5 Ways to Eliminate Expenses from your Budget

In every budget or spending plan, I put expenses in 3 categories:

1. Fixed costs – expenses that are “set in stone” like your rent or mortgage
2. Flexible costs – necessary expenses like groceries, internet, phone bills.  These can usually be reduced, but not eliminated.
3. Extras – expenses that go above the cost of living.  These might be convenience items, hobbies… expenses that allow you to enjoy life a bit more.

This article will target the ‘extras’.  You might find that you have been buying things, subscribing to services or paying membership dues that you don’t really NEED.  If you could do without some of these things, you have an opportunity to ELIMINATE it!  …not just reduce it – instant money in your pocket!  When Lauren and I started tracking expenses, we were amazed at how many items were extras.  In the first month alone, we were able to cut about $200-$300 with hardly any effort… we just lived without a couple luxuries but noticed no difference in our standard of living.

Here are some examples of costs that you might not realize are draining money from your wallet:

• Daily coffee from Starbucks? (Why not try Roasting your own coffee at home for much less money)
• Expensive gym membership that you don’t use?
• Extracurricular hobbies like fishing or buying purses?
• Getting your hair and nails done every month?
• Expensive cable or satellite TV packages? (Try negotiating your cable prices down.)

Please keep in mind that I am not advocating eliminating ALL of these expenses.  Lauren and I firmly believe that can enjoy life on a budget.  What things are considered ‘extra’ but you are really passionate about?  You might want to keep some of those.  Setting your budget realistically and allowing yourself to enjoy a few things will increase the chance that you will stick with it.

BONUS: If you have ever wanted to know how to use a budget spreadsheet, I’ve got the PERFECT tool!

What are some extras that you have eliminated from your spending?

What are some extras that you could eliminate?