How to spend less money

This guide can help make informed decisions about ways to live more cheaply and thus save money.

Reduce housing costs

For homeowners, one of the most obvious ways to save money is to consider a home equity loan that can lower the monthly payments or payoff higher interest debts. A less obvious option is to reduce property taxes by reviewing your last property assessment and applying for available exemptions. To do this, contact your local tax assessor's office to obtain information about exemptions available in your specific area. Seniors, veterans, disabled folks, and low-income households are most likely to qualify.

You may also consider downsizing: This can result in a smaller mortgage payment as well as reduced maintenance and utility costs.

Spend less on groceries

Set a budget for groceries and create a meal plan ahead that fits within that budget before grocery shopping. This reduces unnecessary purchases as well as food waste. Also consider getting non-perishable items in bulk to save money in the long run: Rice, beans, and most canned goods are relatively inexpensive and have a long shelf life. For those with the time and space, well run gardens can save significantly on produce costs.

Save on utilities

Reducing electricity, gas, and water consumption can save money. In addition to good habits, energy efficient appliances and smart switches can save money long-term. Using LED bulbs and reducing the temperature on the water heater thermostat can also shave a few dollars off of your utilities each month. Finally, call your internet, cable, and phone companies at least annually to ensure you're getting the best deal possible.

Manage medical expenses

Read over and be sure to understand your health insurance plan so that you know how to get the most out of it. Preventative care and healthy habits (regular exercise, a healthy diet, and effective sleep schedule) is especially important to reduce and avoid the need for expensive medical treatments later in life.

Give every dollar a job

Don't just track expenses. Give every dollar a job to do by creating and sticking to a budget, then track expenses to identify additional areas where you can cut back or make more cost-effective choices. When you spend money, spend mindfully: Read reviews, compare prices, and consider less expensive alternatives.

Develop skills

Any skill that can prevent or reduce spending is probably worth learning. Common skills that can save money are cooking, basic home repairs (e.g. painting, drywall repair, and fixing leaky faucets), small DIY projects (e.g. oil changes, pest control), and mending clothes. Don't forget the value of negotiation as a skill: You can often negotiate to reduce prices or lower fees.

A great way to learn cost-saving skills is through community education programs. Classes are typically offered at local communities centers, through community colleges and adult education centers, or at public libraries. An easy way to find classes in your area is to do an internet search for "DIY workshops" or "home maintenance classes" along with your location (for example, "DIY workshops in Atlanta Georgia").

Find passive income streams

Even folks that are busy can often find passive income streams. Options can include: Renting out a spare room, participating in cash-back/rewards programs, and monetizing hobbies.