How to Cut Down on Monthly Recurring Expenses

Let’s be honest, it’s easy to let monthly bills slip your mind – or worse, just accept them as an inevitable part of life. But what if I told you there were real, tangible steps you could take to significantly reduce the amount you’re paying each month? It’s not about drastic lifestyle changes (though those can help!), it’s about being smart, proactive, and a little bit ruthless with your spending.

December 28th, 2023 – It’s that time of year when many of us are reviewing our finances and looking for ways to get a little ahead. And if you’re staring at a stack of bills that seems to be growing faster than your income, you’re not alone. Let's tackle this head-on.

1. Know Where Your Money is Going

Seriously, this is the most important step. You can't cut down on what you don't know.

Track Your Spending: Use a budgeting app (Mint, YNAB, PocketGuard are popular options), a spreadsheet, or even just a notebook to meticulously track every expense for at least a month. This will reveal exactly where your money is going.
Categorize Your Expenses: Separate your expenses into categories – subscriptions, internet, utilities, entertainment, etc.

2. Identify the ‘Leaky Bucket’ – Those Unnecessary Subscriptions

This is usually where the biggest savings can be found. Be honest with yourself!

Streaming Services: Do you really watch every show on Netflix, Hulu, and Disney+? Consider downgrading or cancelling services you rarely use.
Gym Memberships: If you haven’t been to the gym in a month or two, it's probably time to cancel.
Software Subscriptions: Many businesses and individuals subscribe to software they don't fully utilize. Shop around for alternatives or free trials.
Mobile Apps: Are you paying for apps you rarely use?

3. Negotiate, Negotiate, Negotiate

Don’t be afraid to talk to your service providers!

Internet & Cable: Call your provider and ask for a better rate. Mention competitor pricing. Often, they’ll offer a promotional discount to keep you as a customer.
Insurance: Shop around for quotes from different insurance companies – auto, home, life.
Cell Phone: Review your plan and see if you can downgrade to a cheaper option.

4. Small Changes, Big Impact

Lower Your Thermostat: A few degrees can make a noticeable difference in your energy bill.
Energy-Efficient Bulbs: Switching to LED bulbs is a simple and effective way to reduce your electricity consumption.
Meal Prep: Cooking at home is generally cheaper than eating out.

5. Review Regularly

Cutting down on recurring expenses isn’t a one-time task. Make it a habit to regularly review your subscriptions, bills, and spending habits. Even small changes, implemented consistently, can add up to significant savings over time.

Do you have any specific recurring expenses you’ve found ways to cut down on?