How to cut back on expenses & reduce your anxiety

How can you trim your spending, cut back on expenses and reduce your living costs?

• Do an honest and full budget of your expenses—together with your partner if you have shared financial costs. Check your banking statements carefully and make sure you know what every single payment going out is for.
• Decide on the difference between what you want and what you need and what are the non-negotiables. Nobody is suggesting that you always forgo your morning cappuccino—but try to limit your luxury purchases as it all adds up.
• Try second hand and thrift shops as well as neighbourhood groups for stuff you need before instantly going for something new.
• Start a carpool for kids at the same school in your area, or to get to and from work to alleviate transport costs. This might also reduce your car insurance premium as you drive less.
• Service your vehicle regularly and check your tyre pressure to ensure that your car runs efficiently. Improve your driving habits to save fuel consumption (e.g. avoid sudden braking and acceleration) which increases fuel consumption. Consolidate errands to save both petrol and time.
• Plan and prepare! Stick to a weekly food menu and a monthly shopping list to avoid making impulse purchases. Look out for specials and loyalty savings, and stock up when you see non-perishable items on sale. Reduce your meat consumption and eat leftovers.
• It might seem obvious ,but watch your electricity usage. Unplug appliances when you are not using them. Turn lights off when you aren’t home and only use lights that you need. Switch to energy-efficient light bulbs and if possible, replace old appliances with energy-efficient models.
• Install surge protection devices to your most expensive electronic devices. It will save money in the long run even if the initial outlay is expensive. Switching to solar for lights and heating can be a costly investment, but will reduce your monthly electricity bill in the long term and give you lights shedding. Use a gas stove.
• If necessary, downsize to a smaller home or move to a more affordable neighbourhood. Take into account moving costs, levies, additional expenses and distance to work and schools. You could also consider renting out a room in your house, cottage or granny flat.
• Get alternate quotes for your home and car insurance to make sure you’re getting the best deals possible. Insuring all your assets with one insurer may give you a potential discount. You could also increase your excess payable to lower your monthly premium. This is a little riskier.
• Review all your insurance cover regularly to keep track of policies, especially if your life or circumstances have changed. This could result in large premium savings.
• Live within your means: this is a big one! Buying on credit or higher purchase is only going to cost you more in the long run and isn’t worth it. Is that fancy car really worth it? It’s also essential to leave a margin for savings and emergencies. Reach out to an adviser or financial planner for advice. Guidance from an expert can be invaluable.
• Join loyalty programmes- most stores offer them, and it can really help. Lots of small savings add up to one big saving.
• If you have kids, avoid allowing them to manipulate you into getting everything they want or what their friends have. What kids really need beyond food, education and shelter is your love and time not material things.

Hopefully, with these tips, you’ll feel more in control of your finances and not only reduce your costs but also your stress and anxiety.

READ FURTHER: 10 tips for coping with financial stress

*Compiled by an independent source