3 Ways To Dramatically Reduce Your Monthly Expenses

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reduce monthly expenses

It can be really difficult raising a family these days. There are so many tasks and responsibilities to take care of and, with the pandemic; our daily routines have now been turned upside down. Everything in life seems to be a lot harder now. Our homes are no longer a place of refuge as they have quickly turned into our office and our child care place and school too.

On top of all these changes, we’ve had to face new financial realities too. Many parents have seen their work hours cut and lots of people have been temporarily furloughed or lost their jobs. Whole industries, such as the hospitality and travel sectors, have been decimated. Certain areas of the country, like Hawaii, have seen the flow of tourism entirely curtailed.

With everything going on it’s really important to take a look at ways you can reduce your monthly expenses.

Refinance and Consolidate Your Student Loans

For many people in their 20’s, college graduation is the start of a new path in life. The fun times at university are replaced by the new reality of career, moving in with the love of your life, and starting a family. With these new steps come a whole series of new financial realities.

One of the most important, pressing concerns is to figure out how you can manage and pay off your student loans. If you have a lot of student debt one of the best things you can do is to look into consolidating your outstanding student loans. There are excellent online resources that can help you review your available options and learn about which choices might be best for you.

By consolidating your debt you’ll be able to combine student loans with different rates and payment schedules into one, easy to manage payment plan.

Get a Side Hustle to Pay Off Your Credit Cards

Most people who are raising a family don’t have much money left in the budget at the end of the month. The regular pay from our 9 to 5 jobs barely covers all the necessary expenses.

At times we are forced to tap our credit cards for purchases or even monthly groceries, putting us further in debt. Interest payments on credit cards will keep you enslaved for years. Banks and financial institutions can borrow money almost for free with today’s interest rates at historic lows.

As their consumer, however, you regularly get charged 18 to 20 percent on what you owe. If you want to set yourself on a path to financial freedom, get a side hustle, and use all the money you make from that work to pay your credit card balances down.

Sell Your Second Car

Before the pandemic, most families with two wage earners also had separate commutes. They needed two cars so they could each get to work and then pick the kids up and take them to all their events. The extra car payment and increased expenses for insurance were simply part of what you needed to do to get by each month.

Now, with lots of people working from home, there is no need to keep paying for a second car. It’s time to sell your second vehicle and get out from under that monthly payment. If your second car is already paid for, you’ll be able to pocket a lot of cash when you complete your sale. You’ll also save on insurance rates and car registration by only having one automobile.