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How to Reduce Expenses and Save Money


Reducing expenses is one half of the equation for building your savings account. (The other half is increasing income.) And while reducing expenses can be easier than finding new sources of income, that doesn't mean it's easy. But below are several practical strategies to reduce expenses so you can save money.

Shop Around/Cut Back

Reducing expenses obviously means spending less. That can be spending less on everyday purchases. This kind of belt-tightening means saving money on groceries, clothes and other necessities or cutting back on luxuries like dining out, vacations or daily lattes. This is on ongoing process and something of a lifestyle change. Use these resources to help you cut back:

More Money Saving Tips

Cut Monthly Expenses

A quick way to start reducing expenses is to methodically review your monthly ongoing expenses. For example, switch to a cheaper cable package or change Internet carriers. It might only be a small savings at first, but if you review all your monthly expenses those savings will add up. Read these articles to learn more about how to cut the big expenses:

Avoid or Reduce Debt

Avoiding or reducing debt will reduce interest expenses, and free up cash for you to save. Save in advance for big expenses that you can anticipate, rather than incurring debt. This might be a new car or your holiday expenses. Avoid using credit cards for purchases when possible. Plus try these ideas:

Work From Home

Working from home not only increases income but it also decreases expenses like commuting and, often, child care. And just as with as with the money you save on cable or other monthly household expenses, try to put some of that unspent money in the bank. Click on these resources for more info on working at home:

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