GREENWICH, CT / Budgeting isn’t easy, but it can be the difference between a life in debt and a life of financial freedom. Financial planner Anamika Madan explained that taking a look at your monthly expenses is an excellent way to understand where your money is going and how you can reduce spending. She recently provided several easy ways to cut back on your monthly expenses.
“There’s no doubt you want to reach your money goals as quickly as possible,” Anamika Madan of Greenwich said. “One of the best ways to do this is to cut monthly expenses.”
Anamika Madan explained that you can save more money more quickly by cutting your major expenses, like transportation, housing, and food. Anamika Madan added that the first step is to analyze your bank accounts and credit card statements to find out where your money is going. This will help you understand areas where expenses can be cut.
Anamika Madan of Greenwich explained that utilities are major expenses. However, there are numerous ways to cut utility costs, especially cable. She suggested dropping your home phone and possibly dropping cable to replace it with a Wi-Fi streaming option. Cutting out cable entirely and using YouTube TV or Hulu could save you roughly $100 per month.
“Of course, eating in is always the best financial option,” Anamika Madan said. “When you look at your bank statement, you’ll likely notice that you spend far more at restaurants than you expected.”
Anamika Madan of Greenwich stated that the average American spends $3,459 per month eating at restaurants. This means you can budget a particular amount to spend eating out and save a substantial amount each month by eating at home.
Another major expense for many Americans is online subscription use. Anamika Madan explained that many Americans have online subscriptions they don’t use. She explained that these could be video streaming services, cloud storage, music services, dating apps, and more. Many times, these are frivolous unnecessary expenses.
“Incredibly, Americans spend roughly $10,000 each per year on transportation costs,” Animaka Madan said. “This is a huge part of your monthly budget, so get out your walking shoes, carpool, or use public transportation to save big.”
Anamika Madan explained that you may even want to go as far as purchasing a more affordable vehicle or one that is more fuel-efficient. She added that doing preventative maintenance is far more cost-effective than dealing with a vehicle emergency when it arises. Even steps as small as avoiding the use of air condition and driving slower can save a large amount of gas over the course of a month or year.
“The steps to cutting monthly expenses are easy if you’re diligent and creative,” Anamika Madan finished. “Take a hard look at your statements and always be open to small changes that can make a huge impact on your finances and your life.”
