What are household expenses and how can you reduce recurring charges? Here are ways to cut back overlooked expenses.
Household expenses represent a per-person breakdown of general living expenses. They include the amount paid for lodging, food consumed within the home, utilities, and other costs. The sum of all the expenses is then divided by the number of family members residing in the house in order to find each member's share of the total expense.
In addition to the cost of the housing—whether it’s rent, mortgage payment, or real estate taxes—fees for utilities such as electricity and gas, as well as insurance for the property are also part of household expenses. The needs of each person in the household also fall under these costs. These needs include the cost of prescription medicines and other healthcare fees.
Maybe you’re saving up now to buy a new car, kickstarting a condo purchase, or just working at paying your credit card debts in full. It may surprise you to know that you can add to your savings and avoid debt by cutting down on some overlooked expenses and making use of apps.
When it comes to saving money, you’ll find that the little things matter especially now with rising gas prices and basic commodities. Each of your regular bills may seem small but, added together, can drain your resources.
There are easy and effective things you can do to cut on costs without too much hassle. Check out these 5 ways to reduce your household expenses and save a good amount of cash.
1. Stop eating out.
Make home cooking cool, something you can do with your significant other or kids. At work, bring baon for lunch and exchange recipes with your colleagues. You’ll be amazed at the amount of money you can save by the end of the month just by not eating out.
2. Carpool to work.
This will reduce your gas and parking costs significantly. It also helps to make Metro Manila traffic less congested.
3. Make use of financial apps.
There’s a wide range of financial apps available on the internet to help you check your expenses and debt. These can help you manage your monthly budget and allow you to see where your money is actually going. A couple even offer advice on how to stop living paycheck to paycheck and increase your savings.Remember that being able to manage your expenses accordingly will not only greatly contribute to your savings but will also do well on your financial wellbeing.
When you’ve saved enough, you can level up your financial readiness by getting insurance that can protect you, your health, goals, and financial future. You can visit FWD Life Insurance’s online shop to find out which product suits your needs best. We have affordable and easy-to-buy insurance products like KanMend that protects you from 42 covered critical illnesses, KanLive that gives your family PHP 200,000 in case of death, or KanGuard that provides PHP 500,000 in case of accidental death or if you become permanently disabled due to a terror attack. Protection and peace of mind for only PHP 1799.
4. Take a hard look at your monthly entertainment expenses.
With Netflix, iFlix, and other streaming options, you can let go of your monthly cable subscription. There are tons of movies on streaming platforms and original content such as Netflix series.
5. Make it a habit to turn your lights off and unplug all unused devices.
Turn the light switch off whenever you leave the room. Unplug the television, electric fan, and even your phone charger when not in use. Leave sticky notes for household members as reminders. Your diligence will pay off soon when you see a lower electric bill.
When the money you save from these simple decisions is in your bank, it’s time to consult an expert on how to grow your money. Know how by setting an appointment with an FWD financial advisor. Click here.