Is it worthwhile looking at minising your expenses ?
Updated: Oct 29, 2020
What does it practically mean to minimise your expenses? Well, let's firstly dig deeper at the definition of an expense. In this series, when referring to expenses we're actually talking about what you consider your living expenses and the main reason you even need an income. So this covers everything from your electricity and renting/mortgage bills, to your car insurance and registration. The average Australian has somewhere between five and ten types of expenses. To practically minimise your expenses would mean to reduce the amount you spend on an expense whilst not sacrificing the quality or quantity that the expense provides. And here's 4 powerful reasons why you should consider doing it.
Nothing to lose except time. That's right, if done smartly, minimising your expenses should not impact the quality or quantity that that particular expense provides. It means getting the same product or service at a lower price.
Saving you money cumulatively, arguably for the rest of your life. If you achieve savings from a daily or monthly recurring expense, it means that your savings will be cumulative. Over the long term, say a year, this will amount to a substantial sum of money
Freeing up cash from expenses gives you a chance to focus on achieving more than just your basic living needs. The extra money could go toward your personal goals and ambitions, or a charity of your choice if you've a big heart!
Driving prices down by encouraging competition. The agencies responsible for providing your service or product are beholden to you. By doing your responsible shopping for the best value product or service, you foster a competitive environment amongst the agencies seeking to win you as their customer, because they stand to lose their business without you.
Stay tuned for practical methods on how to minimise your expenses.