Everyone needs to trim back expenses in times of economic downturn or personal financial hardship, but it can be difficult to figure out how to reduce a budget. Food and clothing are often the biggest portions of expense after rent and insurance, and they're also the most flexible. Depending on where you choose to shop and what you buy there, you can trim your spending by an amount that makes a big difference in your budget.
Step 1
Avoid trendy clothing. While a lot of trends are reasonably priced, some will take a big bite out of your wallet. Even those that don't are likely to go out of fashion before long and will collect dust in your closet when you stop wearing them. Instead of going for trends, buy basics. Solid-colored and printed tees, button-downs, skirts and jackets won't go out of style for years, and you'll be able to pair them with almost anything that's already in your wardrobe.
Step 2
Buy only the food you need. This is easier said than done, especially if you go to the grocery store hungry. Make sure to eat a meal or snack before you shop, and bring a list every time---even if you're just picking up a few ingredients for dinner. Unless you see a huge sale for something you eat all the time, stick to the list! It's a great way to avoid impulse buys and make sure you'll use what you do purchase.
Step 3
Get generics and buy in bulk. There's nothing wrong with grocery-store brands or generic versions of your favorite products---in many cases, they're the exact same foods in a different package. And there's one other difference---they're a lot cheaper. If your store has a no-name version of a product you like, try it. Also, buy nonperishable items in bulk. If your family goes through a lot of cereal or eats rice every week, consider buying a large bag of the product rather than several boxes.
Step 4
Be gentle with laundry. Jeff Yeager of The Daily Green recommends consumers launder their clothing less often, use cold water when they do and dry items on clotheslines. Less wear and tear on clothes adds up to more durability over time and means clothing items will last longer.
Step 5
Cook for yourself. The cost of eating out can add up quickly. Though it's more time consuming to prepare meals at home, it's also much cheaper and more healthful. Get Rich Slowly offers money-saving tips on food that include making "batch meals," freezing them, and serving them throughout the week.
Tips and Warnings
- Occasional splurges are OK. Designate what you'll splurge on each month---expensive baking ingredients, for example, or one new pair of boots.
- Don't go overboard when spending on others. Stick to your budget even when buying gifts.
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