Reducing Your Outgoings

It may be necessary to reduce or eliminate some non-essential outgoings in order to get a better control of your money in the short term.

Do you have any of the following items:

i) Premium bank account - some banks offer premium accounts that include extras such as car breakdown cover, free overdraft and travel insurance.  The cost of these can vary from £13 per month upwards.  Ask yourself if you really need these bundled extras and if you don't talk to your bank about moving to a standard or basic account that doesn't cost anything.

ii) Gym membership - This can be a very large outgoing each month.  If you don't use it much or at all check how quickly you can cancel it.  Other options include:

Exercising outside for free on your own or with friends.  

Joining a lower cost gym.

Pay as you go if you only use the gym occasionally

iii) Takeaway food

Sometimes we just can't be bothered cooking.  We order a takeaway and spend £10 or £20 or more.  There is no harm in having the occasional takeaway.  How many times per week are you ordering takeaway.  Can you reduce from twice per week down to one?  Can you eliminate it altogether by having a night each week where you cook your own version of a takeaway.

iv) Alcohol and tobacco

Although we may enjoy either or both tobacco and alcohol it can have a bad effect on our health.  Reducing, or ideally  eliminating them both can have a positive effect on our health as well as our finances.  

The average cost of 20 cigarettes in £10.  Smoking 20 per day will cost £3650 per year.  2 bottles of wine per week can cost over £500 per year.  Imagine the difference to your health and finances by reducing or eliminating this outgoing.