In today’s economic climate, living within your means and staying out of debt can sometimes feel challenging. With high interest rates and the rising costs of goods, making your money stretch from paycheck to paycheck can be harder than it was a few years ago. Fortunately, with minor lifestyle tweaks and commitment, you can keep yourself from going in the red each month and set yourself up for financial success. Here are a few budget areas to consider trimming back on to help you alleviate financial stress.

1. Digital Entertainment
Although cable and streaming services may seem essential, small changes can be made to reduce costs. Ask yourself: How many services are you currently paying for? Can you cancel one or more of the services you are not utilizing frequently? Can you call your provider to negotiate a better deal? Are there cheaper alternatives with other service providers?

While Wi-Fi is a non-negotiable bill for many of us, there are ways to limit how much you pay for it. Consider bundling your internet with another service if it offers cost savings, or ask your provider if they have any promotions that can help lower your bill.

2. Utilities
Electricity costs can be one of the largest household expenses, but there are ways to lower your usage and costs. Many providers charge more during peak hours, which are typically mid-afternoon throughout the early evening. Consider using large appliances during non-peak times when the cost of electricity is lower to reduce the cost of running your dishwasher, washer, dryer, etc. Unplug devices such as computers and televisions when not in use as they can add to your energy bill. Review your electric bill to identify peak hours and reduce your costs. You may also want to consider opting for energy efficient appliances to save on cost per use.

3. Debt
Carrying debt can create major challenges when it comes to staying on budget. If you have debt with high interest rates, look into consolidating debt to a lower interest rate credit card. One payment is often more manageable than multiple, and certain credit cards offer 0% interest for a short period of time. Don’t ignore balance transfer fees, which might also add to this debt and reduce long-term savings. Personal loans on average have lower interest rates than credit cards and can be another money saving option. Spend time doing research to see which option will save you the most over time. Prioritize paying down your debts to save on the monthly interest. Consider bi-weekly payments to save on interest as you are paying down debt sooner.

4. Insurance
If you own a vehicle, insurance coverage is required, however, there are some cost saving changes you can make to help insurance be a bit more affordable. Increasing deductibles from $500 to $1,000 could mean big savings. Bundling different types of insurance with one company usually provides additional discounts for multiple cars and multiple lines of insurance as well.  

5. Storage
If you have been paying for a storage unit holding household items, it may be time to sort through the items to determine if you still need them. If you’re ready to let go, you may also find yourself letting go of this expense from your monthly budget. You could also take this opportunity to boost your income by selling the items that you had in the storage unit.

Cutting expenses can be challenging and often requires strategic decisions to be made. However, those changes will help keep you on track with reaching your saving goals and reducing debt. Implementing one or more changes can greatly reduce unnecessary household costs. Review these tips on cutting down expenses so it can help you can concentrate on building wealth instead of spending.

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