No matter what your living arrangements are, running a household can be expensive. Whether you own your home or are renting, you’ll want to do everything you can to reduce your outgoings and slash your budget. By doing so, you can allocate more of your income towards the things you enjoy and save for the future. With this in mind, take a look at these five ways you can cut your household costs:
1. Monitor Your Expenditure
Most people think they know roughly how much they spend every month but, in reality, it’s hard to successfully ‘guesstimate’ what your expenses are. If you don’t keep track, there’s a good chance you’re underestimating how much you really spend, which could be why your budget never seems to stretch as far as it should.
Make a note every time you spend anything, whether it’s £1, £10 or £100. Over time, you’ll see how quickly the seemingly minor costs add up to a more significant amount. As well as helping you to see how much your lifestyle really costs, jotting down every expense will allow you to see exactly where your money goes and where you can make savings.
2. Compare Insurance Providers
Most people have a range of active insurance policies, such as car insurance, home insurance, health insurance or even mobile phone insurance. While having the right insurance cover and add-ons can save you money in the long-term, you could be spending more than you need to. If you let policies auto-renew, for example, the price will increase steadily every year. By actively seeking out better offers, however, you can save hundreds, or even thousands, a year.
Take a look at when your insurance policies are due to run out and begin getting quotes as early as you can. A home insurance comparison search on Quotezone, for example, only takes a few seconds and enables you to access multiple quotes at the same time. Whether you’re looking for a home insurance comparison, tenant’s insurance, contents insurance or renter’s insurance, Quotezone delivers unbiased quotes from more than 50 providers.
3. Share Subscription Services
Home entertainment has changed in recent years and it’s now easier than ever to access a wide range of content via subscription services. However, signing up to multiple services can take up a considerable amount of your budget. Reviewing your memberships and cancelling the ones you no longer want or use will immediately reduce your costs, but there are other ways to minimise your expenditure too.
Most subscription providers offer a range of membership options. A single user subscription might cost £9.99, for example, whereas a multi-person subscription could cost £14.99. By joining forces with friends and family to take advantage of multi-person subscription packages, you can split the cost and pay less per person. Just check whether there are any limits on how you use the service and you’re good to go!
4. Pay Off Debt
Most people have some form of debt, whether it’s a credit card, overdraft or loan. However, being in debt can be expensive. When you’re subject to high interest rates, the majority of your monthly payments could be covering this cost, rather than actually paying off your debt. In fact, you may see the amount you owe actually increasing due to high interest rates, even when you’re making regular payments.
Paying off your debt as quickly as you can is one way of avoiding this extra expenditure. In the meantime, you could talk to your lenders about reducing your interest rate, transfer balances to a different provider or consolidate your debts into one loan. With plenty of options available, reassessing your financial situation, getting independent advice and making changes to your financial arrangements can help you to save a considerable amount every month.
5. Start Batch Cooking
If your grocery bills are getting out of hand, batch cooking can be a great solution. When you’re prepping meals in advance, it’s easy to keep track of the products and ingredients you’ll need. This means you’re less likely to go ‘off-list’ and purchase unnecessary extras when you’re at the supermarket. As well as helping to cut your household expenditure, batch cooking can also be a great way to practice your culinary skills and embrace healthier eating habits.
Keep Track of Your Budget
If you don’t already have a household budget in place, it’s time to create one. Detailing your income and expenditure is the easiest way to manage your money and achieve your financial goals. Whether you make a note of figures by hand, create a spreadsheet, or use budgeting apps, find a way of budgeting that’s easy for you to sustain. Once you get in the habit of budgeting, you’ll be amazed at how much you’re able to cut your costs and reduce your household