Times are changing, recent global events have taken a toll on our personal finances, and the cost of living is only continuing to rise.
In such an environment, advice that is most commonly given is to focus on multiple streams of income through side hustles and passive income. While these ideas might be great for some, most of us simply don’t have the time or the resources for such solutions. Instead, reducing our largest expenses seems like the most viable option, and here are some simple ways you could minimize your household costs in 2022 as well:
Reduce your electricity usage
Minimizing your electricity usage is one of the simplest ways to reduce household expenses while improving your environmental sustainability as well. And even though electricity is essential, it accounts for around 12% of the household budget on average, meaning that reducing your consumption can save you a significant sum each month. And lowering energy consumption isn’t difficult either. Turning off lights and appliances when they’re not in use, only running dishwashers with full loads, air drying clothes instead of turning on the dryer, turning down your thermostat, and investing in smart sensors and systems are just some of the many simple steps you could take to reduce your monthly energy usage.
Reconsider your insurance
If you have any type of home, car, or other insurance, adjusting your policies could have a big impact on your monthly expenses. So, check your policies and see whether your providers offer reduced rates for making some home improvements, for instance, or even shop around in an effort to find more affordable policies with different providers. Most of us tend to simply pay our insurance and then forget about it until next time, but this mentality prevents you from negotiating discounts, finding better offers at a matched price, or getting cheaper policies with other providers, all of which could positively affect your household budget.
Try to cook more at home
Preparing and eating most of your meals at home can also save you a lot of money, as well as being a healthier option overall. If you don’t have time to cook meals each day, meal prep and weekly meal planning can be of great help. But groceries are key to success. If you’ve created a meal plan, always go grocery shopping with a prepared list to only buy what you truly need and avoid overspending on items that will end up getting thrown away. Buying local and seasonal groceries, hunting discounts and deals, as well as joining a rewards program could help to further reduce your grocery expenses.
Use car share solutions
Although often overlooked, owning a vehicle is among the largest household expenses for the average adult. Not only have fuel prices significantly increased, but the cost of maintenance, registration, and even purchasing new vehicles when the time comes can also add up to quite large expenses. Instead, choosing great car share solutions might be a much more affordable and convenient option. Operating through a handy app that allows you to book, unlock, and return a vehicle, car share represents a simple way to get around in newer and cleaner cars whenever you need a ride, as well as providing you the opportunity to be more sustainable with your daily transportation.
Shop around for services
Internet, TV, and phone plans are an absolute necessity in the modern world. However, it turns out that many individuals are actually paying for services they don’t use or need on a monthly basis. If that is the case with you as well, consider downsizing where possible. Choose the smallest TV package that suits your needs, limit your mobile data to what you actually use, and switch to fiber optic internet, for instance. Smaller plans can come with notable monthly savings. Similarly, you could call your current providers and ask for discounts or even shop around to find better plans with other providers and lower your expenses even further.
Cancel useless subscriptions
Along with necessary services, most people have additional subscriptions for streaming services, publications, delivery plans, etc. Although these subscriptions might seem small at first, they can quickly add up to noticeable monthly costs. For that reason, you might want to ask yourself how much you actually use your monthly subscriptions and whether you truly need them. You might realize that one music and video streaming service is enough, or that you don’t often read that magazine subscription you’ve had for years. Then, you can cancel any monthly subscription you don’t want or need any longer, and you will see that even the lowest of costs could have a large impact on your household budget.
Cutting household expenses is never an easy task, but it is a necessary one for improving your financial health. Follow the guide above, take it one step at a time, and make this process more manageable, and you might just be surprised at the positive results you see in 2022.
