The “Necessary Expenses” That Aren’t as Necessary as You Think
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The “Necessary Expenses” That Aren’t as Necessary as You Think

If you’ve ever budgeted before (if you haven’t, you really should!) then you’ve probably heard of the term “necessary expenses”. It’s a term used to describe expenses that, in your eyes, are 100% required. This can include your rent, it can include insurance payments and it might even include entertainment. It’s usually a fixed cost that we stick with, but did you know that necessary payments might not be as necessary as you think?



In this article, we’re going to help you save money by helping you realize that those regular expenses you’re paying for can be lowered or, in some cases, completely removed.

The “Necessary Expenses” That Aren’t as Necessary as You Think

Entertainment Bills

Entertainment can include anything from paying for your cable television subscription to the money you spend on going to the cinema. Entertainment can generally include anything that you consider “having fun”, and enjoying yourself is often the best way to unwind and relax especially after a stressful week at work. However, you need to consider how necessary these expenses are and how you can cut down on them.

For example, if you think that your subscription to cable TV is expensive, then consider a video-on-demand service instead. If you think that you’re spending too much on going out with friends and family, then think about staying in for the night instead and spending your time at home watching a film or playing a game together.

Insurance Costs

Insurance is another area where costs are usually considered mandatory and non-flexible. However, thanks to comparison sites like GoCompare, you can find much better deals that will help you save money in the long run. Whether it’s car insurance, home insurance or something pricier, make sure you look at comparison sites and renew your quote manually so that your insurance company doesn’t take unnecessary amounts of cash from your bank account.

Self-Employment Costs

Self-employment isn’t a situation that everyone finds themselves in, so we’ll keep this section brief. Managing your own finances can be difficult when you’re self-employed, so we’d recommend switching to cloud services when possible. For instance, if you’re hiring an accountant to help you with your finances, then consider a cloud accounting service instead. Similarly, if you feel like you’re spending too much on employees, then consider outsourcing future work instead.

Utility Costs

Lastly, let’s cover utility costs. Everything from using too much energy to leaving the heater on all the time can ultimately affect your utility bills and you’ll be surprised at how much money you’ll bleed because of it. Even leaving your phone or laptop on standby instead of shutting it off completely can make it draw power from an outlet, and you’ll eventually feel those effects on your utility bill statement.

Cut down the use of your utilities if possible. Remember to turn off the lights when they’re not in use, turn off devices instead of using standby and look for ways to heat up your home that don’t involve using your gas. It sounds small, but the savings will quickly add up.

This is a collaborative post. 

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The “Necessary Expenses” That Aren’t as Necessary as You Think

This article has 17 comments

  1. Candy

    All good advice. All starts with a budget. Read your bills just don’t pay them. Do your homework.

  2. Amber Myers

    This is important to keep in mind! I always try to watch our spending. A budget is so important. I don’t understand the people that just throw money everywhere.

  3. Jeanette

    I am the budgeter in our family! I know exactly how much money we have and every account. You definitely can find ways to save money even on the stuff that is mandatory. These are some great tips.

  4. Chubskulit Rose

    These are great tips that we could all learn from to save money. We cut our cable services this year and I’m happy to say that we don’t miss it one bit.

  5. Melissa Chapman

    I recently had an added charge to my insurance and now we are spending so much so I would like to go on that site to comparison shop. I wish I could lower my heating bill too.

  6. Jenn

    Yes, you are correct. Ebery year I take a hard look at where our money is going and I trim the budget a bit.

  7. valmg @ Mom Knows It All

    I call “optional services” (all but natural gas and electric) at least twice a year to be sure I’m in the most appropriate package. I consider natural gas and electric very necessary utilities.

  8. Teresa

    I think the costs for insurance are pretty much the same. We have shopped around a bit and the costs are all very similar, it’s more of a headache to call and get quotes from various companies, so we just stick with the same one .

  9. Farrah Less

    It’s a good idea to have set aside savings in case of emergency. Cutting expenses is hard but its worth it. We don’t have cable for 6 years now , and we are ok with it. I guess as long as you have internet and a computer you can still do things and watch shows even on a replay.

  10. Jenn@Engineermommy

    You have some really great tips here that I know many of us don’t follow. I try to do some of these things like turning off the lights when leaving the room, but it’s good to remember to find creative ways to trim the fat on even “necessary” costs.

  11. lisalisa

    This is such a great post! I never thought to budget to be honest until my husband job was eliminated. Since that has happen we have learn to budget very well and it really helps and makes a big difference also. I’ve even made changes with using energy saving night lights and I cut off everything in my home to cut back on energy bill.

  12. Emily

    This is a great list of expenses that can be cut down! With kids I feel like the unexpected but necessary costs add up quick. So managing some of these would help out a ton.

  13. Angela Ricardo

    I totally agree on insurance cost because we were just discussing all the options recently and found done policies to be absurd. Thank you for all these tips! Very informative.

  14. Vyjay Rao

    These are some practical tips. It is so necessary to have a budget and know where your money is coming from and where it is going. This helps in controlling it.

  15. Kita Bryant

    There really are plenty of places to cut in my budget. I have things pretty covered for now!

  16. Marysa

    There are so many ways to save, and these are great examples. I am always surprised when people say they have no money, but they are spending tons of money on things like movies or other things they could really be saving on. Thanks for the tips!

  17. Mellissa

    This post is the perfect reminder that its probably time for me to go through and slim down my budget and get rid of some of the “necessary expenses”.

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