by Maria Papadopoulou

Created on: January 11, 2010   Last Updated: January 12, 2010

Reducing expenses is extremely important, especially during a time of recession where practically everyone juggles to make ends meet and save some money. By changing your financial management you will manage to drastically reduce your expenses.

How to drastically reduce expenses

1.Cut back on smoking and drinking

Taxes on cigarettes and drinks are the first to increase during a time of recession and frustrating as this may be for you in the beginning, it is actually a blessing in disguise, as it can actually encourage you to cut back on both smoking and drinking. The amount of money you will save will be significant, not to mention that your health will improve as well.

2. Shop from small local stores

By shopping from small local stores, not only will you find the products in lower prices, but it is possible to negotiate the payment terms with the owner of the shop as well. The owner of a small, local store will probably accept payments at the end of the month when you get paid, or installments when you cannot pay in full, as opposed to the owner of a big store.

3.Make the most of the Internet

Making the most of the Internet  is one of the best ways to reduce expenses drastically. When using the Internet you can use movies and shows for free without having to use the TV, listen to the radio for free without having to  buy and use CDs, send emails to friends and relatives for free (and therefore reduce the amount of telephone calls and the cost that comes with them), as well as sending greeting cards for free without having to buy them and send them via mail.

4.Look for free stuff

Look for free tickets to plays or movie theaters, free entrance to museums and concerts as well as free books. Free is always good and it can certainly come handy when there is no money  left  to spend on entertainment.

5. Save on water and gas

Saving on water and gas can reduce your expenses, possible more than anything else. To save on water, opt for  5 minute showers instead of filling the bathtub. If you use the bathtub, then fill it only halfway. Use low-flow shower heads to control the amount of water better. When brushing your teeth, scrubbing or saving, make sure that the water is turned off.  Use the dishwasher only when it is full, in order to save water.  To save on gas, it  would be good to stop using your car and start using public transportation, a bicycle, or even your own two feet, when that is possible. If you insist on using a car,  then pick a small or a hybrid car which needs less gas. Look for the  type of gas that comes cheaper for you.

6. Trade

Trading things with friends, relatives or neighbours can help both parties get the things they want without having to spend anything. Trade  books,  CDs, videotapes, computers, iPhones and clothes and you will be surprised at how much money you can save.

In order to reduce your expenses drastically, it is necessary to incorporate the above tips into your daily life and follow them no matter what. The results will be pleasantly surprising.

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