I think it’s a good idea to clean house and get rid of junk occasionally. It’s amazing how we accumulate over time. I think the same can be done with our finances. Here are some ways I clean out the junk, or cut unnecessary expenses:
1. Review subscriptions
It’s super easy to subscribe to memberships and subscriptions. I just ask if it’s something that is adding value to my life. Is there an ROI? If not, it’s gone.
2. Remove habits
One habit for me can be buying coffee. I often buy a coffee when meeting someone at Starbucks or when I’m out and about. This adds up depending on how many coffees I buy per week. So it’s a matter of evaluating where I have created these habits and changing them when they seem to be getting out of control.
3. Budgeting
The last way I cut unnecessary expenses is by updating our budget every month. My wife and I give every dollar a job so that eliminates most random purchases. There is an amount set aside for eating out, coffee, etc. and when it’s gone, we have to make a conscious decision to move money from another category (give something up) or stop spending. Our budget helps us stay on track towards our financial goals.
What are your thoughts? Comment below!