33 Real Ways to Drastically Cut Expenses to The Bone

Do you need to drastically cut expenses, but you have no idea how and where to get started? If so, this post is for you!

My family also lived on a very tight budget for years, managing on just $24,000 a year in Puerto Rico. 

Although it wasn’t that easy at first, over time, we realized that with just some mindset shifts and discipline, it’s possible to cut down to the essentials without feeling deprived. 

Looking back, I am actually grateful for the financial challenges we faced. They taught us how to live frugally and still find contentment, even on such a tight budget. Now, I have the confidence that if things ever go south financially, we will be able to survive.

Indeed, cutting expenses to a bare minimum can help you become more financially responsible. You learn to let go of things, make sacrifices, and draw a firm line between needs and wants. I want to emphasize, however, that just by “tightening the belt” for the sake of saving a few bucks isn’t sustainable long-term. You really have to rethink how you live, spend and plan for the future. 

Let’s get into it—here are some real, actionable ways to cut your expenses to the bone. 

33 Best Ways for Cutting Expenses To The Bone

First, I recommend downloading this free printable to help you track your expenses or set a goal budget month by month. 

As you use it, you’ll notice that over time, you’ll find expenses to cut back or eliminate as you adjust to your new spending habits. This simple tool can make a big difference in helping you stay on track and see progress along the way.

Food and Grocery

For me, one of the best ways to save money and cut expenses to the bone is to focus on variable expenses, such as food and grocery. Here are simple steps to drastically cut expenses on food and groceries.

1. Meal Planning

Meal planning is a significant money saver for us, as it allows us to plan our meals around what’s available in our fridge and pantry, what’s in season, and what’s on sale. 

If you want to start saving money on food expenses, make sure that you get to consume the foods you have on hand before they expire, ensuring that nothing goes to waste. Unfortunately, Americans waste over 119 billion pounds of food each year. Utilizing what you already have is a great solution to reduce food waste.

Additionally, meal planning helps ensure that the family eats healthily and that we’re less tempted to order takeout.

2. Take a shopping list

It’s easy to overspend on everyday expenses, but one thing that helped me better manage our spending habits, especially when grocery shopping, is taking a list. I take inventory of foods we don’t have in our fridge and pantry and write them down. With meal planning in mind, I also list the ingredients I need to buy for the meals I intend to prepare for the week. This way, I am more laser-focused on getting what we need and shy away from items that we don’t need and that cost us money.

3. Opt for frozen instead of fresh fruits and vegetables

If it makes sense, opt for frozen fruits and vegetables instead of fresh to cut expenses. According to Piedmont Healthcare, frozen produce is just as nutritious unless preserved with sugar and sauces. So, if your favorite fruits and veggies are out of season, you could save money by buying frozen instead.

4. Make homemade food

If you need to cut everyday expenses, you’re better off making things from scratch than buying them. For instance, a 32-oz box of chicken stock at Walmart costs almost $3. But you could make a huge batch of chicken stock for next to nothing by boiling chicken bones from a rotisserie chicken. You can keep the stock frozen until you’re ready to use it, and your recipes will be much more delicious and flavorful without the added cost. I also love making homemade yogurt, breads, dressings, apple sauce and more.

Check out this list of 100 foods you can make from scratch to save money!

5. Grow your own produce

Want to make more money saving on food expenses? Consider growing produce at home instead of buying it at the stores. Food staples like tomatoes, green onions, and herbs can grow in pot containers, while other green leafy veggies like cabbages and lettuce can grow in your garden. You’d be surprised how much you can cut monthly expenses by growing your own food.

6. Bulk up your meat

You could further extend your grocery budget by being mindful of what you do with your meat. Instead of putting individual steaks or chicken pieces on each person’s plate, you can bulk up your meat by adding filling but cheap ingredients, such as beans and lentils. You can cut your meat portion in half by adding these canned beans to stews and casseroles.

7. Brown bag your lunch

Another great way to drastically cut expenses to the bone is to bring your lunch to work. You can ensure you are eating healthy, but also avoid the unhealthy and expensive food options at cafes and fast-food chains. According to Accredited Debt Relief, Americans spend more than $2000 yearly on lunches. But you can quickly cook and bring your own $4 lunch instead of spending between $10 to $15 daily on work lunches, saving you a lot of money. Put the money to better use better, such as paying credit card debt or inflating your savings account.

8. Cook and eat at home

Did you know that, on average, Americans spend $2,375 a year on takeouts and dining? If you think of it, that’s a great deal of money, and it could easily have paid a good portion of your debt or significantly increased your savings. Since food is one of the variable expenses you can control; you can drastically cut expenses to the bone by limiting eating out. Instead, opt to cook and eat at home. You can prepare healthier meals for the family and bond over foodwithout the shocking cost. Reserve dining out for special occasions.

9. Go generic

If you’ve always been loyal to specific brands but want to cut everyday expenses, it’s high time you switch and go generic! Store or generic brands are often of good quality but much cheaper than your usual name brands. Juices and milk, cereals, baking ingredients, and cleaning items are just some of the products that yield incredible savings when buying generic. And when they go on sale or you have coupons, consider buying generic items in bulk (especially the non-perishable ones) to save even more money.

10. Shop on Wednesdays

The day you choose to grocery shop could hurt your monthly budget. Beat the crowd on weekends and enjoy a more peaceful and quiet shopping trip in the middle of the week. Wednesday is the best day to make a trip to the grocery stores because there are fewer shoppers and fewer distractions. Also, most stores in North America start their sales cycle on Wednesdays, and it’s great to get first dibs on discounted items before they run out. Stores will also likely roll out manager specials and markdowns on Wednesdays versus the weekends.

11. Avoid the pre-cut items

How convenient it is to eat fruits immediately without peeling and chopping them, right? But if you’re committed to making more room in your budget and drastically cutting household expenses to the bone, then you have to make this extra effort. Pre-cut produce is a couple of dollars more expensive than buying fruits or vegetables whole and cutting, grating, or shredding them yourself.

Housing

According to the Motley Fool, housing costs comprise more than three percent of the average American’s household expenses. But if you want to start cutting household expenses, you need to take a long, hard look at your housing situation and see if you can implement any of these money-saving strategies:

12. Get a roommate

The fastest way to slash your housing cost is to share your room or apartment with another person (or two or three). You can also split other household expenses, such as wifi, power, and water bills whether someone rooms in with you for the short or long term. The money you save from household expenses can be allocated to paying off debts and loans or building up an emergency fund.

13. Learn to fix things 

Whether you own or rent a home, learning to fix minor problems, or taking preventive measures can help reduce monthly expenses. Many tutorials on YouTube and home improvement websites teach you how to fix leaky faucets or unclog drains. Instead of paying someone to do these tasks, do them yourself and save money. If you are renting, ask the landlord for a discount.

14. Downsize your home

Are your monthly payments making you “house poor“? You can drastically cut expenses to the bone by moving to a smaller home or by relocating to an area with a lower cost of living. Changing homes is a major decision, but if you’ve been doing your best to cut expenses as much as you can and still see no progress, it could be because you’re paying too much for your home.

Downsizing your home can give you a much-needed financial break since you’ll have a lower monthly mortgage payment or rental fee. Also, a smaller home makes it easier to clean and maintain, and you can also reduce utility bills.

15. Rent your spare room

Another way to increase your household budget allocation without much effort is to rent your spare room. If you live in a touristy area, you can list it on Airbnb and enjoy the extra money from the bookings.

16. Save up for a deposit on a bigger home deposit

Want to purchase a home and still cut monthly expenses significantly? Save up for more than twenty percent of the home’s selling price as your deposit and get away from private mortgage insurance, saving you more money. Consider a target amount as a home deposit and work until you’ve reached or exceeded it before buying a house. PMI costs are topped up to your home’s monthly payment, which means you’ll pay more than you should.

Insurance

Paying for insurance is non-negotiable for many, but you can still find ways to cut expenses and save money on insurance. Whether you’re paying for homeowners, life, or car insurance, these tips can help you return some money to your wallet.

17. Shop and compare insurance quotes at least twice a year

Many people find themselves paying whatever the cost of their auto insurance is, not knowing they could pay less and still get enough coverage. Shop for insurance policies once to twice a year by comparing quotes from different companies. You might be surprised how much money you could save if you switched companies.

18. Consider getting group insurance

Your workplace may offer group health insurance, which is much cheaper and more convenient than paying for insurance individually. The premiums will be deducted from your pay; sometimes, insurers may not even ask for proof of good health. This is a great and cheap way to afford insurance and can certainly help reduce expenses.

19. Bundle your insurance

Another brilliant way to save money on insurance is to purchase two or more policies from the same insurer. For instance, you could get your auto and homeowners insurance from the same company and lower your monthly payment instead of getting individual policies from different insurance companies.

Entertainment

You might be spending too much on entertainment, which hurts your monthly income. Fortunately, entertainment is also one of the variable spending categories that you can trim down to drastically cut household expenses to the bone.

20. Find free entertainment

It’s easy to blow hundreds of dollars to watch movies, attend concerts, or gather with friends to dine out and party. But if you want to cut everyday expenses, you have to substitute free or at least cheaper forms of entertainment that don’t cost money. For example, spend the night binge-watching movies on Netflix or HBO instead of going to the cinemas. Take nature walks, visit a public library, attend community events, and watch street performances to start cutting expenses on entertainment.

21. Cut cable

Are you still paying the cable bill? Ditch cable today, and you could save up to hundreds of dollars annually. Replace cable with streaming services such as Netflix and Hulu, and you can drastically cut expenses to the bone and save more money. But you also don’t need too many streaming platforms, as that can lead to subscription fatigue, and you will be spending more money instead of saving. Stick to just one or two streaming services you like and opt for the basic packages. Cancel all the other subscriptions you don’t need or like.

22. Potluck with family and friends

Hosting family and friends can be expensive, with all the dishes, drinks, and decor to prepare. Going potluck is a fantastic way to save money while entertaining your loved ones. Have each person or family bring a dish to share so you get to sample each other’s specialties. It’s also much cheaper than inviting everyone to a fancy dinner at a restaurant.

23. Make money from your hobby

Do you entertain yourself with a passion project or a hobby? Instead of making those brilliant crafts just for yourself, sell them on Etsy or your local fair and make money. Whether you enjoy upcycling things, making helpful stuff from scratch, such as bath bombs and scented candles, baking goodies, or gardening, there’s always a way to earn money from them.

Transportation

Transportation is another basic need that most of us spend a good deal of money on. But with flexibility and commitment, you can save money on transportation through these ways.

24. Ditch the second car

Some people might think it’s a stretch to give up the second car, but with some planning and flexibility, you can live with one car and not regret it. Selling your second car will give you instant money and help reduce expenses in the long run. You’ll spend less on car insurance, fuel, toll fees, repair and maintenance, etc. Also, you’ll be more mindful in planning your routine, so you’re less likely to take fewer shopping trips, for instance. Being a one-car family has so many more financial benefits than you probably imagined!

25. Carpool

Carpooling with colleagues and friends can help you save money on gas and parking fees. Make arrangements to carpool a couple of days a week, and you’ll realize you’re saving money on transportation costs. If you are going in the same direction for work, fetching your kids from the same school, or attending the same event, taking just one car is much more fun and frugal.

26. Wash the car yourself

Getting your car professionally  cleaned is a matter of convenience, but it comes at a price. And at a time when car-related expenses like fuel, maintenance, and repairs are soaring, handwash your own car if you want to save money. You need a car wash kit and some elbow grease to keep your car clean and shiny, but that also means allowing you to reduce expenses and save money.

Phone, Internet, and Cable bills

Reducing your phone, internet, and cable bills can significantly contribute to saving money. Here are some tips for each:

27. Rethink your phone plan

Chances are, you’re not using all the data and calls that came with your phone plan. Downgrading your phone plan makes financial sense if you want to cut costs and reduce your cell phone bills. Find a phone plan that matches your needs, or even consider a prepaid SIM to further reduce the cost of your phone bills.

28. Pay for a new phone upfront

Don’t get locked up in a phone plan contract that lasts 2-3 years, raising your phone bill a couple of dollars more for that period. Save up for a new phone and pay for it with cash. Or even better, don’t get sold out with the hyped new iPhone and get into debt to buy it. If your old phone works perfectly fine, you don’t need to replace it. You’ll thank yourself in the future.

Examine your internet speed needs

It’s tempting to avail yourself of the fastest internet speed offered by your provider, which costs more. You need to identify your internet speed requirements and buy the appropriate plan.. If you don’t work from home, you’re living alone or with another adult, and you spend most hours working outside, most likely you don’t need to spend that much on the internet. Your phone data might even suffice for checking emails, social media, and occasional virtual communications. Ditch the high-speed internet plan and settle with only what you really need, and you’ll save even more money!

29. Ditch the cable

If you’re still paying a cable bill, it’s high time you stopped. With the average cable bill now at over $200 a month, don’t you think spending this money on more worthwhile things is better? Use a streaming service for entertainment, like Netflix, which costs $15 monthly for a standard plan, and Hulu, which costs $8/month for a basic plan. Assuming that you already pay for phone data or home WIFI or both, you have plenty of entertainment options at your disposal, so cutting the cord is a wise move.

More Ways To Drastically Cut Expenses and Save Money

30. Get help managing your debt

Are you paying for some loans and credit card debt and want to make things easier for yourself? You can tap into InCharge Debt Solutions, a nonprofit credit counseling agency, and ask for assistance in debt consolidation. When you consolidate debt, you merge most or all your debt into a single one, and you’ll deal with one due date, due amount, and interest rate. Work with a credit counselor to determine the best payment strategy for your financial capacity and goals.

31. Learn to DIY

Instead of paying others to perform specific tasks, why not take it up yourself and save money? There are so many things in and around the house that you can do yourself. You can consult the internet for tutorials if you’re not an expert. You can stop spending money if you do your own gardening and landscaping, assembling furniture, and doing minor repairs. On top of that, you can also DIY personal indulgences, such as doing your mani-pedi, trimming your hair, and enjoying an at-home spa. When done professionally, these things are typically expensive, but you can learn to do it yourself and save money. 

32. Eliminate bad habits

If you have bad spending habits, drink a lot, and smoke, you spend more than most people. Not only are you spending on shopping sprees, alcohol, and cigarettes, but you also pay for the consequences that come with them. These unhealthy habits lead to severe medical conditions like lung and liver cancer, so expect a heftier medical bill. Even the cost of your health insurance is affected by bad lifestyle habits.

With 1 out of 10 Americans owing medical debt, getting out of these bad habits NOW will provide immediate savings and help unburden you with future expenses.

33. Invest in quality

You might not realize it, but you’re cutting everyday expenses and saving money when you invest in high-quality stuff from the get-go. These things are more expensive upfront, but they also provide a great return on investment, as they tend to last longer, be more comfortable, and are more flexible.

So what are the things of high quality should you spend money on?

• High-quality mattress – sleep is essential for a productive life, so where you choose to sleep matters a lot. High-quality mattresses will cost you money, but they’re durable and longer-lasting than cheap ones.
• Shoes – high-quality shoes are also not cheap, but they’re more comfortable and durable. These shoes can also improve your posture.
• Kitchen appliances – whether you’re buying a new fridge, microwave, or dishwasher, opt to get from proven and tested brands. You use these appliances daily, so it’s best to have ones that last a long time, so you don’t need to spend money on repairs and replacements.
• Electronics and devices – when investing in things like laptops, computers, cameras, and smartphones, always buy the highest quality you can afford. This is even more important if you use these electronics and devices to make a living.

Final thoughts

Cutting expenses to the bone requires commitment, discipline, and sacrifice. You’ll have to let go of the things you have gotten used to. You may pay for them because they are pretty or convenient, but drastic changes require drastic measures. You can immediately cut everyday expenses from food and groceries, transportation costs, utilities, eating out, and entertainment and save money.

With the tips above, you can get out of debt and become more financially stable. Adding other sources of income, such as a small business or side hustle, can further improve your cash flow. With the right mindset, financial strategies, and solid commitment toward your goals, I believe you can drastically cut living expenses and save money.

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