Q&A for How to Reduce Expenses

Avoid living beyond your means. Consider cutting back on things like going out every night and spending money at restaurants and bars. If you really enjoy spending money on dating and going out, prioritize your spending and cut back on other things. Try cutting back on expenses like cable TV, for example.

If you pay high rent or mortgage, you may be able to cut back by moving to a less expensive apartment, renting a room, or moving in with roommates when your lease is up. If you live in an area with good public transit, getting rid of your car may be an option. You may even be able to sacrifice your cable or internet and use the computers at a library or a friend’s house. Reduce your cell phone bill as much as possible by sticking to a very basic calling plan or using a prepaid phone. If you have to go online with your phone, you might even be able to use a data-free plan and just tap into wifi networks.

Flexible expenses are expenses that can easily be changed or do not stay the same from one period of time to the next. For example, money you spend on eating out, going to the movies, or even getting weekly groceries are all flexible expenses.

Monthly expenses include things like your rent or mortgage, your phone bill, and monthly insurance payments—any recurring expense that you pay once a month.

You can do two things to lower your health insurance premium: increase the amount of your deductible and lower the extent of your coverage. Neither of those options is very pleasant, but without them your premium is likely to rise (and may do so even if you do them).