Updated: Feb 14
Managing your personal finance is more important than ever. The biggest challenge is figuring ways to spend less. One effective way to spend less is to cut down on household expenses. Though some of your household expenses may seem insignificant their cumulative effect can significantly drain your income. Managing a household is a big deal and some of the cost may appear unavoidable. Yet, there are simple and effective ways you can cut down on your monthly household expenses and save for
your goals such as acquiring a new property or saving for your retirement.
Here are practical and simple tips on ways to save on household expenses in 2021.
Install LED light bulbs
Light-emitting Diode (LED) bulbs are four times more energy efficient than incandescent, halogen and compact fluorescent light bulbs. LED bulbs use energy more efficiently than other bulbs. A study by the Consumer Federation of America found that the average American household could save about $1,000 over a ten year period by switching to LEDs. LED bulbs also last longer than other types of bulb which is another cost saving advantage over it’s outdated incandescent, halogen and compact fluorescent light bulbs.
Updating the lightbulbs in your home can save you up to $40 a year on your electric bill.
Disconnect unused electric devices
Do you know the energy cost of plugged-in unused appliances can add up, and unplugging these unused devices can save you up to $200 a year? Even when turned off, your electronics devices keep drawing small amounts of electricity called “phantom charge”. The same goes to your mobile phone chargers. Whether you are charging your phone or not, the charger keeps using power.
Also remember to turn off lights when they are not in use, turn down the temperature on your hot water heater - the water heater is a major source of energy drain, install a smart thermostat, and set it to run less when no one is at home. All these will save you hundreds of dollars on your energy bills.
According to Forbes, it is almost five times more expensive to order delivery from a restaurant than it is to cook at home. Examine how much it would cost to buy the ingredients of a meal you order frequently as groceries for home cooking. Woah! Way cheaper than the cost, right? Cooking at home also comes with other benefits such as avoiding allergies, eating healthier, and eating at reasonable proportions.
Consider cooking at home to cut down on your monthly expenses, it saves you money and makes you healthier.
Examine your subscriptions
Examine your monthly subscriptions, see where your money is going. Are you paying for subscriptions you don’t need? Do you need unlimited internet? Whatever your unnecessary subscription is, cut it down to save money. Subscribe as you need, there’s nothing wrong in unsubscribing, re-subscribing and unsubscribe. Rotate your subscription as you need.
Before you go shopping, check if you have a coupon! Always keep your coupons in a convenient location such as a purse or wallet. Use coupons with sales offers. It is great to save 50 cents on that $3.99 container of sour cream, but it’s even better to buy the sour cream when it’s on sale for $1.99 and get an extra 50 cents off.
Cutting down your household expenses has to do with your mindset. You must pay attention to details and keep a thorough record of your household spendings.