Will Cutting Small Expenses Really Make a Difference?

Will Cutting Small Expenses Really Make a Difference?

Many people have likely heard about how cutting small expenses leads to bigger savings. Others have reasonable doubts about whether this is true. The answer depends on which small expenses are being cut and how consistent those expenses were before they were cut. These are the expenses that can make a difference. However, if you have questions about bankruptcy, consider asking a Chattanooga bankruptcy attorney for help.


Looking at the advantages of cutting small expenses may help with deciding whether to try this strategy. One way to do this is to become aware of how this strategy works. Calculating your cash flow can give you a quick idea of whether cutting expenses would help you or not make much of a difference.

You can calculate cash flow by subtracting your monthly expenses from your monthly income. A negative number means you have a negative cash flow. What this means is you are spending more money a month than you make. A positive number represents a positive cash flow, meaning you make more income than you spend each month.

Many people have less incentive to cut expenses when they have a positive cash flow. Assessing your financial goals can help you decide whether cutting expenses could benefit you. Some financial goals like paying off a home may require cutting some expenses to move to the goal faster.

Negative cash flows tend to motivate people to start cutting expenses. Most people do not want to lose money faster than they make money. This can lead to financial problems.


If you have decided to start cutting expenses, starting small is often more manageable. There are several small ways to cut expenses that can build up to big differences. For example, many people think spending a few dollars on food each morning would not add up to much in terms of spending.

However, when you multiply a few dollars times the number of days in a year, this small expense adds up. Instead of buying that same small beverage or snack every morning, one alternative is to limit this to a few days a week or month. Some people can save money by finding alternative beverages to take from home.

There are several other ways to save money that can help. Living in the era of subscriptions, not everyone realizes how much those add up. If you have not used one of your subscriptions in a month, consider cutting this. Save on utility bills by using electrical devices only when needed.

Consider more affordable insurance for the time being, even if this means higher deductibles. Avoid credit cards. Try renting rooms instead of paying for apartments. Lastly, keep tracking your cash flow and notice the changes.


Bankruptcy is the last thing most people want to deal with. All you have to do is call us at Tom Bible Law today at (423) 690-7712 for a consultation about your financial situation. Our experienced team of Tennessee bankruptcy lawyers is prepared to help you manage bankruptcy. We can be found in the Tennessee cities of Chattanooga and Tullahoma.