Smart Ways to Cut Your Expenses

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A previous article was titled, “Don’t Cut Your Expenses,” and this time I am going to give examples of cutting expenses in a smart way.

Personal Expenses: With mortgage rates at record lows, now may be a good time to refinance your existing mortgage. You need to compare the savings with any upfront costs. If you can cut the length of the mortgage, this is the better way to go.

Delay major purchases, such as a new car or gigantic television. A car payment, along with insurance, gas, and maintenance can become a large percentage of a person’s income. If you can delay the purchase, you can save each month towards a larger down payment. The same applies to a TV, which should be paid for without having to use credit.

Business Expenses: Generally, if an expense can be reduced, without reducing quality or other necessary benefits, then it is worth investigating further. A perfect example is that you may be able to get a better deal by switching phone or Internet providers and save money.

Review insurance policies, such as health and liability coverage with your agent or broker. You want to make sure that you are receiving the coverage that you need with a good rate. As a caveat, make certain that you have the proper amounts and types of insurance so that you are covered adequately.

There are other advanced ways to save money and sometimes they even require upfront investments. This can include investments in technology, managing employees better, and even tax planning.