15 Proven Ways to Reduce Your Cost of Living

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Last updated on October 12th, 2024 at 04:30 pm

In case you just found yourself reading about the 15 proven ways to reduce your cost-of-living expenses, it’s not by accident. Yes, this is meant for you to get more tips on how to put right your expenses to save some more money.

Keeping up with the lifestyle you want requires some good money to take you on throughout the year also known as the cost of living. And also, it’s possible to reduce the cost of living and then at the same time have a decent lifestyle.

Reduced spending can boost your financial health if you do things correctly. So, when I did the math about the amount I used to spend on discretionary and necessities it made me step back on some expenses.

However, It’s a challenging move since life feels so good while spending on life’s wants and needs. Honestly, it takes some time to adopt the best practices to cut the cost of living.

Therefore, let us dive into details of how to cut the cost of living expenses to better your financial health.

Table of Contents

Reduce Your Cost of Living In 15 Best Proven Ways

Working on your cost of living expenses should all begin with you and to achieve the best you must put in some effort as below.

Rethink the Budget

One of the best ways how to reduce living costs is to look back into your budget and rethink your spending such that you can find ways to reduce the cost of living expenses.

Thinking through the budget for some time feels like much work but it’s very important in identifying more areas to cut back on. And also remember that your financial goals can be successfully achieved only when the budget is in control.

So, reconsidering the budget puts you in the driving seat to make things right. It’s a process to make things work your way but you get to see the benefits in case you stick to it.

Budgeting is tiresome, right? But it’s one of the top most proven ways you can use to reduce spending. Budgeting should become a habit and that’s why I always monitor my expenditure and income on a daily basis.

This helps you encounter any unhealthy deficits fast enough and also find ways to reduce spending on some items. Reconsidering the budget is a step that you shouldn’t miss out doing if you’re to successfully condense your cost of living expenses.

Cut Energy Expense

Further reducing your energy expense seems not a big deal but as you know, however small it all adds up to some figures that matter.

You can’t see yourself saving $40 per month on gas in the first place or $480 at the end of the year. This is because it doesn’t take any effort to achieve it but the amount you save can impact your cost of living.

Additionally, you can further borrow some expert advice from the United States Department of Energy about how best you can save on energy to reduce costs. Some of the best practices that you can use as suggested are in the bullets as laid down;

Upgrading to energy-efficient appliances that will save on energy costs. And also, it’s important checking whether there’re some rebates offered by the state in order to manage costs.

Understand peak and non-peak usage rates from the electricity service provider. This will help run energy-intensive appliances like clothes dryers and water heaters in non-peak times.

Investing in a programmable thermostat in that you don’t waste money heating the house when you’re not in the house. A lot of money is wasted on things that we don’t give attention to like energy which shoots up our cost of living at the end of the day.

Share Rent Costs

Another great way to lower cost of living expenses is sharing rent costs, I don’t know about you but sharing rent costs with someone else can really be a game changer.

It’s another option in case the amount you spend on rent every month is among the costs that shoot up your cost of living. I know most people want privacy and convenience but what to do yet you’re after lowering the cost of living costs.

Sharing rent will help you save thousands of dollars every month say sharing a $5000 two-bedroom apartment in New York.

When you do this you’re most likely to save up to $2500 every month which reduces your cost of living by $30000 every year on rent. Though it’s hard to get used to the system in relation to how much you earn you must get out of convenience.

Get Out of Debt

Living in debt all the time makes your cost of living to be high at all times throughout the year. But getting out of debt by paying them off can be one of the best strategies that you can use to lower expenditures.

I know it’s not easy to live a debt-free lifestyle for some people, but it’s very important when it comes to your budget.

Some time back you might have had a lot of debts to pay back every month ranging in hundreds and thousands of dollars every month. And then you came to realize that all those debts came up as a result of not spending mindfully whenever your checking account was credited.

But if you continue spending recklessly of course credit card debts, penalties, and outstanding monthly bills will all increase your cost of living.

Think through your expenses today or contact a professional to see how you can reduce money spent on debts if any.

Getting out of debt is one of the best ways you can use to reduce your cost of living expenses. And this will enable you even reach your financial goals much faster than before.

Reduce Grocery Spending

A big number of people find themselves spending a lot of money at grocery stores on every visit. Sincerely I can’t deny the fact that I fall into that category since with food I can’t help it.

And there’s no way you can fail to pull out the cash when you have it with you right at the store. Stores try their best to do all the eye-catching and enticing moves that will make you pay.

But when you stop stepping foot into the store and shop online, it’s a wise approach to costs cutting at home to save money over time. Buying groceries online works on impulsive spending and even reduces transport costs at the same time.

Lessen Car Insurance Costs

Insurance is an expense that you may not completely get rid of but you can try as much as possible to reduce the amount spent on it.

Talk to your insurance services provider for lower rates and in case it fails then try elsewhere for better quotes. What you save might be little with another service provider say $20 per month but it counts.

By the end of the year, you’ll have reduced spending on car insurance by $240 which is a pretty good deal. Look around for lower premium rates that will help you reduce your car insurance costs.

How to do it? Insurify has it all for you from your best service providers say from rates to premium payment options. And this will put you in a better position to make the right choice without much hustle since everything is automated.

Start Saving Money

Do you want to reduce how much you spend on your income? Then open up a savings account. Saving should be made a routine so that you can steadily keep up with sending money to your savings.

You won’t have much disposable income as you used to when you weren’t saving at all. The 50% / 30% / 20% rule identifies the 20% to go to savings and in case you start saving along this rule you’ll save some good money.

And there are several ways, you can reduce your expenses and save money. So, better-saving practices can also help you reduce how much you spend on expenses.

Reduce Eating Out

If you want to do away with too much spending, eating out should be limited. I know it’s hard to completely stop it but try as much as possible for some days to make your own meals.

And here you’ll reduce how much you spend eating and save more money in your budget. Even though you always have a tight schedule you can shop in bulk within the week to reduce moving to stores.

Making your own meals can save you over $100 on a monthly food budget. And it surely cuts your cost of living expense over the years when to do stick to it.

I don’t think you’ll spend much now eating out after reading through these lines since you want to lower your cost of living.

Minimize Water Bills Using A Water Meter

Are water bills making your cost of living high at some point in time? Then get yourself a water meter.

When you save around 5% to 15% as stated by the environment agency on your normal bill with a water meter it’s an achievement in a budget. Everything that rotates around money should be frustrating, right?

If you’re not financially stable then this can save you some money at some point no matter how little it is that you save. Respect each and every amount of money that comes up saved on a particular expense in a budget.

Look After Your Things

In order for your things to keep in good condition you have to always take care of them.

How often do you take your car for maintenance? How many times do you carry out general house cleaning and how do you protect your phone from being damaged?

If any of the above isn’t done correctly expect to spend money hence increasing your cost of living. There are people that spend thousands of dollars because they poorly manage their things.

So, in case you don’t give service to your car any mechanical breakdown that comes up can cost you hundreds and thousands of dollars. And this may drag you into borrowing so that you can repair the car at the time.

While on the other side when you take good care of your car or other things you won’t spend that much money. Looking after your things keeps you away from spending due to carelessness.

Buy Second-Hand Items

If you’re not yet into the world of second-hand items am sure you don’t agree with me on this one. But do you know that second-hand items can work the same way a new item does yet gotten at a cheaper cost?

In case you’re planning to lower your cost of living, using quality second-hand is a better option than buying new that’s poor quality though cheap. Yes, it’s true that second-hand or refurbished items might have some technical problems.

All you have to do is understand what you want or talk to some who knows to help you out in making choice. In my experience with saving am really enjoying yet at the same time in possession of what want at a lower price.

Some time back I got a brand new wiko phone which lasted for just one year, I had to get another one. Then later bought a cheap second-hand Huawei mate 10 that has lasted for more than a year now, it’s a good deal.

Mind About Your Health

Cut costs and save money by looking after yourself is one of the cheapest things that you can do to avoid spending on medical bills all the time. Your cost of living might be high as of now just because you don’t mind about your health.

Spending on medical isn’t bad when sick but it can be controlled with good health practices. That’s why you don’t have to eat whatever comes across your mouth since some foods are not healthy.

When you eat healthy foods, you’ll reduce your chances of getting diseases like diabetes, high blood pressure, and others. And it’s not only food that does wonders but also just mere working out keeps you healthy and fit.

So, please have a balanced diet and also try working out during your free time to keep healthy and save spending on health professionals.

Look Out for A Cheap Apartment

Still wondering how to cut living costs? If you want to cut down bills getting a cheap apartment is another option to choose.

This shouldn’t be too far away for convenience purposes say your workplace to avoid transport costs. You don’t have to rent an apartment that takes almost 30% of your monthly earnings.

Though it may not be your plan to get something cheap, if you want to save then you have to. And trust me when you shift to a cheap apartment you can every year save thousands of dollars than before.

So, you can have a normal life in that cheap apartment and this will also help you save up some money.

Shop Through Cashback Apps

Cash-back apps are a good way in which you can get some refunds on items that you buy. These will enable you to get items at cheaper costs without stepping foot into the stores.

Using these apps is one way in which you can get rid of credit card temptations. Cash backs are realistic and saving compared to credit card debts that include penalties.

Most common among the many are Ibotta and Rakuten, they give you some pretty good cashback on the purchases that you make. And this is all money saved from your expenses hence lowering your cost of living.

Get A Side Hustle Business

Wondering how to go about this? When you make more money, you’ll be able to easily cover your costs. And also, this means that your income will be higher than your total expenditure.

There’re lots of side hustle businesses that you can give try out to earn money to take you through. I started blogging as a side hustle though am doing it full-time now and it’s a promising business.

You can also look through a list of many to fix yourself where you can earn a living say dog walking, house sitting, or food delivery service.

Expect to get paid for your effort since people need such services out there. Therefore, a side hustle can get you money to effectively cover your expenses without any stress.

Final Word On Proven Ways to Reduce Your Cost of Living Expenses.

Reducing your cost of living it’s not a one-day process it needs time in order to get the best out of the practice. And your input determines your results at the end of it all that’s why you also have to look for the best strategy to use.

The fact is that you can’t use all the strategies but you can get one that fits you and then work along that line to reduce your cost of living.

It’s mostly about saving and reducing costs as much as possible in your budget to reach your financial goals faster using some strategies as outlined.