Smart Ways to Cut Back on Monthly Expenses
When you’re feeling the financial pinch, it can seem like your money is spoken for before it even hits your account, and feeling out of control can be stressful.
When it comes to cutting monthly expenses, you might start to picture giving up even the smallest joys in your life. But it doesn’t have to be that way.
Whether you want to save a bit of extra money or you’re tackling challenging debts, the aim is to regain control by finding out where the “leaks” are in your spending and plugging the gaps.
In this article, we’ll walk through practical steps which may help you cut monthly expenses.
Reducing 'forgotten' monthly outgoings
If you want to cut back on monthly expenses, a quick fix might be to target anything you pay for without realising. Think ongoing subscriptions or free trials that have become a regular payment.
Challenge yourself to list every single subscription you pay for, from streaming services and gym memberships to apps on your phone. Small subscriptions can soon add up, so cancel any that you don’t use.
Next, look at your essential outgoings. Providers of mobile phone contracts, internet, TV and home energy have been known to hike prices for long-term customers. You shouldn’t be penalised for staying loyal.
Want to switch supplier? Start by looking for a cheaper price elsewhere. Then, call your current providers and ask for a better deal or tell them you’re thinking of switching. You could either get a hassle-free saving from your current provider, or you might be able to secure a better deal with another.
Spend smarter to cut monthly expenses
The next step is to look at your ‘active’ spending – the everyday, conscious choices you make. Finding ways to be more mindful and make those choices work for your budget is key here.
For example, if you often meet friends for an expensive meal, suggest alternatives like hosting at home or a picnic. This allows you to maintain your social life, which is crucial for your wellbeing, while finding less costly ways to enjoy time together.
Some expenditure, like food shopping, can be broken down into weekly chunks that might still help you cut down on monthly expenses.
Making a list and sticking to it may be an effective way to avoid impulse buys that add up. Check the ‘price per kilo or litre’ on shelf tags, not just the main item price. Even bulk-buying non-perishable essentials (like toiletries or cleaning supplies) when they are on sale can make a difference. It’s another strategic choice that could help you find value.
How to reduce bigger monthly outgoings
You can cancel subscriptions and shop smarter, but these small savings can feel insignificant if a large portion of your income is consumed by interest payments on credit cards, loans, or both.
Juggling multiple debts means you lose money to interest. What’s more, it often costs you the headspace to manage your finances effectively too. This can be the biggest barrier to regaining control.
Consolidating multiple high-interest payments into a single loan may be helpful. This could lower your monthly outgoings and simplify your life, freeing up cash to make daily spending more comfortable or boost your savings instead of servicing debt.
Consolidate debts to reduce your monthly outgoings
If your debts have started to erode your everyday funds, it’s time to seek help.
We offer debt consolidation loans designed to help turn multiple outgoings into one manageable repayment.
By consolidating existing borrowing, you may be extending the term of the debt and increasing the total amount you repay.
It’s easy to find out if this is right for you. Simply check your eligibility with us online today. If you’d rather discuss your unique financial situation directly, please reach out to our friendly team or visit our help and advice hub for more information.
Loans are subject to status and affordability checks.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debts secured on it.
Representative 21.54% APRC (Variable)
For a typical loan of £12,000 over 60 months with a variable interest rate of 21.54% per annum, your monthly repayments would be £310.60. This includes a Product Fee of £1,200.00 (10% of the loan amount) and a Lending Fee* of £763.00, bringing the total repayable amount to £18,635.80. Annual Interest Rates range between 8.6% to 27.87% (variable). Maximum 50.00% APRC. *Lending Fee varies by country: England & Wales £763, Scotland £1,051, Northern Ireland: £1,736.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
