Do you end up going over your monthly budget every month, and haven’t figured out how to cut down on expenses?
Click start to play today’s Word Search where you can spot the word ‘expenses’ among other finance terms. For tips on managing your income and other money-related explainers, check out Gulf News' Your Money page.
According to a November 2020 report in US-based business website Forbes, signs of a spending problem include:
- Carrying a balance on your credit cards
- Running out of money towards the end of the month
- Paying rent that is greater than one-third of your salary
- Choosing which bills to pay this month and which not to
- Spending more than you earn
If any of these issues seem familiar, it’s not an uncommon scenario. According to a November 2021 report by the US-based nonprofit debt management services organisation InCharge, most American households lack sufficient savings to pay for a $1,000 (Dh3,672) emergency. In times of financial hardship, small bills can turn into major problems, so it’s worth looking at household expenses to see what should stay and what can go.
Here are three ways to cut back and save money in challenging times:
1. Start using a budget
It doesn’t have to be complicated. According to an April 2020 report by Forbes, one of the best ways to create a budget is to write out bills, bank statements and salary amounts, and save receipts to figure out how much you’ve been spending each month versus how much money is coming into the house. Next, create a budget with predictable spending on bills like rent or car payments, and estimates for fluctuating categories. If you feel you don’t have the time for that, download a budgeting app, like Mint or YNAB (You Need a Budget), which helps people craft a zero-sum budget.
2. Cook meals at home
Dining out is great, but it can also get pricey. Cooking at home is significantly cheaper (and there’s no tip!). It’s one of the fastest ways to cut back on spending. Start with one-pot dishes and meals that require just a few basic ingredients, and who knows, you might start loving to cook!
3. Use a cashback credit card
A cashback credit card can help you earn two per cent back or more on everything you buy, and most have low or no annual fees. You could use the rewards to splurge on something you want, or put it back towards your credit card bill to reduce your expenses.
What steps do you take to cut back on your monthly expenses? Play today’s Word Search and tell us at games@gulfnews.com.
