Experts share tips for reducing expenses - AL.com

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With layoffs, wage cuts and furloughs affecting millions across the country, it’s time to go into “conserve mode” as financial expert Chris Hogan calls it.

This means saving both money and resources, and it doesn’t require grand gestures. It’s more about slimming down than cutting out.

“There are so many little cost saving methods that, once you take them, can really add up,” Hogan said.

Dr. Lonnie Strickland, who teaches a course at the University of Alabama called “How to Make 5 Million Dollars,” also said that little things like turning out the lights can make a huge difference. Oftentimes, people have unrealistic expectations when they create their budgets and write in large cuts that are hard to actually implement. In reality, saving money is about having discipline in your everyday life.

People should start trying to save early on, Strickland said, because it’s much easier to raise your standard of living than to lower it. After a while, it becomes a habit and gets easier.

Here are some easy ways to help your expenses to drop:

Take a close look at your pantry

Hogan has found that food is the category he easily overspends in, whether it’s through eating out or buying things he doesn’t need. Now, he’s suggesting people go through their pantries and freezers to see what food they already have, so they don’t spend money buying even more at the store.

“Some people have a can of lima beans that’s moved around with them 10 times,” Hogan said.

Once you are ready to go to the store, meal planning is helpful in keeping down the grocery bill and reducing waste, Hogan said. Click here for advice from dietitians on how to spend less money while still eating healthy, how to meal plan, and how to take the stress out of eating.

Eating out also tends to be more expensive. By avoiding pre prepared foods and mixing in frozen and canned goods, making food at home can help cut costs.

It’s ok to have fun sometimes, Strickland said, but ask yourself, do you really need that $80 bottle of wine or is there a cheaper option you can enjoy? Brand names in grocery stores often cost more while generic brands can be just as good.

Be efficient with your resources

Cutting out minutes in the shower or how long the lights are on can really add up, both Hogan and Strickland confirmed.

If you can afford to go get more energy-efficient appliances, that can also help lower the power bill at the end of the month, Strickland said. He and his wife have been using LED lightbulbs that burn just as bright while using less wattage.

Check your subscriptions

From Netflix to Orange Theory, there are so many subscriptions that take money out of accounts every single month. Are you aware of everything you’re subscribed to and are they all necessary?

The answer will vary from person to person. While Netflix might be essential right now with so much time inside, is Hulu also important? Which services do you use the most? And if you use a lot of streaming services, is cable still important?

If you can cut cable, do it, Strickland said. Both cable television and landlines can cost a lot of money. Your streaming services, meanwhile, can be shared costs, Hogan said, if you get a friend or family member on board.

There are also some subscriptions that aren’t helpful at the moment. Gyms have been closed, but did you cancel that or are you still paying several hundred a month?

Limit your excursions

Not only is this recommended for health reasons, but this also helps you to save gas. Rather than going to the grocery store, returning, and then going back out the next day for another errand, plan your trips so that they coincide with each other, Hogan recommended.

Carry cash

This is a “hack” that Hogan has been using recently. If you’re going out to eat and you just bring an envelope with cash, you can’t accidentally spend more money than what you brought. It limits your spending ability while also creating the visible image of money leaving your hands.

Brainstorm free fun

Spending time with friends doesn’t have to cost money, Hogan said. Instead of going to the movies, play card games or board games. Instead of going out to eat, make dinner at home. One of Hogan’s friends held a dinner over Skype, which followed social distancing rules and had few costs attached.

“There are a lot of things you can do,” Hogan said. “You just have to start to think outside of the box.”

If you do want to participate in activities that cost money, set a limit for yourself, Strickland said. Say you’re going to spend X amount of dollars on yourself. Have fun, but once you’ve hit that mark, stop and find free ways to spend your time.

Be generic

The grocery bill isn’t the only one you can limit by going generic. You can also buy generic paper towels, soap, toilet paper and toiletries. If you go generic in many different categories, it can add up.

Sell what you don’t need

There are lots of things that people have that they no longer use. Go through your closets and drawers and pull out the old electronics and clothes, Hogan said. Then, you can sell them. If you don’t know how, someone you know probably does and can help you figure out eBay, Amazon and Craig’s list.

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Experts share tips for reducing expenses - AL.com

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