How to Cut Expenses When Things Get Tough; Timely Info

Most people across the nation, at one point or another, are faced with the necessity to cut expenses. Whether it be because of unexpected expenses arising, change in circumstances or, like at the time of this writing, the serious potential for an economic downturn and intense inflation.

Everyone has to Cut Expenses Occasionally

Anyone who does not have a sizable nest egg tucked away is going to have to look at ways to cut expenses. In fact, even if you do have some savings, you won’t have for long if you don’t cut back for a while.

In my last post, Budget Creation and Financial Planning, we discussed the process of setting up your budget, even if you’ve never done it before. It is a very good practice, regardless of the times, to use a budget but in times of financial hardship, it is an absolute MUST!

The very first place that you should look in order to cut expenses is in the initial work from setting up that budget. When you looked up and pulled together all of your expenses, you created a roadmap of cutting and trimming. So, let’s cut and trim.

The First Items on the Chopping Block – Non-Essential Luxuries

To give you an idea of what I’m talking about, think in these terms:

• What do I spend money on that I don’t actually need, even if it is just a tiny amount?
  • Typically, anything that is spur of the moment will be on this list. Impulse buys. If you stop for gas, and go inside the store and buy a coke, or candy, or whatever… Those have to go. You would be surprised at how much that adds up to.
  • A good rule is when you stop for gas, pay at the pump. Don’t even go in the store.
  • If you are at the grocery store, don’t buy anything at the cash register… every bit of that stuff is for suckers. Sorry, but it’s true. It’s a marketing ploy and a good one. Don’t fall for it.

• What do I buy prepared that I could prepare myself?
  • Coffee – Yes I am referring to $5 coffees. It may be painful for a while, but homelessness would suck. You can absolutely brew a good coffee at home and take it to work with you in an insulated mug.
  • Lunch on the go – McD’s, Burger King and yes, as much as I hate to say it, even Chick-fil-a. You can brown bag it for a while and you would be amazed at how much you can save. …on a side note, you will also feel better. It is much less expensive to build a sandwich or take leftovers from the night before than to spend the kind of money necessary to grab lunch on the go.

• What services do I pay for that I could handle myself?
  • Salon Appointments – This is where I know that I will lose some ladies. But, when times get financially tough, the tough don’t go running to the salon. Coloring, perming, manicures, etc. can all be done at home WAY cheaper.
  • Yard work/Landscaping – If you are physically capable, then mowing the lawn, shoveling the walk and all of these various tasks can be done without paying for a service. Plus, you get some exercise out of it, which brings me to the next point.
  • Gym Membership – There are so many resources out there that will give you the information necessary to have a great workout at home. And if you partner up with a family member or a friend, it can also be a lot of fun and a great time for challenging yourself.
  • Cable or Satellite Television – Many people have already ditched these companies in recent years because the cost has just gotten out of control and also because there are so many other options these days. Most people have internet anyway, so things like Roku, Sling, Hulu, Netflix have all really come on strong. For very little in comparison you can still have the luxury of chilling out with your favorite show. Personally, we recently switched out of our Dishnet account as soon as our contract ended. I saved over $100 per month with that switch and we still get the channels or movies that we want.

Cut Expenses on a Daily Basis

• How can I cut expenses in my daily life?
  • In terms of daily expenses, you obviously have to look at your utility bills. Where can you cut back, at the very least, shaving some money off of those bills. Every little bit helps.
    • Air conditioning – If the weather is mild, shut that thing off completely and open the windows. The fresh air will do you some good as well.
    • Change your filters regularly so that your unit runs efficiently.
    • Adjust your thermostat. If you are having to wear a sweater indoors in the summer, you are wasting money.
    • Depending on your circumstances, you can adjust a little in the winter as well. Don’t try to keep your house toasty warm. Put on a hoodie and turn the thermostat down. Also, if you have a fireplace and access to wood, then this may be a better option. Last year, our HVAC unit went out, during one of our coldest winters ever. We did not have the ability to get a new one until spring so we heated our home with our fireplace and a couple radiant space heaters. Our electric bill has never been lower. That is our plan for this winter as well.
    • Turn your water heater down a bit. You would be surprised at how much energy it draws.
    • Speaking of water, be conservative. Very few people need multiple showers per day, or marathon showers for that matter.
    • You can also conserve water by taking little steps that all add up. Hand wash dishes, use water from cooking to water your plants (after it has cooled).
  • When thinking about daily spending/saving, obviously you have to consider food. We already touched on the fact that you need to swear off of fast food, or lunch on the go, but what about the rest of the day?
    • Grocery shopping becomes a sporting challenge when you’re trying to save. Here’s a great first step:
      • Meal Planning – This is literally one of the most productive things that you can do for your family when trying to cut back. First inventory your pantry, fridge and freezer and plan from there. I am always amazed at how much I actually have available for meals when I do this. Sometimes, we get in a hurry and forget and sometimes we just fall back on the easy things that we make and that leaves a lot not getting used.
      • When you do go to the grocery store, just buy the fillers to go with what you already have to make meals. Also, for most items, the store brand is just the same. Don’t be fooled by catchy advertisements and name brands.
      • Also, ingredients are cheaper than prepared foods. If you have the time, buy up the ingredients and make a bunch of meals in advance. Freezer Cooking. I do it a lot. Mostly because I hate to spend a bunch of time every day to cook. So if I cook for a whole day over the weekend, I can have lots of meals ready to thaw and warm up, or throw in a crockpot or instant pot or whatever. Either way… it’s so much cheaper! (As a side note, there’s nothing better than homemade bread!) You can check out A Life on the Farm: Farm Cooking for more on that plus recipes.
  • Fuel Expense
    • Currently Gas and Diesel are already very high, and only getting higher with no end in sight so if you need to cut expenses this is an area that has to be considered. If you live in town or in a big city, you could do things like taking public transportation or sharing rides with friends. For those of us who live out of town, we have to be more careful. We live about 30 minutes from town. My husband has to go into town daily for work, but I don’t necessarily have to. Luckily, I work here. He, however, has to do all of the errands and what not because he is already there. We try not to make extra trips unless it is absolutely necessary.

Other Areas Where We Cut Expenses

Ok, so some of the other things that our family does to cut expenses may not be for everyone, but it does give you a little look inside what one family can do and you may be able to take a little inspiration from it.

• Grow and raise your own food. Not everyone lives in the country, so maybe livestock can’t really be your thing, but in some suburban areas, you can have chickens in the backyard and you can certainly grow a little garden. Even in urban areas, container planting is a real thing and while it may not provide your entire source of food, it could take a bit of the edge off that bill. You can check out Two Oaks Farm Talk where we give a great deal of information about gardening, farming, building and more.
• If you hunt, then let that supply your meat. We get all of our meat from what we raise and what we hunt. You have to have a viable way of preserving it; freezing, canning, etc. Another tip concerning this; learn how to butcher and process it yourself. Personally I do not pay someone else to do what I am capable of doing. My husband typically guts and skins and I butcher and process. It takes me a while, but I have become very proficient over the years. I never waste anything and I NEVER have to buy meat at the grocery store.
• I started making my own laundry detergent years ago. It’s easy and way cheaper than store-bought detergent. In fact, while we were recently doing some construction, our washing machine was displaced for a couple weeks and I had to hand wash the laundry and hang it to dry on the clothesline we built a few years ago. It wasn’t nearly as bad as I thought it might be and I learned that if necessary, I can absolutely do that again.

There are So Many Ways that Families can Cut Expenses if you Look Hard Enough

It really does just take a little digging into your expenses, where your money actually goes and what is most important to you. We, as a country, may have a very difficult economy for a while. We have to look at what we can do, individually, to help our families make it through. Prayer, a strong faith in God who guides us, and a little ingenuity on our part will help us along the way.