One of the biggest challenges in personal finance is figuring out ways to spend

less money — and one of the best ways to accomplish that is to cut down on your
monthly expenses. Even though some of our regular bills might seem small and
insignificant on their own, their cumulative effect can be enormous – and become a
huge drain on our resources.

40 Ways to Cut Monthly Expenses

To minimize the damage caused on a monthly basis, many people look for ways to cut
expenses that are both easy to implement and effective. Here are a few ways to save
money that you can try one by one without too much hassle, but offer the potential
to save huge sums of cash over time.

How to Save Money on Transportation

Let’s face it: Cars are money pits. Not only does their value constantly go down,
they also devour fuel by the gallon and require all kinds of pricey maintenance.

Between car payments and interest, insurance, gas, maintenance, and other costs,
AAA estimates the price of owning a car to be over $8,600 a year – and that doesn’t
even include parking. So how can we reduce the cost of automobiles in our monthly
budget?

1. Use public transportation.

If you have access to public transportation, you can save quite a bit of money on
gas, parking, and maintenance over time. For a small percentage of the cost of
owning a vehicle, you can get from one side of town to the next, to work and back,
and to most important events. Each time you’re able to leave the car behind, you’ll
be saving money.

And that’s just the money you’d save on gas and maintenance and the like — you’ll
save far more if you’re able to forego buying a car completely. Rideshare services
like ZipCar, Lyft, and Uber make it easier than ever to live car-free in major
cities, allowing you to rent a car or hire a ride for the occasional Costco run,
night out, or day trip to the country.

I’ve used this strategy myself: During my earlier days, I exclusively used public
transportation to get around and save money, and it was downright painful to add a
car to my monthly finances.

2. Sell a vehicle.
If a vehicle you own is rarely used, consider selling it. If nothing else, you’ll
save money on insurance. If you’re able to get market price for your vehicle, you
could also use the proceeds to beef up your savings account or pay off high-
interest debt.

3. Carpool to work.
If you have an opportunity to share a ride to and from work with someone else, you
can significantly reduce wear and tear on your car, save on gas, and take advantage
of carpooling lanes that might make it easier to get to work.

4. Keep the tires on your automobiles properly inflated.

Once a month, stop by a local gas station that offers free air and check the air
pressure in your car tires. If they aren’t inflated to the optimal PSI, fill each
one to the maximum recommended amount as stated in your manual. Every two PSI of
air you’re able to add to your tires can improve your gas mileage by 1%.

Ways to Save on Debt

Any time you can reduce how much money you owe, it will help lower your ongoing
monthly expenses. For starters, paying off debt means fewer monthly bills to pay,
leaving you with more money to save. Here are a few ways to cut down on debt and
save money over time.

5. Refinance your home and/or automobile.

If you think you might be eligible to refinance your mortgage at a lower rate,
contact some lending institutions. Locking in a lower interest rate can not only
save you money over the life of the loan, but can also lower your monthly payment
and increase your monthly cash flow. Similarly, if your credit has improved a lot
since you first purchased your car, you may now qualify for a far better interest
rate, so it could be worth refinancing your auto loan as well.

6. Consolidate your student loans.

If your student loans are locked in at a high interest rate, figure out whether it
makes sense to consolidate all or some of them. While this isn’t the silver-bullet
saver it used to be now that most federal loans have fixed rates, if you do find a
good loan consolidation option, it could save you money every single month.

7. Consolidate your debts using a balance transfer card or personal loan.

If you’re carrying debt with a high interest rate, a balance transfer might be a
good option. The best balance transfer cards offer perks such as 0% APR for up to
18 months – and some even offer rewards programs. Taking advantage of a 0% APR
offer can help you pay down your debt and save quite a bit of money on interest.
Just make sure to factor in the balance transfer fees, and pay down the entire
transferred balance during the introductory period if possible.

If you have high balances on multiple credit cards, it can also make sense to
utilize a debt consolidation loan. These loans allow you to combine several high-
interest debts into one personal loan, which ideally has a lower interest rate than
your current debts and enables you to pay down your debt faster. As with balance
transfer cards, be sure to take into account any upfront fees and make your monthly
payments on time.
Check Your Personal Loan Rates
Answer a few questions to see which personal loans you pre-qualify for. The process
is quick and easy, and it will not impact your credit score.Get Started
8. Request a credit card rate reduction.
If you’ve got a fairly large balance on your credit card, call up your credit card
company and request a rate reduction. If you pay your bill on time every month,
they may be willing to negotiate. If they won’t go for it, get a 0% balance
transfer onto another card with a lower rate. If you have a history of late
payments, a credit card for bad credit can help you rebuild your credit score and
qualify for cards with better rewards and lower rates in the future.

9. Sign up for automatic debt repayment plans.

Many installment plans, particularly those associated with student loans, offer an
interest rate reduction if you sign up for automatic monthly billing. You should
never pass these up – not only do they save money automatically each month, they’re
also incredibly convenient and ensure you won’t miss a payment or incur a late fee.
If you have any installment payments (particularly student loan debt), see if such
an offer is available to you.

10. Sell unused items.

Dig through your closets or attic and look for items you no longer use that may
have value, then sell them on eBay or Craigslist. You can then use the money you
bring in to pay off debt and put it behind you once and for all. I did this myself
with a number of items, including my baseball card collection, when my debt load
became almost unmanageable.

Ways to Cut Down on Energy Bills

From hot summers to cold winters and all the gadgets we plug in, Americans spend a
lot of money on energy bills; in fact, the average household spends about $2,060 a
year. Fortunately, technology has brought us a few effective ways to improve energy
efficiency and lower that figure.

11. Install CFL or LED light bulbs.

If you’ve never updated the lightbulbs in your home, consider switching to either
CFLs or, better yet, LEDs. These bulbs are about four times more energy efficient
than incandescent bulbs and last for many years. One tip: When comparing bulbs, use
the lumens number to compare bulbs, not the equivalent wattages. Lumens indicate
the actual amount of light emitted by the bulb.

Remember also that under normal usage (four hours a day) and average electrical
rates ($0.12 per kilowatt hour), replacing a 60-watt bulb with a 14-watt CFL or LED
saves about $0.66 per month. Now multiply that by all the bulbs in your house to
see how much you’ll save every month. Even switching just the five most-used light
bulbs in your home could save you upwards of $40 a year on your electric bill.

12. Install a programmable thermostat.

A programmable thermostat allows you to automatically change the heating and
cooling of your home when you’re not at home, when you’re asleep, and so on, saving
significantly on your heating and cooling bills. You can also set it to heat or
cool your home right before you arrive home from work.

13. Unplug all unused electrical devices.

Are there any electrical devices around the house that stay plugged in, but that
you rarely use? Most electronic devices constantly draw a small amount of
electricity, a phantom charge, that can add up quickly when you consider just how
many devices and small appliances you own. To eliminate that usage, unplug any
items or power strips you use infrequently.

14. Utilize timers and power strips.

Along those lines, consider utilizing power strips and power timers to turn
electrical devices on and off. A power strip with a switch on it, when turned off,
blocks the phantom charge on those devices; a timer can automatically turn off the
charge going to a power strip (or anything plugged into it) at a certain time each
night.

“Smart” power strips can even manage electricity flow based on a control device —
for instance, your DVD player will only receive power if the TV is turned on first.
These are all great ways to eliminate phantom charges on your home electronic
equipment at night or when they’re not in use.

15. Lower the temperature on your hot water heater.

The hot water heater is a major energy drain in most homes, accounting for about
14% of energy costs. Often, the water is kept hotter than most people ever need,
plus the heat is constantly lost to the environment, meaning you have to burn more
energy than ever to keep the water so hot.

Solve both problems by dropping the temperature down to 125-130 degrees Fahrenheit
(around 60 degress Celsius) and also installing a water heater blanket to keep in
the heat – a blanket can pay for itself in about a year, after which you’ll be
saving money monthly. While you’re at it, insulate any exposed hot water pipes as
well for additional savings.

16. Air seal your home.

Air sealing your home can prevent drafts — common efficiency culprits in older
homes. The loss of cool air in the summer and the loss of warm air in winter can
both increase your utility bills substantially. Here’s a great guide to this
weekend project from the U.S. Department of Energy.
Reduce Your Entertainment Expenses
Many people look at entertainment as the first thing to cut when trying to trim
costs, but they often forget to look at the regular expenditures that slowly eat
away at your financial foundation month in and month out. Here are some things to
consider that you may have overlooked before.

17. Cancel club memberships.

Look at expenses such your gym membership, your membership with the local country
club, and so on. How often do you really use these services? If you’re using a gym
membership less than once a week or a country club membership less than once a
month, you’re likely throwing away money. Try canceling any memberships you’re on
the fence about, and see if you really miss them.

18. Reduce or eliminate your cable bill.

Most people could find a cheaper way to gain access to their favorite shows if they
tried hard enough. Perhaps you could downgrade from premium to basic cable, or
maybe you could even eliminate your cable bill entirely (we finally did). Cutting
cable and watching less television can also cut down on your electricity bill and
expose you to fewer commercials tempting you to buy stuff – a double savings
whammy.

19. Look for inexpensive entertainment options.

Do you take advantage of your local library? Do you attend local community events
like music festivals and art fairs? Are you aware of local volunteer groups and
organizations? Your community may offer plenty of options for inexpensive or free
entertainment of all kinds. And any money you save is money you don’t have to spend
on entertainment. Fore more inspiration, here are more than 100 free things to do.

20. Find new ways to reduce travel expenses.

We live very far from our extended families, so we’re well aware of the costs of
travel. To save as much as possible, we cut down on the amount of travel we do and
use travel credit cards for everything from free hotel stays to airfare.

21. Cancel newspaper and magazine subscriptions.

If you get a magazine or newspaper in the mail but simply don’t read it, cancel
that subscription when it comes up for renewal without a second thought. An unread
subscription is nothing more than expensive clutter. If you need reading material,
hit up your local library instead.

22. Consider reducing/eliminating other regular paid services.

Look at the services you pay for each month and determine if the money you’re
spending is truly worth it. If not, just drop the service and look for other
options that can accomplish the same thing for less.

Have you examined your subscriptions lately? If you’ve cut cable TV, it’s great to
take advantage of streaming services like Netflix, Hulu+, and Amazon Prime — but
you probably don’t need to be paying for all three at once. Do you need your gym
membership, or could you get by with a home exercise routine? Or if you pay someone
to mow your lawn, could you eliminate that expense completely by mowing it
yourself?

There are even apps to help with this now — for example, TrueBill can review your
purchase history and look for unused subscriptions and other recurring charges, and
help you cancel them.

Ways to Save Money on Food

Food is one of the most common problem areas in the average American budget. We
either eat too much, spend too much on groceries, or eat out so often that it costs
our budgets (and waistlines) to swell. Here are some ways to save money on food and
eliminate waste.

23. Cook (and pack) your own meals at home.

When you cook at home, make a lot of whatever you’re preparing so you can freeze
some of it for future meals and, even better, take some leftovers into work for
lunch. Some people may shy away from leftovers, but there are some secrets to
making any leftovers as good as the original.

Read more: Six Simple Steps for Cooking at Home if You’ve Never Really Done It
Before
24. Reduce or eliminate eating out or getting take-out.
Take-out and dining out can be a nice luxury and huge time-saver for a busy family,
but the expense can be tremendous. Instead, look at other options to make dining at
home more convenient — for example, prepare lots of meals at once and freeze them
for easy cooking later. Meanwhile, focus mostly on simple recipes, and choose
recipes that use the fresh produce in season in your area.

25. Buy nonperishable items in bulk and use coupons.