When
you are trying to become more financially free and independent, you
first need to take a closer look at your existing expenses and the
ways in which you can reduce these. And a good place to start is with
life’s most costly items, which we will talk about as the ‘big
three’. These are housing, transportation and food. In the average
household budget, these things have been shown to take up 60% or more
of your monthly outgoings. So, we will look to tackle these expenses
one-by-one with a few different suggestions of exactly what you can
do about each of them.
The
Roof Over Your Head

Housing costs depend very much on where you choose to make your home. If you
live in the heart of a major city and you are finding that your
housing expenses are simply too much to bear, you should consider
moving out to the suburbs. With ever-improving transportation links,
you may not even find that you are as far away as you initially
thought. The decision to rent or buy is also a challenging one. While
some people will say it is just throwing money away, many of us are
choosing not to settle in a single area for our entire lives and
renting gives you that flexibility to move at the drop of a hat.
However, when you become settled in an area, buying a place is likely
to be the better choice.
When
you are searching for a place to buy, focus on what you need rather
than what the bank says you can afford. You should be looking for a
place that is safe, functional, and modest. If you are a single
person with a four-bedroom house, this is a lot of space that is
simply going to waste. If you are looking for a good rule of thumb to
follow, the ⅓ one usually stands up well. Essentially, this states
that you should be spending no more than a third of your post-tax
income on your housing expenditures.
Your
Pride and Joy (Car)

While
many people dream about driving an expensive car around, don’t be
fooled into shelling out more than you can afford. Remember, if you
can’t afford to buy the car with cash, you can’t afford to buy
that car at all. When you do buy a car, instead of upgrading every
couple of years to the latest hot model, you should look to maintain
your vehicle in a good condition for the longest possible time. Learn
some basic techniques and follow your manual if you are not sure.
And, as you are probably already well-aware, buying a new car is one
of the biggest wastes of money out there. Instead, you should look to
the used market to snag yourself a great deal.
Ask
yourself whether or not your household really needs two cars.
Remember, every additional vehicle is going to cost you more in tax,
insurance, maintenance etc. Speaking of insurance, you should always
look to find the cheapest car insurance every year. Thankfully,
comparison websites have made this easier than ever to do.
Filling
Your Plate
The
quickest way to spend your food budget is by eating out for dinner.
While there is nothing wrong with treating yourself from time to
time, you can often end up spending the equivalent of a week’s
worth of groceries when you eat at a restaurant. You need to make a
household food budget and factor this in. Even turning a single one
of your take-out nights into a cooking night can make all the
difference.
Cooking
night https://www.thesimpledollar.com/20-favorite-dirt-cheap-meals/
One
of the key reasons why people don’t prepare their own meals on a
regular basis is that they don’t have the time and energy to do so.
However, with some simple meal prep on a Sunday night, you can save
yourself a lot of time during the course of the week. When you are
cooking, why not up the number of ingredients? This way, you can
freeze some for future lunches, dinner etc.

If
you really want to reduce your household budget, the best way of
doing so is going to be focusing on the three categories that we have
discussed. Even the small savings all add up to make a noticeable
difference over time. Essentially, it all comes back to limiting
housing to what you need (not what you want), buying and maintaining
a modest car, limiting eating out and preparing your own food.
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