If you want to lower your cost of living, some people would tell you to move. Certain parts of the country don’t cost as much to live in as others, and moving might seem like a viable option.
Still, you might be in a position where you don’t want to pull up stakes and move to a different city or state. Perhaps you have a job you enjoy or friends or family where you currently live that you’d have to leave .
In this article, we’ll go over three ways you can lower your cost of living while remaining in your desired location.
1. Pay Off Debt
Many people have debts, and there’s nothing wrong with that. However, some debts are high-interest, and those are harder to carry than others.
Paying off your debts that carry high interest rates is one way you can reduce your month-to-month living expenses significantly. Often, your credit card debts are the ones that will cost you the most as they typically carry interest rates in the double digits.
You might look into the debt snowball vs. avalanche payoff methods to determine how best to pay off your debts. Each strategy has benefits, so it’s helpful to study both techniques to see which one makes more sense for your unique financial situation. With your high-interest debts paid off, you’ll be able to stretch your take-home pay much further.
2. Your Budget
You should think of budgeting as the financial plan you enact to help you pay for your daily life as diligently as possible. If you look closely at your budget, you’ll often find ways to spend less money that you might not have noticed before.
For instance, you might consider getting rid of your car and using public transportation if you live in a city where that’s possible. Owning a vehicle is convenient in some ways, but you have to pay for gas, upkeep, and insurance, which can raise your cost of living significantly. Paying for public transportation instead is almost sure to reduce your expenses.
Another way to reduce your expenses is to eat out less or look for coupons when shopping for groceries. You can also get generic food items rather than name-brand ones when you go on a grocery run.
If you weatherproof your home, it could lower your energy bills and thus, your monthly cost of living. And it’s not that hard to do. Just go around your house and check the walls and ceiling for drafts. Weatherstripping can stop up the cracks where cold air gets in during the winter and warm air during the summer.
You might also wear warmer clothing indoors during the winter and turn down the thermostat. Reducing the indoor temperature by one or two degrees can help reduce your monthly heating bills.
Lowering Your Cost of Living is Possible
Most people find that lowering their cost of living is not as difficult as they imagined. You can focus on your high-interest debts and eliminate them. You can look at your budget and find ways to reduce your expenses. You might get rid of your car and the costs that go along with it, or you could eat out less and use coupons when you go grocery shopping.
Weatherproofing your home should help reduce your energy bills, and you can wear warmer clothing and lower the thermostat during the colder months. If you put all of these ideas into action, you’ll soon find that you’ve lowered your overall cost of living without having to move.