5 Ways to Spend Less than You Earn


Are you stuck for ways to spend less than you earn right now?

To prevent debt, you need to spend less than you earn. This sounds simple and obvious, but for many it isn't. Bills don't really change and there are outgoings you need to cover every month. You need to find other ways to save money on your necessities and start looking at your luxuries. Here are five ways to spend less than you earn.

1. Refinance Those High-Interest Loans

When you took a loan out a few years ago, you may not have had the choice over the interest rate. However, after some time of regularly paying it back, your credit rating will improve and you could get a finance deal at a much lower interest rate. A few percent may not sound like a lot now, but it is over the course of the loan term and it will take your monthly repayments down. Look into refinance your high-interest loan and see if you can save a little each month.

2. Get a Less Expensive Vehicle

If you need your vehicle right now, think about the amount that it costs to run. This isn't just about gas. You also need to think about the cost of tax and insurance. Look into other vehicle options and find one that is less expensive to run on a monthly basis. You may find it costs less to buy, so you have money left over from this one that you sell.

Another option is to get rid of the vehicle all together if you can. If you live close enough to good public transport, it could work out cheaper over the course of a year than having your own car does.


Every little penny counts towards your savings.

3. Enjoy a "Staycation"

Getting away for a break is something many individuals and families dream of doing, but they can be so expensive. Change it this year by opting for a "staycation." You can stay at home but enjoy trips out during the day to affordable places. Try the free museums or trips to the park with a picnic to enjoy time with the family.

4. Change Your Energy Supplier

Energy companies charge different amounts and you may be with one that charges the most. Compare the energy suppliers working in your area and find the one that costs the least. You may even find that the costs decrease if you agree to a 12-month contract, and you could be guaranteed that deal for the term of that contract instead of dealing with hikes in costs now and then.

5. Are the Luxuries Necessary?

Think about the little things you spend your money on. Are they really a necessary part of your spending? This could be on smaller items at the grocery store or the takeouts instead of home cooking. You will be surprised where you spend the extra money without tracking it. The next time you find yourself spending for a luxury, ask yourself if it is necessary and start saving money.

You really can spend less than you earn. The trick is to shop around to find cheaper deals and consider your current spending. Your bills may not change, but your overall outgoings drastically can.


Alexandria Ingham is a freelance writer with experience in technology, saving money and budgeting.