If you want to reduce expenses, the first thing you must determine is ‘where your money goes?’

Start from Scratch
Start by listing every single thing that you purchase in one week including their prices.  After two or three days it may feel like a pain keeping all the details however with a positive attitude you should enjoy the process.  If you think this record keeping is a chore it is more than likely that you will not maintain the records until the end of the week and will continue to be in debt.

Plug the Money Leaks
Once you have a good idea of what you are spending your money on, have a close look on the expenses that you incur that could be trimmed.  Common money leaks include fast food purchases, entertainment costs, the latest fashions or excessive hobby costs.  At first, this will be hard, however over time you will start to see the results.  If you don’t believe that you are ‘leaking’ money anywhere and every expense is necessary, take a closer look because all of us waste money – most of us just don’t realise it.

Allocate Weekly Living Expenses
Allocate an amount each week towards groceries and do not let yourself go over this amount.  Use a debit card if this helps you to maintain control.  If you allocate $150 per week for groceries and when you go through the checkout you have $180 of groceries you have to make choices of what you keep and what you leave behind.  This will not be a pleasant experience so it pays to shop wisely in the first place.

Be a Clever Shopper
Grocery shopping can be a major expense each week so it is important that you understand the tactics that the supermarkets use to maximise their income.  To start with, ensure that you purchase your groceries from the large supermarkets and not the local convenience store, where you will be sure to be hit with premium prices.  Buy any meat that you need in bulk at a cut price butcher and identify a local greengrocer who has competitive prices and will let you buy in bulk.

Generic brands can save you a lot of money and while their packaging looks boring, they can lead to quite a cost saving.  The same applies to items like dog food. Your dog doesn’t necessarily need all the gourmet foods that are advertised on our television sets.  Give your dog some of your leftovers or buy a less expensive brand of dog food.

Supermarket chains are clever and they will never place the essential items that you need in the one place.  They want you to walk up and down every isle looking for what you want, with the hope that you pick up other items as well.  The placement of items like milk, bread and eggs separate from each other and near the back of the store ensures you walk through many isles.  You will also notice that anything at eye-level will be more expensive than they products above or below.  Eye-level shelves are prime positions and food producers pay the store for this advantage.  The biggest trap however is the placement of treats like chocolates and chewing gum near the checkouts.

Avoid where possible buying your groceries on credit card, particularly if you are not paying your complete credit card off each month.  By using your credit card and not paying it off, you will be paying interest on every single item that you purchased.  The best advice is to use cash or a debit card.

Always Shop with a List
Every time you shop, ensure you have a list of the groceries that you require.  While it can take some time to put together a list, it will save you a lot of money…time well spent.  List what you require in groups, like cereals, dairy or bathroom goods.  Put your list onto a computer and you can print it off and check off the items you need as you put them in your trolley.  By shopping with a list, you should only need to shop once a week.  By planning meals and putting a shopping list together, you should only need to shop at the supermarket once a week.

Buy Meat and Vegetables in Bulk
As mentioned above, buying meat, fruit and vegetables in bulk can save you a lot of money in the long-term.  If you have enough like-minded friends, you may be able to set up a cooperative where you can bargain for better prices for bulk buying.

Frozen Foods
It is advisable to avoid the frozen food section of the supermarket.  Frozen foods are often quite expensive and they are normally less healthy (higher in fat and salt) than home-made meals.  On the weekends, make your special treats like pizza, sausage rolls and pies and do a double batch so that you can save some in the freezer for the next weekend or snacks during the week.

Petrol
Choosing the right day to completely fill your car with petrol each week can save you hundreds of dollars each year.  Allocate petrol money each week and then fill the car rather than just putting in $10 or $20 each time.  The best days with the lowest prices are usually Monday, Tuesday and sometimes Wednesday.