6 Ways to Reduce Household Costs

Most people are keen to find ways to increase their income and reduce their outgoings, but every now and again, the need to tighten the belt becomes even greater. Whether it’s because of a reduction in income or you are hoping to try and repay debts or save money, it can feel like an uphill struggle to get any financial breathing space. If you are able to take on extra work this will obviously help to make saving a bit easier, but for many people it’s simply not an option. Whatever your motivation, here are 6 ways you can reduce your household costs and free up some cash.

Change your grocery shopping and eating habits

Groceries are a huge part of our monthly outgoings and making a few simple changes to the way you shop can make a huge difference. Consider shopping at a store which has lower prices or buying in bulk where possible. Buying raw produce and making meals from scratch is often cheaper than buying processed brands and ready meals. If you are eating out regularly, you can save a lot of money by reducing or, ideally, stopping. 

Find a better deal on insurance and utilities

You can often find a cheaper deal on your utilities, home, and car insurance by shopping around. For example, when you need a home protection plan, do plenty of research to ensure you’re getting a good price for the level of cover you need. You can do the same with your TV and internet provider as a cable bill may be costing significantly more than one of the alternative streaming services. 

Look out for online deals

When you’re trying to cut back on costs, it can feel like you never have the opportunity to have fun or spoil your children, but you shouldn’t stop living. It’s about budgeting for these days out and trying to find great online deals and coupons. However, you need to remember to be strict with your spending money and eating expenses while you’re out. 

Use cash for everyday expenses

While it’s true that big expenses are easier to pay for on your card, try to use cash for your everyday expenses. It’s easier to limit your spending when you are using physical cash as opposed to swiping a card. You may have to be stricter with yourself and make difficult choices, but it will help you only buy what you really need.

Take a look at your big expenses

If you are really struggling to make a dent in your budget, it may be necessary to look at some of your bigger expenses such as your rent or car payments. Making changes here will be more complicated, but it might be possible to get a cheaper car, a cheaper place to live or to share with family or friends.

Pay your debts back as a priority

If you have high-interest debts such as a credit card you are likely to be paying a lot of interest each month without making a significant difference to how much you owe. Before you start saving the extra money you now have, it makes more financial sense to pay the debts first to minimize the extra interest you pay.