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Do you feel like your hard-earned money is slipping through your fingers, leaving you with little to nothing left over at the end of the month? Do you feel like you have no control over your finances? If so, it’s time to take a look at where your money is going and see if you can cut out any unnecessary expenses.

In this post, we’ll discuss five of the most common unnecessary expenses that many people have and how you can save money by cutting them out. By reducing or eliminating these expenses, you’ll be able to free up more money for investments, debt repayment, emergency funds or a rainy-day fund. And that’s just the start — there are plenty of other ways to save money once you reduce some of these unnecessary expenses. So, if you’re ready to take back control of your finances, then let’s get started!

Tips for budgeting and reducing spending

Before we dive into what expenses you should spend less money on, let’s explore some helpful tips for creating a budget and limiting your overall spending.

Calculate your income

Before you can determine what type of budget is right for you, you must break down where your income comes from and how much it is. Whether you are earning a salary, working as an independent contractor or receiving returns on investments, calculating all sources of income is the first step toward creating an effective budget.

Allocate money for essential expenses

Once you understand all sources of your income and calculate your total income, you should take a look at essential expenses such as rent or mortgage payments, food and utilities. Allocating money for essential expenses is important and can help you set realistic goals for saving money.

Set realistic goals

Creating realistic goals for yourself is important when setting up a budget plan. These goals should include both short-term and long-term plans for spending and saving money over time.

Determine your current spending habits

Once you’ve determined your total income and allocated money to cover essential expenses, it’s time to track your current spending habits over time to identify potential areas of savings. By understanding where your money is going each month, you can determine where cuts can be made to increase your monthly cash flow and savings.

Identify unnecessary costs

Examining your current spending habits will enable you to identify any unnecessary costs that are reducing your savings each month so you can begin cutting back on those expenses. Whether it’s eating out too much or purchasing items that are not necessary, tracking current spending habits will enable you to make responsible decisions when it comes to cutting costs.

1. Limit eating out

Calculate how much you spend eating out

After determining current spending habits, calculate how much you spend on eating out each month — including restaurants, fast food and coffee shops. If you notice some areas are particularly high, this can show you how much money you can save by reducing or eliminating this expense from your life.

Consider healthier or simpler at-home options

Cooking meals at home can not only save you money but also promote healthier eating habits overall. There are plenty of easy budget-friendly recipes available online that don’t require a lot of preparation time but still provide quality meals for the entire family. Additionally, consider meal prepping for the week ahead to save even more money in the long run! If you love coffee, try getting a single-serve coffee maker instead of going out to buy coffee often.

2. Reduce entertainment costs

Curb subscription services

Many subscription services such as streaming services, apps, gym memberships, magazines and so on are often difficult to cancel once signed up for. Make sure to review all subscription services that you’re using each month and determine whether you’re using all of them. If you find some of the subscriptions you’re signed up for aren’t serving you anymore, go ahead and cancel them.

Research discounts on entertainment

Whether you’re planning to head to the movies or visit local attractions such as museums or aquariums, be sure to research discounts before buying tickets! Oftentimes these places offer discounts for students, groups, children and other individuals that may reduce the cost significantly — allowing you to experience quality entertainment without breaking the bank!

3. Limit transportation costs

Take public transit

If there’s public transportation readily available in your area (such as trains, buses, or streetcars) then consider taking advantage of these services instead of driving as much as possible. Not only will this help reduce emissions, but it’s also often cheaper than having to pay for gas every time you need to go somewhere!

Bike or walk

Whenever possible, try walking or biking instead of having to spend money on transportation methods. This way, you get exercise while also saving money!

4. Lower utility bills

Often, utility bills can be reduced in small ways, whether by limiting your consumption or searching for discounts or deals! Some examples include unplugging electronics that aren’t in use, turning off lights in rooms that aren’t being used and using smart water settings on appliances. Smart water consumption can include washing clothes for half an hour versus a full hour as well as on the cold water setting and getting a water-saving shower head.

5. Spend less on clothing and accessories

Shop for quality over quantity

When shopping for new pieces, think of the longevity of the garment or accessory and how often you plan to wear it. Is it made of good, quality materials? Do you truly love it and have other pieces to pair it with? Or is it just trendy right now? It’s always better to spend more on one good piece that you will wear until it wears out than to spend less on many lesser-quality pieces that won’t last as long.

Shop at thrift stores

Thrift stores are great places to find gently used and sometimes even name-brand clothes at drastically reduced prices compared to regular retail stores. This makes them perfect options if you’re shopping for clothing and accessories without breaking the bank!


Saving money is key to gaining financial freedom and achieving your financial goals, but it can often feel overwhelming to take the first step and sit down to evaluate your budget and current expenses. Cutting out unnecessary expenses is one of the simplest and most effective ways to start saving more of your hard-earned money. So don't let your finances run amok; take control today and start saving money with these five simple ideas!