by Katarzyna Radzka

Created on: June 02, 2009

People spend a tremendous amount on living expenses. Expenses that could easily be eliminated, and the money contributed to other areas like debt reduction, family holiday or investment. Cutting down doesn't have to mean a cut in quality or comfort. With a bit of organisation, planning and thought, you too can cut down on your living expenses, resulting in more money in your pocket.

Food bills

This is the biggest area where households can cut back on. We spend far too much money on unnecessary food items, much of which goes off at the end of the week or fortnight. Before you enter the shopping centre write up a list of the products you want to buy. This will be easier if you know what you want to cook for the next week, fortnight or month, depending on how often you usually do your grocery shop. Don't stray from the list. Just because the soft drink is on special doesn't mean you need it. Half price chocolate bars? If chocolate isn't on your list, forget about it. Just by using a shopping list you can cut back your grocery bill by up to 20%.

Electricity

Swap your high energy light bulbs for more environmentally friendly and economical ones. Turn of the light if you're not in the room, and avoid having all your appliances on if they are not being used. The saving might be only $5 a month, but it adds up to $60+ per year. Turn off the television and radio when no one is in the room. If it's cold put on a jumped instead of heating the house.

Gas or Wood

Depending on where you live, you may have the option of having gas or wood to heat your house. Wood is usually the cheaper option. Yes, it does take more effort to get it but it will save you hundreds in the long run. The upside is that you can have a lovely fireplace to sit next to.

Phone

Do you need a land line if everyone in the household has a mobile? Probably not. If you don't have a plan, get rid of the house line and at the same time eliminate an unnecessary monthly expense. If you need it for the Internet, these days you can get a wireless provider and if you have it with the same company as your mobile phones, you might be able to get a discount. Use Skype or other Internet connection to communicate with friends long distance.

Car

Driving to work or to the shop is a comfort. Fuel is expensive and if you're finding yourself at the gas station more often than you'd like, you might like to consider other options. Public transport is a cheaper option if you have good access and can buy a monthly

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