Reducing Expenses
It is possible for families to find ways to reduce expenses, even where they are on a limited income. Some common practices of finding ways of reducing expenses include:
- Dividing expenses into ‘needs vs wants’
For example, an evening meal is a need, but dining out every week is a want.
Different people may have different ideas about needs and wants. The value of this strategy is not in directing people about what they should, and should not have, but in encouraging identification of choices.
Families may be able to use this idea in discussion with their children. Children may be able to have some choices – eg choosing an outing during the school holidays, instead of parents feeling pressured to give in to all their ‘wants’.
- Identifying ‘spending leaks’
Spending leaks are small, discretionary expenses that seem trivial on their own, but which can add up over time.
If families can stop a range of these ‘leaks’ this can make a big difference. Examples could include: - Buying lunch instead of bringing it from home
- Buying a daily coffee or chocolate bar
- Fines or overdue charges
- Buying from convenience stores instead of supermarkets
- Buying pre-packaged snack foods or drinks for school lunches instead of cooking at home, buying biscuits by the box or using a drink bottle
- Using the car where public transport would cost less
- Fees for excess ATM transactions or overdrawn accounts
- Paying for parking instead of walking a few blocks
- Fixing water leaks, and turning off lights or unused appliances
