Cutting Down on Month to Month Expenditures | Zizo Sifuba | Registered Financial Adviser | Succession Financial Planning | Cape Town

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Cutting Down on Month-to-month Expenditures

One of the most effective methods to do this is to reduce monthly spending. Even if some of the savings are insignificant on their own, the cumulative effect of several savings over time can be considerable.

The trick is finding the right areas to cut down on, the last thing we want to do is cancel a risk policy that serves as protection for when things go pear-shaped.

Many people look at entertainment as the first thing to cut when trying to trim costs, but they often forget to look at the month-to-month expenditures. Here are some things to consider that you may have overlooked before.

Finding ways to spend less money is one of the most difficult aspects of personal finance

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Memberships

Examine outgoings such as gym memberships and memberships to local sports clubs. Has COVID-19 had an impact on how frequently you use these memberships? If you go to the gym less than once a week, you may not be getting the most out of this expense. If you're on the fence about a membership, cancel it and see if you miss it.

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Data contracts

Data is expensive. Having a stockpile of data when you are always on Wi-Fi is unnecessary. And if you aren’t on Wi-Fi, buying bulk data is usually cheaper than regularly topping up. Find the right amount of monthly data that suits your needs and trim the rest.

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Streaming services

With the multitude of streaming services available to us, it is not uncommon for people to be subscribed to more than one service at a time. Take a look at which services you use most and cancel the lesser subscription, or maybe you are on a premium package that you can downgrade to standard. (This includes music and video streaming services.)

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Print media subscriptions

If you get a magazine or newspaper in the mail but don’t find the time to read it, cancel the subscription. An unread subscription is doing nothing more than gathering dust. There are plenty of media channels that you can read online for free.

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Eating out

Going to restaurants can be a treat. We don’t want to tell you that you can’t treat yourself, but if you do plan on going out there are always places offering enticing specials. Look for the ‘kids eat free’, ‘2-for-1’, ‘half-price Thursdays’, and so forth.

How you work with your money is intrinsically linked to how you live your life; so too is the heart of successful financial planning.

Our money is only as effective if we use it with intention and purpose – and this is why financial planning is so important.

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