Now that you’ve gathered your budget data and reviewed your spending, it’s time to take the next step: managing your expenses. This process isn’t about cutting everything. It’s about making thoughtful choices that support your financial goals. Start by looking at each expense line and asking yourself:
 

Do I truly need this?

Only you can answer that. If the answer is no, consider stopping, selling, or canceling that expense. If the answer is yes, explore one of these four strategies to help you manage it more effectively.

Reduce: Can I cut back?

Small changes can add up over time. Look for ways to spend less without sacrificing what matters most.

• Refinance your mortgage, car loan, or other debts to lower monthly payments
• Request a new appraisal to potentially lower your property taxes
• Switch to a more affordable cell phone plan and remove unused services
• Use less electricity, gas, and water through simple conservation
• Ask about discounts based on age, employer, or membership
• Save on transportation by keeping tires inflated, driving defensively, or using public transit

Negotiate: Can I get a better deal?

You might be surprised how often a simple phone call can lead to savings.

• Ask your landlord if you qualify for the same rate as new tenants
• Request to opt out of amenities you don’t use
• Call your credit card company or bank to ask about waiving fees
• Get quotes from competitors, then ask your insurance provider to match

Transfer: Can I switch to a lower-cost provider?

Shopping around can help you find better value for the same services.

• Compare prices for TV, internet, and phone plans. Providers often offer deals to new customers
• Consider bundling services to save
• Be open to switching providers for medical, dental, or veterinary care if it makes sense for your needs

Manage: Can I handle this expense more efficiently?

Sometimes it’s not about spending less. It’s about spending smarter.

• Consolidate debt to simplify payments and possibly reduce interest
• Plan meals around weekly grocery specials
• Buy in bulk when it makes sense
• Limit dining out and cook at home more often
• Trade babysitting duties with neighbors
• Share rides with coworkers to save on gas
• Avoid late fees by setting up automatic bill payments
• Join frugal living groups or online communities for tips and support

Once you’ve reduced or managed your expenses, you may find extra room in your budget. That leftover amount can go toward your “wants” or toward savings and retirement. Every step you take brings you closer to financial peace of mind.