12 Simple Ways to Cut Your Monthly Expenses

2. The 24-hour rule

When you want to buy something you didn’t plan for, wait 24 hours before buying it. This waiting time helps you decide if you really need it or just want it in the moment. I bought a fancy kitchen gadget I just “had to have” that now sits unused in my cabinet. A 24-hour wait would have saved me $80.

Why it works: Studies show that waiting just one day cuts impulse buys in half. Ramit Sethi, who wrote “I Will Teach You To Be Rich,” points out that we forget most impulse purchases quickly, but their cost affects us for much longer.

3. Simple meal planning

Eating at home doesn’t mean cooking complicated meals for hours. Start by planning just 3-4 meals each week. Use simple recipes with ingredients you can use in multiple dishes to avoid waste.

Why it works: The Bureau of Labor Statistics says the average household spends over $3,000 a year eating out. Erin Lowry, who wrote “Broke Millennial,” says cutting restaurant meals in half can save about $1,500 a year without needing to become a chef.

4. Subscription audit

Take one hour to list every recurring payment from your accounts. Check all streaming services, apps, memberships, and any “free trials” you forgot to cancel.

Why it works: A study found that 84% of people don’t realize how much they spend on subscriptions – underestimating by about $240 each month. Burton Malkiel, author of “A Random Walk Down Wall Street,” says these small automatic charges are the biggest drain on building wealth over time.

5. Bill negotiation

Many regular bills can be lowered with a simple phone call. This includes internet, phone, insurance, and other services. Most people don’t know they can ask for better rates. I spent ten minutes calling my internet company and saved $35 monthly. That’s $420 a year for less time than it takes to watch a few TikTok videos.

Why it works: Research shows that 80% of people who call to negotiate their bills get them reduced, usually saving $25-$100 per bill. This one habit could save hundreds of dollars each year with just a few minutes of your time.

6. Cash envelope system

For areas where you always spend too much, try this: At the start of each month, take out cash and put it in labeled envelopes (like “Eating Out” or “Shopping”). When the envelope is empty, stop spending in that category until next month.

Why it works: Studies show people spend 12-18% less when using cash instead of cards. Dave Ramsey, who wrote “The Total Money Makeover,” says this method works especially well for breaking overspending habits.

7. Coffee shop treat

You don’t need to completely give up buying coffee. Just make it a special treat instead of an everyday purchase you don’t think about.

Why it works: David Bach, author of “The Latte Factor,” calculated that a daily $5 coffee adds up to over $1,800 a year. But as Carl Richards explains in “The Behavior Gap,” the problem isn’t coffee itself—it’s buying things without thinking or truly enjoying them.

8. Smart rewards

Don’t leave free money on the table. Use cashback apps, credit card rewards, and store loyalty programs for things you’d buy anyway—but never buy something just to get points. I had seven different loyalty apps I hardly ever used. Cutting down to just two that matched my regular shopping saved me $240 last year.

Why it works: Research shows that smart use of cashback and rewards can save the average household $300-$500 a year without changing shopping habits. But Chelsea Fagan from “The Financial Diet” warns that 60% of people actually spend more when trying to earn rewards.

9. Power down challenge

For one month, try to cut your electricity use with simple habits like unplugging devices, using power strips, and adjusting your heating or cooling.

Why it works: The U.S. Department of Energy says the average household can cut energy bills by 25% with simple conservation habits. Bill Perkins, author of “Die With Zero,” points out these small changes save money and help the environment.

10. Shopping list

Never go to a store without a specific list of what you need. This simple habit stops impulse buying and makes shopping easier.

Why it works: Research from the University of Pennsylvania found that shoppers with lists spend 23% less than those without lists. Grant Sabatier, who wrote “Financial Freedom,” says this simple habit was key to his early savings success.

11. Spending buddy

Find a friend who also wants to save money and check in with each other weekly about your spending. Having someone to report to makes you more likely to stick with your plans. I started texting my sister before buying anything over $100, and my spending habits got much better. Having to explain my reasons to someone else made me really think about my purchases.

Why it works: Research shows that having an accountability partner increases your chance of reaching a financial goal by up to 95%. Jen Sincero, author of “You Are a Badass at Making Money,” says the people around us strongly influence our money habits.

12. Practice gratitude

Take time to appreciate what you already have. This helps fight the constant feeling that you need newer and better things.

Why it works: Research published in Psychological Science shows that practicing gratitude reduces impulse spending by up to 25%. Vicki Robin, who wrote “Your Money or Your Life,” says gratitude is the best way to fight the pressure to constantly upgrade our stuff.