Actually useful tips to Cut Costs & Structure Your Spending In Life


Cost-cutting is always a celebrity topic in every society of the world. After all, money is the first love of humans, and if anything can save it for them, they are more than ready to work on the ways. As a part of the wisest species on the planet, you should agree to this point. Right?

Here are some of the most successful ways to cut costs and frame a suitable action plan for spending.

Embrace self-discipline

Yes, before you start cost-cutting, it is vital to work on your personal financial habits. Otherwise, what is the use of a good change? It will lose its possibility of the future due to your weak willpower.

Benefits of following self-discipline in financial life are –

  • You can achieve targets on time
  • You learn the skill of smart money management through patience
  • You attain future security for yourself and family members
  • Your debts remain in control which helps to qualify for financial services at the time of need

Never do buy now pay later shopping

The expenses that accumulate for later payment only get worst with time. If you want that the coming days, do not see a financial risk, then avoid ‘buy now pay later’ method. Such type of shopping makes you more careless because there is no need for instant payment.

The concept – In this type of shopping, the buyer buys the products from a store but in place of immediate payment pays later in instalments.

  • The significant drawbacks of buy now pay later shopping are –
  • High late payment fee
  • The provider decides the due date of payments
  • Negatively affect future loan applications

Categorise expenses according to popular 50/30/20 rule

Cost-cutting is also about the smart use of money. When you try the number of costs, you tailor the financial habits to act in a certain way. The categorisation is the first rule of prioritisation. It makes the distribution of income easy and clear. Know how this rule works.

The 50/30/20 rule demands to divide the income three categories:

  • Need – 50% income that you get after deducting tax should go for necessary expenses like mortgage payments, bills, utilities, grocery etc.
  • Wants – 30% should go for your desires like shopping, movies, holidays etc.
  • Savings – 20% as you know should be added to your nest egg to make it larger

Take an example here – Your income is – £10,000

According to the budgeting rule of 50/30/20 here is the segregation

For needs – £10,000 x 50/100 = £5000

For wants/desires – £10,000 x 30/100 = £3000

For saving – £10,000 x 20/100 = £ 2000

Try minimalism

Of course, the cost-cutting can be implemented successfully only when you bring a considerable change in your lifestyle. Minimalism is the art of living with basic things. No added luxury becomes part of your daily routine.

Why buy new clothes when you already have many? Similarly, in place of purchase, several cosmetic products keep only one that is friendly to your skin and health. One body lotion, one-night cream, one foundation that matches to your skin, one lipstick that goes with every dress etc., is perfect. The precise idea is, try to live with the minimum number of things.

Countless people across the globe use this method to do drastic cost-cutting, and you know what that makes a big difference.

Do smart debt management through cheaper deals

The debts suck a large part of our income. To fulfil the purpose of cost-cutting, it is necessary to work on a practical tip that can bring a significant and positive change.

Here are some points that may help you understand the need for smart debt management –

  • If you have multiple scattered debts go for debt-consolidation to get one instalment in for all debts on a fixed rate. It suddenly reduces your expenses.
  • Found the cheaper deals on mortgage; explore the remortgage options with lower rates. Take help from a broker to find something suitable for you. Look for the broking companies with a local presence. If you are in Edinburgh, look for the mortgage broker in Edinburgh. The mortgage payment is the essential part of your housing expenses, if you tackle it well, saving a substantial amount it possible.
  • Do not max out your credit card. The high-interest rates of the credit cards take monstrous shape in a short time. Those who use their credit cards up to the maximum limit always get in big trouble later. For cost-cutting, you mustn’t let the cost increase.

Say NO to expensive weekend parties

We do not need any reason to go to a party; perhaps this is the reason that most of us go for weekend parties. The late-night car rides, music, food all are so exciting and relieving. Yes, of course, we deserve it.

After all, after a long week and hard work, it is our right to feel happy and get pampered with desirable things. However, in a rush to use every second of a weekend well, we spend a lot of money on parties and later face a financial crisis.

It is not harmful to go for a party, but the excess of everything is terrible. Spending too much on the weekend or any parties is not suitable for your health and financial health.


All the above points are practically applicable in our day-to-day life, and if you follow them, the goals of cost-cutting can be achieved. As the basic rule, make rules and follow them. Distraction from the efforts is only responsible for making the situations worst. Try hard, and you are sure to succeed because money is quite an amenable creature. You take it in the right direction, and it will obey you. Nothing is difficult or impossible with strong will power.

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