Live Debt Free

Pay off debt. Save. Give. Live your mission.

15 Ways to Reduce Core Expenses and Debt

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Being in debt can often feel like living in an inescapable hole. Unless you’re pursuing medical or law careers or a high-paying business idea it’s often difficult to insure your earnings will match or exceed your expenses and debt. As a result, the debt isn’t paid off and the interest keeps on accumulating. The hole grows deeper and deeper.

Of course, reducing your expenses is always a prudent way to put more money toward debt payments. However, many times when people look to reduce expenses they focus on peripheral costs: forgo vacations, stop going to the movies, eschew coffee or alcohol, and/or try to spend more responsibly on their children. There is nothing wrong with making such cuts, but no expense-reduction strategy is fully effective without a concerted effort to lessen one’s core costs. Core expenses include food, shelter, and transportation – the necessities of modern life.

When I was struggling to emerge from debt, I focused primarily on cutting my core expenses and was able to pay off debt far faster as a result.

Here are the 15 main tips and techniques that I used to save money and pay off debt:

Save on Food

  1. Eat out only for special occasions.
  2. Buy store-brand products.
  3. Plan out all meals beforehand, and then buy only the necessary ingredients when shopping at the store.
  4. Eat meals high in low cost products that contain high nutritional value (rice, beans, eggs, tuna).
  5. Buy non-perishable items in bulk.
  6. Become a vegetarian.

Save on Shelter

  1. Install energy-efficient lights and a smart thermostat to reduce utilities costs.
  2. Insulate the walls and attic of your home to make it more energy-efficient.
  3. Take in subletters or find a roommate.
  4. If possible, downgrade to a cheaper home or apartment.

Save on Transportation

  1. Run or bike to work instead of taking the car.
  2. Use public transit whenever possible.
  3. Utilize websites like gasbuddy.com to find the lowest gas costs in your area.
  4. Plan out trips and errands so as to minimize the amount of driving required.
  5. Downgrade to a cheaper insurance plan that offers basic coverage

These are fifteen main ways I cut my core expenses while in debt. It wasn’t easy at times – many of these cuts certainly required a sacrifice on my part – but it was worthwhile in the end. If you’re looking to emerge from debt quickly, sacrifice is the quickest way to get there.

Use these tips along with other creative ideas you come up with and you’ll be able to reduce your expenses and your debt!

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Grocery Hacks – How We Save Money on Groceries

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How we save money on groceries

This is the story of how we reduced our grocery budget from $400/month down to less than $250/month!

My wife and I have very different personality types… and what a blessing that is!

  • I am the eternal optimist – the visionary – the idea guy – the spontaneous one – the encourager – the free spirit.
  • My wife is the responsible one – the realist – the finisher – always keeping things on track – always grounded.

Our different personality types definitely combine to make us into a better whole, and we have learned that each of us is particularly strong in certain aspects of every project.

For example, when we need to go grocery shopping we sit down together and combine our gifts to come up with our best grocery shopping plan.  If it wasn’t for my wife, there would be no plan!  If it were not for me, we would not be eating nearly as healthy.  If it were not for her, we would spend more money due to not planning a menu.  If it were not for me, we would not have a specific budgeted amount of money for groceries to stick to each month.

As you can see, both of us have different gifts and we work to combine our gifts to yield the most beneficial result for our family (which is currently just her & I.)

The other night we sat down — together — and compiled a list of ways we have successfully reduced our grocery bill over the last 7 months.

Jabs Grocery Hacks

I am including this awesome list of Jabs Grocery Hacks in a printable .pdf format that you can print and keep in your purse and/or stick on your fridge. Enjoy and happy hacking!
  1. Plan a menu – 2-3 dinners for the week and eat leftovers the other nights.  Base meals on what needs to be used up in the refrigerator.
  2. Make a list – only purchase items you will need to add to the recipes you’re making from #1 Plan a Menu.
  3. Stick to the list – once at the store, DO NOT deviate from the list.
  4. Use coupons – when available use coupons… but ONLY for the items on your list!  Do not buy things just because you have a coupon. In fact, here’s a resource to teach you how to coupon properly.
  5. Stock up – on your favorite/frequently used items when they are on sale.  Clear out space in your cupboards, pantry, basement to store overflow.
  6. Grow a garden – use your own produce in all of your recipes and if it is harvest season – plan your recipes around what you are harvesting.
  7. Pick your own – when it comes to fruit and veggies, pick your own and preserve them by freezing, canning, etc.  Use these frozen goodies to make your own jam, add to muffins, ice cream, breakfasts, etc.  We picked strawberries and we picked blueberries, we saved a boat load on both.
  8. Make your own – use fruits and veggies you grew/picked to make homemade jam, tomato sauce, salsa, etc.  You can also make your own bread, crackers, cleaners, etc.  We decided to use up a lot of what we already have in our pantry, then when we run out of something we decide if it is something we can make ourselves instead of purchasing new.
  9. Preserve food – Even if it is not something you grew, buy large amounts of in-season produce then go home and preserve it.  I have already made mention of this in a few of the other tips, that’s how important it is… this tip permeates so many of the other tips.  You can freeze, can, dry, smoke, cure, etc.  The predominate methods are freezing and canning.
  10. Use more beans – this has been a HUGE change and a HUGE benefit for us.  You should definitely increase the amount you use.  Beans are cheap, healthy and delicious.  They are much healthier and less expensive than meat.
  11. Frequent local farmer’s markets – my wife and I have switched to a predominately fresh, healthy, and organic diet.  We have found a farmer at our local market who sells organic produce, honey, maple syrup, butter, cheese, meats, etc. for cheaper than the grocery stores!
  12. Check “price per unit” – despite popular belief, when at grocery stores sometimes it’s actually cheaper per unit to buy 2 smaller items than it is to buy one larger portion.
  13. Pack breakfasts and lunches – do this everyday so you are not tempted to buy these meals “on the run”.  Make this part of your nightly routine every night so it becomes habit.  My wife & I pack our healthy delicious breakfast idea every week day.
  14. Pack healthy snacks – place these in small containers early in the week.  Keep some in your car, purse, office, man bag, etc.  This will keep you from purchasing unhealthy and expensive snacks form vending machines, gas stations, or other places.
  15. Do more baking – this kind of fits in with #8, but deserves it’s own description.  Set aside a little time each month to bake bread and healthy cookies then freeze them for the consumption throughout the month.  The ingredient to bake cost much less and will go much further than purchasing pre-packaged cookies and breads.
  16. Make fruit salad – using some of your pick-your-own fruits from number #7, combine delicious, fresh, snackable fruits into a Tupperware as a “salad”.  This is a great way to keep family members from purchasing and eating unhealthy/expensive snack foods.
  17. Eat more nuts – another great snack food.  We get an organic trail mix blend from our health food store for $3.79/pound.  This is another healthy and cheap alternative to expensive snack foods.
  18. Test generic brands – persistent and clever advertising has tricked us into thinking we need certain brand name foods.  Make sure you try generic brands at least once — with an open mind — before you decide how much you dislike them!  My wife and I eat predominately generic/store brand foods.  Also, generic health and beauty items, along with medicines, are often made up of the exact same ingredients as name-brand items.
  19. Organize your pantry – this is VERY important.  Most people waste a lot of food and money because it simply gets lost in the black hole that is their pantry!  I’m lucky because my wife and I are both pretty organized when it comes to our food stuffs, so we excel in this area and it is a blessing.
  20. Work together – like my wife always says… “Teamwork makes the dream work!”  Just like any other good thing in marriage/family life — saving money on groceries is much easier if both spouses are working together to reach the common goals of physical and financial health!
I am including this awesome list of Jabs Grocery Hacks in a printable .pdf format that you can print and keep in your purse and/or stick on your fridge.  Enjoy and happy hacking!

Using these tips and principles me and my wife have been able to cut our grocery budget from $400/month down to less than $250/month on average!  We have also lost a combined 60+ pounds and have never felt better.

Understanding and Improving Cash Flow

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One of the more powerful concepts to understand in the matter of personal finance is cash flow. Most of us can easily tell the difference between being confident & comfortable with our finances versus struggling with our finances.  Unfortunately, many people do not truly understand cash flow, nor do they grasp the crucial role it plays in regard to their own personal finances. When you understand the concept of cash flow and can then work to improve it… you give yourself tremendous flexibility which will undoubtedly bring to light many otherwise indiscernible opportunities.

What is cash flow?

Cash flow is basically your income minus your expenses. If your income is about the same as your expenses, you’re living paycheck-to-paycheck. If your income is higher, you’re financially okay. And if your income is lower, you’re accumulating debt. Very simple isn’t it?

And here is the beautiful part. Once you understand the basic components — income and expenses — you can begin to take concrete actions to improve your finances. And you can break down the problem even further by looking at reducing individual expenses and improving your income.

How to improve your cash flow

Reduce your expenses

The quickest way to improve your cash flow is by attacking your expenses; especially the recurring month-to-month type. The biggest bang for your buck is your mortgage, if you have one. Take a look at today’s best mortgage rates and see if it makes sense for you to refinance. Refinancing alone could free up several hundred dollars that you could use for other financial endeavors.

This process of expense reduction is even easier if you are already keeping a budget. If you don’t have one, you should start tracking your expenses and start work to create one. The key to success in expense reduction is doing all the little things that add up and trying to take one small step at a time. Don’t try to reduce your expenses by 50% — it will never happen. Challenge yourself to cut $50 a month or a $100 a month. Once you accomplish that, go for another $50, and so forth.

Increase your income

The other side of the equation is improving your income. This is harder than cutting your expenses, but there are things that you could do — even little things like moving your money to a high interest savings account helps you to earn more. Again, it’s all the little things that add up.

What about a other income ideas? You can basically break them down into a few categories:

  1. Earn more from your job — i.e., ask for a raise, get a promotion, work overtime, etc.
  2. Earn more outside your job. Here are a few additional income ideas for you to mull over.
  3. Make your money work harder — i.e., investing in the stock market, real estate investing, and other alternative investments, etc.

What to do with your free cash

So you’ve improved your cash flow, what should you do with the extra cash? Here are a few ideas:

  • Pay down your debt — e.g., credit card debt reduction, car loan, student loan, etc. As you do this, you’ll free up even more cash because you no longer have to pay all the finance charges and monthly payments.
  • Invest your money. Again, make your money work for you and continue to improve your cash flow.
  • Give. If you are in a position to give, charitable donation is also a great way to use your money.

I hope you enjoyed this article, and more importantly, I hope you walk away with a few ideas you can use to improve your finances.

Pinyo is the owner and primary author of Moolanomy Personal Finance blog. Moolanomy focuses on practical money management concepts, personal finance tips, and wealth building. If you like this article, please visit his blog. Lastly, you can leave financial question on Moolanomy Answers where Pinyo and other community members participate to provide you with answers.