How To Cut Cost of Living And Household Expenses Right Away

I know it is hard to cut cost of living if you are not used to live frugally

But if you are serious about how to cut household expenses

Let me tell you it is never too late

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You can start today by learning from the below tips

Remember no matter how many tips you read, you have to try few of them

cut cost of living

But if you try one or two tips at a time you will get used to it

I know it will be hard to try all of them at once

Those sacrifices which you make won't be sacrifices in the long run

It is similar to reducing my four spoons of sugar I used to add to my coffee

It was hard to go right away to half spoon but I took it gradually

Anyway let me start with the following

Use a family budget

Regardless of all the other tips, this is the master tip of all

If you can practice this one then you will be able to cut cost of living dramatically

But why? because if you create a family budget then you will be able to look at all expenses

Just by looking at all expenses you will be able to analyze where you can start saving

Get out of debt

Getting out of debt is not going to cut cost of living only

It will relief you from the stress and many nights of losing your sleep

I cannot explain how great you will feel when you manage to get out of debt

Buy generic brands

If you are serious about cutting cost of living then start with non brands products

Not only for non brands groceries but for everything

I started to ignore buying non brands apparel, electronics and all other things

Use a jar for your spare change

To be fair, this tip is not about saving a lot per month

It is about being organised

I wrote a previous post about doing the penny challenge

Read it and see how much you will save annually

Don't be fooled by any sales

I was at Costco when I saw a winter jacket on sale

It was very cheap and that jacket was really good

I was hesitant but I had to think about it

Unfortunately we buy so many things we don’t need because they go on sales

If you buy what you need on sale that would be grrat

A tip for you, always buy off season

Choose affordable rent or mortgage amount

I know it will be a surprise to you if I ask you the below

What is the percentage of your rent to your income?

I bet you would be able to answer this unless you checked it before

Below is an example of using my budget sheet which you can open in excel or free open source sheet

Below mortgage is 1960 and it is 27.62% to your income

how to budget by calculating percentages of expenses per income
I am using hypothetical numbers not really representing my family income

Good news is if you use my budget sheet in my products page you will be able to calculate all the percentages for all expenses

Use coupons and cash back apps

It is really bad to buy something and discover later that it was on sale with a coupon

Nowadays there are so many apps to help you not to miss these offers

For the cash back app, I love Rakuten, Mr Rebates and MyPoints

Plan your meals with shopping list

I always say you can save money on grocery by using shopping list

You don't have to use a sheet of paper for your shopping list

With AnyList mobile app you can type your grocery items

This is the app I use as it integrates with Amazon Alexa

I love it because if I ran out of grocery item or I remember something to buy

I call Alexa and ask her to add it to my shopping list and it will be there on the app

Use your leftover dinner for lunch at work

To be fair when I was single I used to buy lunch at work

On average it costs me around $10 and that's around $240 a month

Nowadays I am taking my leftover dinner to eat as my lunch next day

It is up to you but you can cut cost of living a lot by eating left over dinner for lunch

Cut alcohols and soft drinks

I should say reduce alcohols and cut soft drinks

To be realistic I drink alcohols on special occasions

But there is a bid difference between consuming alcohol every day and only when you are inviting friends and family to your house

Think about it when it comes to soft drinks it is not healthy

Practice replacing your soft drinks with natural juice you make it at home

Join wholesale club membership

Although wholesale club memberships cost you money to join

But it saves you money in the long term

There are so many products there cheaper than all grocery stores

Anyway I recommend to check your annual purchases and check your total spending

I upgraded my membership to $120 per year and this saved me money

Why? I used to pay $60 with no cash back then I upgraded and paid $120

By doing that I collected $101 cash back so my membership costs me $19

Reduce dinning out to special occasions only

I am not against dinning out, I keep it to the minimum

I recommend living frugally but not living stingily

Find cheap gas stations

I have a gas station near my home cheaper with at least 4 cents

Anyway for anyone who is not aware of a cheap gas station in your area

I recommend to install GasBuddy app on you mobile

You can use GetUpside to collect 25 cents on every gas fill up

Also you can fill up gas from wholesale club membership when possible

Know your wants and needs

Your need is anything that keeps you alive like paying for your shelter or your drugs

Your want is buying a new scooter or replacing your car because you're bored of it

Cut cable and replace it with IPTV

I will not ask you to cut cable and not watch TV

I recommend to invest in IPTV where you can pay $30 a year

Not only you will save money but you will be watching a vast range of channels

Cut cost of living by giving up your home phone

I am a true believer of using VOIP (Voice Over IP) phone

The amount of money you save is great

If you decide to use cell phone only that's a good decision too

Buy used items instead of taking a loan

From my previous experience I was paying $530 for a car loan

This was in the past, nowadays I buy a reliable used cars without any loans

Not only for cars but for electronics you can buy refurbished TV

Or you can even buy used items from Facebook Marketplace

Save fund for your gifts and parties

Birthdays and all special occasions like Thanksgiving and Christmas are not a surprise

Wise families plan for them like keeping your store gift cards in a drawer to buy gifts for birthdays

You can also plan for it in your budget

Michael launched Wealth of Geeks to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.