One of the most important things about being a DGI is maximizing your savings rate. This may seem like a no brainer but the more money I save per month translates to more money that I'm able to invest in my Independence Fund. Reducing my monthly expenses is always something that is on the front of my mind. It's difficult to maintain the balance but one of the best things one can do for things shelves is to be aware of what they are spending on a month to month basis.
It has been 8 months since I first posted my Article about how I'm going to be working towards reducing my monthly expenses. I was asked by a frequent reader (Christian), on how my initiative has been going and they expressed interest in an updated article.
First off let me say that I have made some big moves to reduce my monthly expenses along with finally paying off my auto loan. This alone will save me an extra $152 per month which will translate right towards my savings rate. I have also cut a lot of extra expenses out of my life that are unnecessary. I have been really frugal with my grocery stores purchases and I tend to stick to only the essentials with very little snack foods or indulgences. I have also maintained my brewing of my own kombucha which has been extremely successful and has saved me over $50 per month.
Let's take a look at what my month to month expenses have been since writing the article.
- June 2017 $2,777
- July 2017 $2,095
- August 2017 $2,294
- September 2017 $1,809
- October 2017 $3,060
- November 2017 $2,909
- December 2017 $3,692
- January 2018 $2,746
- Expense Total = $21,382
- Average monthly Expenses $2,673
Overall I'm somewhat satisfied with this average. However, I do have a goal to bring this down to the $2,000 range. A few things that also help bring me into realization of having an elevated monthly expense rate was the large $1,200 tire and wheel purchase. I also had higher expenses due to the holiday season. I will be keeping a very tight wrap from here on out as I try to work towards my $2,000 a month goal. The big question is how am I going to get there?
I will be saving $152 from not having my auto loan payment and I also have plans to really question the purchases I decide to make and if they are absolutely necessary. I'm hoping to post another article 6 months out from now that will be more along the lines of where I want my monthly expenses to fall.
What are other people doing to reduce their monthly expenses? Does anyone have any tips for me that would be practical? Thanks for letting me know and I appreciate all input.