Have you been using your credit cards almost to their limits? Do you feel that you are going overboard with your expenditure? Are you making too many impulse purchases? Are you being wasteful and profligate? Do you feel that you need to pull back the reins or risk turning yourself into a defaulter or worse still risk seeing a day when you have to declare yourself bankrupt?
If the answer to any of the above questions is affirmative, you will have to review your financial condition. Are you spending in accordance with your income? If not, you are inviting trouble. Today, getting credit cards have become easy and banks also encourage their customers to spend more. So, they often increase the credit card limit. Sometimes, people forget to tally their income and expenditure or make plans as to how they would pay off the loans when the time comes.
Monthly expenditure reduction methods
- Reduction on Energy Bills: In a vast country like Canada, which has been different seasons and weather conditions, the energy requirements are also variegated. One of the biggest sources of wastage and going overboard with expenditure is this particular aspect of utility expenditure. Most don’t pay any heed to their energy bills thinking it to be a necessity. While the fact that it is indeed one of the most necessary household items can’t be contested, it is also true that wastage can be checked and the billed amount can be reduced.
- Turn off HVAC when not in use: You and your family members will have to make sure that you remember to turn off the heating or cooling unit in a room when they are not needed or no one is in the room. This would automatically lower quite a few units. You may also install a smart thermostat that can regulate the temperature as well as the turning on or off automatically.
- Air seal the house: Make sure to air seal your house. A lot of air (cool during summer and warm during winter) escapes from your home and that pushes up your utility bills because your cooling and heating units are forced to work below the optimal level and hence lose efficiency and use up more energy. An air sealed house can stop the air from escaping easily.
- Use LEDs: Switch to LED lights from halogens and incandescent. Even if you use recessed LED lights, the expenditure would be lower and the durability would be higher. This means the ROI would be phenomenal.
- Water heater: Make sure to set the water heater and room heater at the right temperature so that they function at an optimum. Don’t heat the water more than necessary. This can help to curb a significant amount of energy wastage.
- Smart devices and power strips: Use smart devices and power strips which can proactively turn off devices when not in use. That would also save quite a bit of energy and reduce billing amounts.
- Use public transport or bikes: If possible, avail public transport as much as possible. It has multiple advantages like reducing pollution, total energy bills of the nation and also your own bills. Better still if you can use a bicycle to travel between your home and work. It would also keep you physically fit.
- Time to check your brand fascination: Try to buy unbranded items and products whenever you can. Often, you don’t realize that you run huge bills on buying things which you can live without. You don’t have to live an austere life like an ascetic but you can definitely reduce consumerism.
- Eat fresh and live healthy: The medical expenses that you incur probably take up a lion’s share of the total expenditure pie. A lot of the health problems are due to unhealthy food habits. You need to be more proactive. Make a lifestyle change, if necessary. Reduce carbs and fat without starving yourself. Stop eating packaged food. Start eating fresh. Stop eating out. A lot of diseases would happily stay away from you!
- Reduce cell phone bills: Sometimes, people use higher talk time and data plan even when they don’t need it. While there are still others, who end up going over the limit. Reduce this habit. Start calling friends and relatives in person rather than talking to them on the phone for hours.
You will have to plan meticulously in order to increase your savings. But, it is not at all difficult if you can show a single minded devotion. Try it. Your life would really change for the better.