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.
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 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 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.
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.