So You Need to Cut Your Family Expenses

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Reducing your expenditure is a savvy way to improve your financial situation, get out of debt or increasing your savings contributions. While most people assume that they’re already spending as little as possible, it can be surprisingly easy to reduce your outgoings. To get started, take a look at these four ways to cut your family expenses now:

Review Subscriptions and Memberships

Now that so many products and services are sold via subscriptions, it’s easy to forget what you’ve signed up to and when. Take a look at your bank statements over the last few months and highlight all of the subscriptions you’ve got. If you no longer need or use them, check whether you can cancel them without incurring any additional fees.

For those that you do want to keep, make sure you’re funding them in the most economical way. A family subscription can be significantly cheaper than individual membership, for example. 

Take Out Family Insurance Policies

If you own a car, taking out insurance is non-negotiable, but you don’t have to spend over the odds to keep your car on the road. For families with more than one vehicle, a multi-car policy can be an effective way to reduce the cost of your premiums and get cheap car insurance . The cost of insurance can be particularly expensive for young or inexperienced drivers, so bear this in mind if you’ve got teens who are eager to get behind the wheel. By taking out insurance in your own name and adding them as a driver, you can make substantial savings.

Pay Off High-Interest Debts

Low-interest debts, like a mortgage, can be fairly easy to manage, particularly if you benefit from a fixed interest rate. However, high-interest debts, such as credit cards or payday loans, can quickly get out of hand. If you’re making minimum monthly payments, the amount you owe could actually be increasing every month, rather than going down. 

To prevent this, aim to pay off high-interest debts as quickly as possible. While this might increase your outgoings for a short time, you’ll pay less in the long term and reduce your expenses for the future. 

Have Fun at Home

If a significant proportion of your budget goes on activities and entertainment, think of new ways to keep yourself and the kids occupied and save money. Having friends to visit can be a low-cost way to have fun, for example, while virtual parties and gaming sessions don’t require any additional expenditure. If you do decide to have a day out, book in advance and look out for money-saving coupons and vouchers.

Make Your Finances a Top Priority

Money management is an essential skill for every family, so don’t hide your financial planning from your kids. Instead, teach them the importance of budgeting and let them see what effective financial management looks like in the real world. While you don’t have to live frugally in order to save money, making minor lifestyle changes and prioritizing money management can have a dramatic impact on your financial situation.