How Can I Reduce my Living Expenses?

If you are finding it hard to manage on your earnings, then you might be looking for ways to keep your living expenses down. It is not always easy to think of ways to do this though. There are lots of different things that you can try but there is unlikely to be one thing that you can do that will make a significant difference on its own. Therefore, it is good to try a combination of things so that you are sure that you will be able to add up the small differences to make a bigger reduction.

Buy Cheaper Items

It may sound a bit obvious to say buy cheaper items but often we think we are spending less, when we are not. Firstly, make sure that you include everything when you are comparing prices to try to spend less. For example, make sure that you compare the cost of your insurance, loans you take out, utilities, phone contract, rent/mortgage and things like this regularly. Every six months to a year, check whether you are still paying a competitive rate or whether you should switch to a cheaper provider. These items cost us a lot of money and so it is possible that we could make bigger savings by switching providers for these.

Also, when we are shops make sure prices are compared. You may think that because you are in a shop that is known as a budget one that everything will be cheaper but this is not often the case. Sometime sin a budget shop the items might be cheaper but they could be smaller so make sure that you compare the price per 100g or 100ml so you know that you are definitely not paying more. Also the shop that will be the cheapest for you may depend on the type of things that you are buying and so you need to compare the prices of certain products across shops and you may want to buy some from one shop and some from another.

Buying cheaper items is a great way to save money.

Buy Less Items

Another way to cut down is buy less. Now this can apply to services as well as goods. So, if you use your phone less often, use less electricity, buy less insurance, borrow less money, you will be paying out less money as well. Of course, you can also cut back on items that you buy in the shops or online as well. These can somehow seem harder to cut back on as we like to treat ourselves every so often. However, if we can be well disciplined then we might be able to do this. Perhaps setting a budget for how much we allow ourselves to spend on this sort of item could be a wise idea. Then you will not need to go without entirely but you can keep a close check on what you are spending and make sure that you do not spend more than you can afford.


This is a quite an extreme solution but it can be really helpful. You will save a lot of money if you move to a smaller and cheaper property. Not only will you save money in rent or mortgage but you will also pay less council tax if you move into a lower band. It should also be cheaper to heat the place, assuming that the insulation is similar to the larger one. If you are not metered, your water bill may go down as well. You will also not have as much room to store items, which means that you may not be able to buy as much as before.

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