How to spend less money in daily life?
Contrary to what is usually thought, spending less money in daily life doesn’t mean living a frugal life. Reducing your expenses without affecting your lifestyle is possible… on condition that you adopt the cost killing strategy. With this new model of consumption, followed by more and more people, you rationalise your daily budget by avoiding waste and save money to grow your assets. Here are some things you can do right away to become a cost killer very quickly.
Analyse your budget
To get a handle on your money, start to analyse your budget. Keep track of your spending during the last 3 months and compare your income to your fixed expenses (lodging, energy, insurances, repayments of credits, subscriptions, etc.). This analysis will allow you to identify the expenses that could be reduced or cut back.
Don’t spend uselessly
You don’t pay attention to your useless expenses if you consider them one by one but they can represent a significant amount of money if you take them together over a full year. So say no to waste and ask yourself if all your expenses, event the smallest, are useful. Why do you subscribe to magazines that you never or rarely read? Do you really need a second car for your couple, if you both live and work in the city?
Stop impulse buying
Stop irrational expenses and impulse buying. Control your emotions and take the time to think about before buying, especially if the price is substantial. If you can’t resist the temptation, leave your credit card at home and avoid places that make you spend money such as the shopping centres. Don’t shop for groceries when you are hungry. You will be prone to purchasing more food than you might need or even want.
Plan out your purchases
Plan out your purchases and make a list of what you need every day, every week or every month. You will be less inclined to blow your budget and only buy what is most necessary. If you are fed up with throwing away excess food from your fridge, make a list before going to the store. You will see the difference!
Spend less energy
We can never stress this enough: the daily energy consumption of a household is one of the major expenses. With a few simple tricks, you can drive your energy costs down. Turn off the lights in empty rooms, don’t leave the battery chargers plugged in all night long and disable the sleep mode of your unused devices. Put on an additional sweater and socks during the winter and reduce the temperature at night or while you are away instead of turning the heat down. Take showers rather than baths and turn off the water when soaping yourself.
Carpool or take mass transportation whenever possible. Keep up a regular maintenance on your car and refill often your tires. Economical driving can also reduce your fuel expenses: don’t brake or accelerate suddenly, drive with the highest gear and use as much as possible engine braking.
Use your common sense
Of course, the tips described above could be completed by plenty of others. It depends on your personal situation and, with a little practice, you will easily find them by yourself. Use your common sense and focus on your objectives. Saving money is good but knowing what to do with these savings will bring you additional motivation to optimise your daily budget.
The queen of cards. There are many different types and they offer many possibilities other than cashless payment, from differed repayment to additional guarantees on purchases.
3D Secure is an internationally recognised security standard for online payments. The service is limited in Luxembourg to credit cards.
If it’s true that when we shop in a store and handover physical cash, the pain of paying finds the act prompts more awareness about spending, and parting with cash may even hurt a bit more than swiping a bank card.