How to cut down expenses?

Here are several strategies Brad Barrett recommends for cutting down expenses:

1. Evaluate and Cancel Unused Services: Many people accumulate subscriptions they no longer use. By auditing recurring monthly expenses and canceling unnecessary services, you can save significantly 1.

2. Reduce Utility Costs: Simple changes like shorter showers and turning off unused lights can help lower utility bills. Reassess how much you're using and make adjustments where possible 2.

3. Shop Around for Better Rates: For bills like cell phone plans and insurance, there are often lower-cost alternatives. Switch to cheaper plans or negotiate better deals 3.

   • 

     1

     Expense Audit Insights

     00:39:52
     
   • 

     2

     Budgeting Categories Explained

     00:20:38
     
   • 

     3

     Cutting Costs Wisely

     00:14:27
     
   • 

     4

     Financial Freedom Insights

     01:16:28
     
   • 

     5

     Budgeting for Success

     00:31:17
     

4. Cut Down on Entertainment Expenses: Consider eliminating cable and opting for cheaper alternatives like Hulu, Netflix, or Amazon Prime. Examine memberships, such as gyms, and determine if there's a lower-cost option (or if you can eliminate these entirely) 3.

5. Food and Dining: Reduce dining out and focus on meal planning to cut down on the food budget. Even saving on groceries by eliminating convenience foods can add up 4.

6. Refinance and Drop PMI: If you own a home, check if you can refinance your mortgage or get rid of private mortgage insurance (PMI). With house appreciation, you might be able to re-evaluate your mortgage to drop PMI, potentially saving $100-$200 a month 5.

7. Distinguish Needs vs. Wants: Clearly differentiate between your essential needs and discretionary wants. This approach allows you to make more intentional decisions on cutbacks without feeling deprived 1.

Implementing these strategies can help reduce monthly expenses without significantly impacting your quality of life. Always ensure these changes align with your broader financial goals.