How To Reduce Your Expenses And Save Money

September 25, 2022

Written by Dorcas Obenewaa Owusu

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Cutting expenses doesn’t have to be difficult if you know where to look. It requires a few lifestyle adjustments to help you spend less and save more. So in this post, I’m going to share with you a couple of tips on how to reduce expenses and save more money. However, this list is not comprehensive, so I encourage you to analyze your expenses to see if there’s room for trimming. Let’s get to it…

Get a grip on bad spending habits.

Your spending habits will have a huge impact on your financial security in the long run. Impulse buying and failing to track your spending are some forms of bad spending habits you need to break. Start by taking an inventory of your daily spending until you eventually identify the things that are eating up your money. You should also figure out the core reasons why you are spending so much in the first place.

So here are a few more unhealthy spending habits to watch out for:

  • Eating out instead of cooking in bulk at home.
  • Frequent spending at expensive pubs, restaurants, and other places
  • Constantly buying new outfits

Have a budget

Budgets are a simple but effective way to determine how much you want to spend, when, and on what. Since it’s an analysis of your finances, it’s pretty good at revealing areas where you may be spending too much. This makes it easier to weed out unnecessary spending and save money. There are many ways to create a budget. To get started, try this simple, beginner-friendly guide.

Automate your savings 

In an automatic savings plan, a fixed amount of money is automatically transferred from your bank account to your savings account at set intervals. It is an effective system that eliminates the temptation to spend unnecessarily in the first place. It also helps you get into the habit of spending less while increasing your savings.

Unlink your bank account from your Momo wallet.

Don’t get me wrong: having your bank account linked to your Momo wallet is not bad. In fact, it’s very convenient if you need to transfer money in an emergency. But it does have its drawbacks. If you either spend a lot or have a hard time keeping track of your spending, you can easily be tempted to keep “pulling” money from your bank account to your momo wallet until you have little or nothing left.

Then you are in for a rude awakening when your bank gives you a “bare-bones” account balance at the end of the month. So unless you have strong financial discipline, do not link your Momo wallet to your bank account. Instead, carry some money in the momo wallet itself to be ready for emergencies. You can also carry physical cash as a backup plan.

Take advantage of interest rates and other perks from your bank

Check with your bank to see if it offers high-yield savings packages that you can invest in. This way, you can make the most of your money and reduce the impact of inflation on its value. Do your research and switch to another bank with better benefits if your bank is not satisfactory.

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Switch to a better Internet package

You may not realise it right away, but regularly buying data or airtime  can significantly increase your expenses. Most people don’t track how much they spend on data and airtime so they don’t realise how it adds up.

 It’s better to take advantage of data packages, discounts, and special offers from your Internet provider. Or better yet, switch to another provider if you are not getting good value for money from your provider.

Check the quality of the items you buy (invest in buying more quality items)

Whether you are buying electrical appliances or furniture, always pay attention to the quality of the product. This way, you can avoid having to spend extra money on repairs. Check out reviews or ask friends and acquaintances to give you their assessment of the reliability of an important product before you buy it. Also, invest in energy-efficient appliances that will not run up high electricity bills.

Review your gym subscriptions

Yes, many people say that gym subscriptions in Ghana are high-priced. If you think so too, then it is high time you switch to a cheaper gym to save the extra money. You can also try other low-cost options if you don’t mind giving up the social benefits that come with working out at a gym.

Download a workout app and do the exercises at home at your own pace. Follow your fitness icons on Instagram to follow their workout tips and routines. Or subscribe to free fitness channels on YouTube. Do the same for all other paid subscriptions that drain your account.  Think of either cancelling them or better still find cheaper alternatives

Evaluate the cost of transportation

Fuel prices are shooting up and it’s causing a severe dent in your pocket. So what do you do? Save money by selling that car and replacing it with a more fuel-efficient one.  In some cases, people even abandon their cars and opt for tro-tros or other forms of cheaper transport. 

You can also try carpooling to reduce fuel costs. Considering that this is not something you normally see in Ghana, it is worth a shot, especially if you know people close by who would be willing to pay for the shared ride. Moreover, if you use ride-hailing apps regularly, compare their average cost with that of commuting via other less expensive modes of transportation (such as tro tros, again) and choose the cheaper option.

So there you have it. I hope you took away some pointers from this post and I’ll see you another time

About Mesika

Hey there, my name is Isaac Sesi. I built Mesika to provide free personal finance resources online to help young Ghanaians become smarter about their money.

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2 Comments

2 Comments

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