bill and end up with a late fee (which can be substantial). If you have trouble keeping track of due dates, check into automatic electronic payment plans or debit orders that might be available.
5. Keep eating lunch out at a minimum
Eating out can be costly, and for many busy professionals it is almost a necessity. When last have you evaluated what your lunch bill was? What are the monthly costs and annual costs? And if your spouse is eating out too this can equate to substantial costs over a period of time.Try to cut back on buying lunch by bringing lunch to work just two days a week to start. Even this can save a few hundred Rand per year. Not only does it save money, but generally a packed lunch from home will be healthier than whatever you eat at a restaurant or as a takeaway.