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What Budget Categories You Should Focus on to Cut Your Expenses

Many financially savvy people save money by cutting down on unnecessary expenses. There are numerous surprisingly easy and effective ways to reduce your monthly expenses. If you take some time to assess your financial situation and assess areas where your expenses can be reduced, you’ll be able to potentially save a great amount of money over time. Here are just a few categories where you might be able to cut back on your expenses.


Housing is generally your biggest expense. To keep it from being too much to handle, try to keep your housing costs around 25% of your budget. There are several ways to reduce your housing expenses. You might try refinancing your mortgage, renting out one of your rooms, or downsizing to a smaller place. You can also try finding a home in a less-expensive area; homes are usually less expensive farther away from the city. If you are currently renting a space, you could consider getting a roommate, moving to someplace more affordable, or negotiating with your landlord to lower your rent.


The average American spends nearly $10,000 every year in transportation costs alone. This means that you can save a great deal of money by cutting your transportation costs. There are several easy and cost-effective ways to do this. For example, consider biking or walking to work. These are physically healthy solutions that come with the added benefit of costing only a fraction of what it takes to maintain a vehicle.

Other ways to cut your transportation expenses include using public transportation, buying used cars, and buying vehicles with cash. There are a few used car buying tips you should know before making a purchase. These include doing research, setting a budget, getting the car inspected, and taking the car for a test drive.


One of the other ways you can save on your expenses is to reduce the amount of money you’re paying for entertainment each month. You can reduce your entertainment expenses by canceling club memberships if you don’t use them regularly. You can also reduce expenses by eliminating your cable bill, looking for inexpensive entertainment options, and canceling newspaper and magazine subscriptions.

Reducing your housing, transportation, and entertainment expenses may seem small and ineffectual at first in terms of saving money. However, the amount of money you’ll be saving from not having to pay as much per month on your housing, transportation, and entertainment will quickly add up and allow you to spend that money on better things for you and your family.

Read this next for more great tips: How To Fix Your Credit During A Pandemic

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