The cure for lack of money. Economic Council

Andrey Zinkevich - that in order to optimize costs, one should not cut salaries, but refuse unprofitable clients

IT tools used by Andrey Zinkevich

• Evernote
• Megaplan
• Disqus

The difficult economic situation is forcing many entrepreneurs to sharply cut costs. But cutting cuts is different - there is optimization of non-strategic costs that is useful for business, and there is disastrous sequestration of cost items important for the development of the company. The founder of the “Attracting and Retaining Customers” project, Andrei Zinkevich, spoke about how to reduce costs without demotivating key employees and not compromising the quality of the product.

Entrepreneur, internet marketing specialist. Founder of the project "Attracting and retaining clients". Co-Founder and Community Marketing Director "Directors' Club". Author of several books on Internet marketing. Lives in Poland.

Think about expenses

Previously, when asked how to reduce company expenses, I would have answered without hesitation with my favorite quote: “Don’t think about expenses, think about income!” And I would suggest, first of all, to start with a review of the customer generation and sales system, and only then focus on reducing unnecessary costs.

But today is a little different time.

Many CIS countries, including Russia, are currently experiencing a serious economic crisis. The collapse of national currencies ranged from 50% to 300%, and along with this, household incomes fell. All this together dealt a very heavy blow to small and medium-sized businesses.

Therefore, in a situation where the number of customers and orders is falling sharply, it is time for any company to think about cutting costs. But this must be done in such a way as not to cause serious damage to your business, clients and employees.

Is it possible to cut costs quickly and painlessly? Let's talk about this.

Strategic and non-strategic expenses

Bob Phifer, author of Costs Down, Sales Up, has an excellent classification of costs. He divides all expenses into strategic (which ensure the company’s profit) and non-strategic (which ensure the work process, but do not generate income).

Phifer includes marketing (attracting new and retaining old customers) and bonuses for sales managers as strategic expenses. That is, targeted investments aimed at increasing the company’s sales and profits. Non-strategic expenses include office rent, purchase of office equipment and office supplies, salaries of administrative staff, etc.

outperform your competitors in terms of strategic spending, ensuring these expenses are met in any environment, in both good and bad times;


ruthlessly cut non-strategic expenses, bringing them to the absolute minimum.

But, in fact, many businessmen do the opposite. Let's look at the three most common mistakes that entrepreneurs make when cutting costs.

Three most common mistakes
while reducing costs

The first mistake is cutting salaries

Cutting staff salaries is the first thing that comes to mind for many entrepreneurs. Why shouldn't this be done? At a minimum, because the employee will become angry with the manager, and his motivation will fall through the roof.

A salary cut always leads to the fact that during working hours the employee will be busy not solving the company’s work issues, but looking for additional income and a new job. And as soon as he finds something more or less suitable, he will immediately leave you

It makes more sense to think about cutting staff, whose functions can be easily and painlessly outsourced, than to cut salaries for key employees. The latter will always remember that you care about them and will try to do everything possible for the growth of the company.

Mistake two - reducing investment in marketing

The second common mistake is reducing investment in marketing. Why can't this be done? A study was conducted in the United States that found that those companies that did not cut their marketing budget during the financial crisis ended up becoming leaders in their industries. The same companies that cut back on marketing investments lost both their market share and significantly weakened their competitiveness.

It is necessary not to reduce, but to optimize costs. And to do this, redistribute the marketing budget to the most profitable channels, abandoning ineffective ones.

Mistake three - deteriorate the quality of the product

Deteriorating quality means passing a death sentence on the product. The market has changed, competition has become tougher, and the client has become more educated. Today the client understands that he is a king. And it is he who makes the decision. Therefore, as soon as the quality of your product no longer suits him, he will immediately turn around and go to your competitors.

Instead of sacrificing quality, consider different pricing schedules and options for the customer. Want to reduce shipping costs? Increase your minimum order amount for free shipping. Does the client want to pay you less money? Reduce the number of services provided. But never, under any circumstances, degrade the quality!

In addition, there are effective ways to reduce costs, which we will discuss below.

Seven ways to quickly and effectively cut costs

Method one - refusal of the office

When I advise you to give up the office, many people look at me in bewilderment and twirl their finger at their temple. But let's face it. If your office does not simultaneously serve as a warehouse, showroom and sales point, then you can easily do without it.

Firstly, office rent and its maintenance is one of the most significant items among non-strategic expenses. Just calculate how much you could improve your financial situation if you removed the costs of renting and maintaining an office (at least partially) from your cost items.

Secondly, you would save your employees a lot of time (which they spend getting to and from work) and money (lunches, coffee, transportation, etc.).

Of course, many entrepreneurs are not mentally prepared for such an approach. After all, they immediately have a question: how will the staff work without my control?! I’ll answer the question with a question: why do you even need employees who work only under pressure and only when they have a manager over their heads? Fire them!

Think about management by goals (I recommend Brian Tracy’s book “Motivation”), write down a strategy and step-by-step tasks for its implementation for each employee, use programs that allow you to collaborate and track the status of each process and task (Megaplan, Bitrix, Trello ,Basecamp). Finally, tie employee salaries to results and meeting goals.

After all, I hope you are interested in the results?

Method two – outsourcing

Outsourcing is an effective way to significantly reduce costs. For example, if you have a lawyer on your staff, then you bear the costs of his salary and arrangement of the workplace. But if your business does not need significant legal support, then you can safely refuse a lawyer and enter into a service agreement with a good law firm.

There are several advantages. firstly, if something goes wrong, you can always file a claim with the company serving you, as well as apply penalties. Secondly, if your company also provides services that can be useful to a law firm, you can simply negotiate a partnership and barter exchange. Thus, eliminating unnecessary costs.

Method three - percentage and bonus for completing tasks instead of betting

The third way to quickly and relatively painlessly reduce costs is to transfer employees from a fixed rate to a percentage. But before you do this, you will need to familiarize yourself in detail with the functions and responsibilities of each employee.

If, for example, a sales manager or marketing specialist can be given a percentage of sales and plan fulfillment, then this will not work with an accountant or client manager. Calculate how many target actions the accountant performs (number of entries, preparation of reports, filing documents with the tax office, etc.) and set payment for each action or for achieving the result.

You may find that you don't need a full-time accountant (especially for small businesses). Then you can safely offer him to work for you and run several more companies.

Method four - abandoning ineffective marketing channels

In times of crisis, one of your key tasks will be to carefully analyze the effectiveness of each marketing channel. Look at achieving goals, ROI and payback period, the number of potential clients. Based on the received analytics, abandon unprofitable and unprofitable channels and redistribute their budget to more effective ones.

Method five - refusing unprofitable clients

You also need to be able to fire clients! And a crisis, like nothing else, is suitable for this.

Look at the clients that take up 80% of your time while bringing in only 20% of your profit. Do you really need them? Maybe you should focus on working with key clients and offer them several additional services or products?

Just think about what would happen if you could free up 80% of your time resources and give up clients who are fooling you and ruining your nerves? I am 100% sure that after doing this you would find a significant portion of the costs that you can eliminate.

Method six – deferment of payments to suppliers

Consider which supplier your company is a serious and important customer for, and then contact them and ask for an additional deferment of payments. Many people are afraid of losing customers, so there is a high probability that your suppliers will agree to make a concession.

Method seven - audit non-strategic expenses

This is the easiest way to quickly reduce your company's costs. Analyze what the company's money was spent on in the previous month. Buying coffee and cookies, office expenses, consumables, calls on personal issues from a work number - all this can be safely cut down without demotivating employees.

Just announce to everyone that next month the budget for such items will be cut by 50% - people will understand this, especially if this does not affect their salaries.

The main task of any company or enterprise is to make a profit. However, the amount of income depends not only on the amount of goods produced and sold or services provided. The profit margin is also significantly affected by the company's expenses. And the higher they are, the correspondingly less profit. Therefore, one of the fairly common methods of increasing profits is reducing costs.

But exactly what costs can be reduced to avoid problems in the future?

What to do first?

The decision to reduce company expenses is a fairly important step, the implementation of which should be approached with all responsibility.

First of all, you need to make a complete list of absolutely all expenses. No matter how minimal and insignificant the waste may seem, it should certainly be on this list. Only if you have complete information can you make the right decision.

It is important to understand: it is simply impossible to significantly reduce the costs of an enterprise.

The compiled list of costs will need to be divided into two parts:

• The first is important costs that are necessary for the development and growth of the company. Lack of funding can lead to the collapse of the enterprise, so you should not cut such expenses.
• The second part is those costs that should be reviewed, and it is likely that some of them will be reduced.

Key expenses you can cut

In any company, the list of expenses is significant. But with the right approach, almost all costs can be reduced to a minimum level. In this case, neither productivity nor quality will suffer. The main thing is to analyze everything well, think it through and draw up a clear action plan.

One of the mandatory expense items. But if desired, it can be shortened. You should not immediately think about how to circumvent the law. This is fraught with significant consequences and fines. Accordingly, it is unacceptable.

In fact, modern legislation is quite loyal to entrepreneurs. There are a huge number of different tax benefits. Having carefully studied the current regulations, you can find an article in accordance with which the tax rate can be reduced and some benefits applied.

Product cost

How can you reduce the cost of goods?

First of all, you should review the list of suppliers. In most cases, entrepreneurs manage to find a new supplier who offers the necessary raw materials at a more reasonable cost.

Another method of reducing costs associated with production is to reduce the number of defective products. Essentially, resources and raw materials are wasted on producing a product that will never be sold, but will simply remain in a warehouse or be thrown away.

The third method of reducing costs is saving. Saving raw materials necessary for production, saving resources (electricity, water).

For example, modern equipment is less energy-consuming than what was produced 20-30 years ago. By investing in plant modernization, you can increase productivity while using fewer resources.

Today, many companies rent offices, production workshops and warehouses. Analyze how effectively the rented space is used.

It is not uncommon for a warehouse to be only a third full. But at the same time, you continue to rent a large premises “in case of increased production.” But will there be an increase?

In addition, the location of the premises is also important. Think about how important it is that your warehouse is located in the central area of ​​the city. After all, renting a similar premises on the outskirts will cost several times less. The same goes for the office. If you do not have visitors, and all communication with clients occurs through email and phone calls, the office can be located anywhere, not just in a business center. And it is not at all necessary to rent an entire floor if you only need a few offices.

Service

Service maintenance is a fairly common procedure that many companies offer today. It applies to everything: water coolers, computer and office equipment, vehicles, machines and more.

Sign a service agreement - this way you will pay a small amount monthly, and specialists will regularly inspect the equipment. And when the need for repairs arises, all this will be done in an extremely short time and at a significantly reduced cost.

Get rid of excess

Machines, equipment, vehicles - all of this is listed on the company’s balance sheet and requires periodic repair or inspection. But if all this does not bring any profit, a logical question arises: why is it necessary?

Reduction of personnel and wages

Check how efficiently your employees are working. Quite often it is possible to reduce a company's costs by making some cuts. There are certain positions that do not affect the production process in any way.

For example, a company that has only a small computer network of 5-6 computers does not necessarily need to hire three system administrators. One person can do the job. Similar examples can be found in almost any area (accounting, secretariat, human resources department, and so on).

As for salaries, you should act more carefully here - otherwise you risk simply losing employees. However, a system of fines (for idle time, uncompleted work or lateness) will help improve the work process and save some money. But along with fines, a system of bonuses should be introduced (for overtime, good performance or some achievement). In this case, your employees, on the contrary, will be motivated and try to improve their performance.

How to reduce expenses correctly?

When planning to reduce company expenses, you need to clearly plan your actions. If you cannot cope with such a task yourself, hire an outside specialist. He will help you identify the main sources of costs and draw up a detailed action plan aimed at reducing costs.

Try to control all innovations. That is, if you plan to reduce energy consumption, identify a person who will control this process and ensure that the company’s personnel strictly follow all instructions. Of course, this applies not only to electricity at any level; strict control must be exercised in any department.

Introduce unscheduled checks - this way your employees will follow instructions constantly, and not just when they are being observed by a supervisor.

There is a question that worries most entrepreneurs, company and enterprise managers. When will the effect of the introduced innovations be noticeable? When will costs go down?

It should be understood that this is a gradual process. Yes, the difference in spending will be visible after a month. But most likely, this difference will be insignificant. An integrated approach, strict control and strict adherence to instructions will give the desired result. But it will become noticeable only after 3-5 months. Much depends on which cost-cutting methods you decide to use.

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How to reduce costs in an enterprise

The owners of any enterprise have a primary task - to increase the efficiency of the business and develop it, while developing a plan.

Currently, there is no comprehensive solution on how to reduce costs; most tools allow you to manage only one of the components of the business.

Some businessmen believe that the issue of how to reduce costs in an enterprise. can be done by spending funds from the company's cash register or current account. This is a common mistake. Payments to the cash desk are made after a previously reached agreement and previously assumed obligations. If the manager manages only payments, he will soon realize that there is absolutely not enough finance. To prevent this from happening, in no case should you increase the credit resource, but rather all possible income and expenses of the enterprise. This means you need to draw up a financial plan - short-term (for a month) and long-term (for a year) and update it periodically.

When planning financial expenditures, financial discipline must be strictly observed. Managerial decisions are violated only in extreme cases. The manager is always the main one in the process of how to reduce costs.

The manager must have accurate information about the enterprise. Based on it, he makes decisions about management influence. If the company measures the cost elements of repairing defects, then as part of the company's cost reduction program, it becomes possible to set goals for the company's divisions. Monitoring the implementation of goals is mandatory.

In order to carry out systematic work on the issue of how to reduce costs, the enterprise will have to implement a system of financial planning and control. Such a system has a positive effect in that the company no longer receives excess credit resources, which means there is a significant saving on interest on payments.

Reducing costs in an enterprise can be done as follows:

— conduct a detailed inventory of the enterprise’s expenses (a task for the financial and economic department);

Read also: Storage period for vacation orders

— determine a category for each expense item (high priority, priority, allowable expenses, unnecessary expenses), after which an analysis of the amount of costs for each category and an analysis of the consequences of eliminating unnecessary expenses is carried out;

— completely stop financing unnecessary expenses if the goal is to minimize business costs. In a critical situation, spending on an acceptable category is sharply limited.

Having done all this, you can move on to the next stage. For this purpose, a working group is formed from the heads of the company's departments. At the meeting, factors that influence the occurrence of certain costs are discussed and methods are prescribed to reduce business costs for each item. Typically there are 4 areas of work:

1. Analysis of the validity of production technology and selection of a more economical one

Constant cost analysis is required:

— does the technology meet optimal standards;
— appropriate loading of production capacity, rhythm, absence of interruptions in production;
— elimination of failures in the shipping system, because storage is much more unprofitable, and full warehouses lead to a stop in production;
— whether the enterprise’s personnel comply with production technologies;
— what are the fluctuations in production volumes, are they accompanied by adequate changes in the number of personnel and wages.

To completely control expenses. a full management cycle is needed: create a regulatory framework, make forecasts, correlate standards with the plan and monitor costs.

2. Procurement management

— centralize procurement;
— reduce purchase prices;
— create a supplier base;
— introduce personal responsibility for purchasers for the cost of procurement costs;
— detail the procurement budget by agent, quantity, item;
— carefully prepare tenders – draw up documents correctly, determine the transparency of the selection.

3. Optimize the number of staff and wages fund

Reducing staff is a painful, but very effective way to reduce costs in an enterprise. When a company grows, it invariably attracts a large number of specialists. If it grows too big, a significant portion of its income will go into payroll.

Remember that a large number of people increases the company’s losses in wages and social contributions, and also increases the cost of maintaining jobs. It is necessary to analyze which departments are really needed and which are not, which will reduce costs in the enterprise. That is, in order to optimally reduce costs, the company needs to remove excess personnel. But it is worth cutting only truly unnecessary personnel, and not instructing department heads to reduce the number of people by a certain percentage.

4. Optimize business processes at the enterprise, reduce non-production losses and increase labor productivity in departments

The enterprise must use the concept of “Lean Manufacturing”: any actions are considered from the Client’s point of view - whether they create value for him or not. This is how you can distribute all the activities of the enterprise:

— actions that will add value to the final product;
- actions that do not create value, but are inevitable;
- actions that have no value.

If you analyze the activities of an enterprise from the Client’s point of view and at the same time solve the problem of reducing costs, the results will be excellent. By switching to Lean Manufacturing, an enterprise, using its own resources, significantly increases the turnover of funds, frees up personnel to solve other tasks, shortens the production cycle, minimizes losses and improves product quality.

The implementation of these measures is entrusted to specialized units, and these units must provide a plan, how to reduce costs in an enterprise. with expected results and responsible persons.

Ways to optimize and reduce costs in an enterprise

Costs are an integral part of any business; without them, an enterprise can neither develop nor simply operate. However, to ensure profitability, it is necessary that expenses be effective, that is, every ruble spent brings a profit. By setting such a goal, the manager will be able to protect his company from unproductive costs. However, not every CEO sees optimal ways to reduce costs .

Three basic operating principles that will help you avoid unnecessary spending

Planning

Some directors mistakenly believe that reduction of costs in the enterprise will happen if they begin to strictly control the spending of money that is already in the account. At the same time, no attention is paid to where this money in the account comes from. If you manage only payments, the enterprise will soon experience a chronic shortage of funds, and if loans are actively attracted, then bankruptcy is not far off. Cost Effectiveness depends on how accounting is done and expenses. and income. Moreover, both of these articles need to be planned in advance. It is advisable that the manager always have before his eyes the planned amounts of income and expenses broken down by months, quarters, and years. Some investment projects may seem costly in the short term, but very profitable in the long term.

The manager must have objective, and not embellished, information about his enterprise. The ability to control costs appears from the moment they begin to be taken into account. Many enterprises have developed the following cost reduction strategy. a cost reduction department and its employees are being created

• study factors influencing costs;
• check the compliance of technological processes with the standards that were laid down during the design of the enterprise;
• calculate the optimal load of production workshops;
• find out the reasons for interruptions in work;
• monitor the presence of failures during shipment or acceptance of goods;
• identify the stocking of the warehouse, etc.

Then it happens cost analysis and optimization. that is, employees outline a program to reduce identified costs, and the manager reviews and approves it. The points of such a program could be: centralized purchase of basic raw materials, more efficient work with clients, etc.

Discipline

All cost reduction strategies are approved by the manager and are reflected in the enterprise budget. Violation of adopted decisions is possible only in exceptional cases. Financial services should be responsible for enforcing this rule. It is their responsibility to monitor the reasonableness of expenses and cut off unnecessary expenses. Strict financial discipline must be confirmed by an order from the manager. which states that decisions on expenses are made by one or more responsible persons appointed by the director.

Three ways to optimize costs

Express reduction

With this method of dealing with costs, you need to immediately stop paying expenses for some items. To do this, analyze everything ways to optimize costs and find out the possible consequences. Costs are divided by importance into:

1) High-priority ones are the purchase of raw materials, payment of salaries to key employees, etc. Without such expenses, the company will stop its activities.

3) Acceptable - sanatorium treatment and other benefits for employees. Financing is desirable. but it is not necessary to save, especially if the company does not have available funds.

4) Unnecessary - for example, payment for vacation to the manager. The operation of the enterprise will not be affected in any way by stopping the financing of unnecessary costs.

If express is selected cost reduction strategy. then funding for the last category is stopped, and expenses for the third are sharply limited. It is not advisable to reduce expenses in the first two categories.

Rapidly reduce enterprise costs

1) Saving on raw materials and supplies. Ways to optimize costs for this, the most expensive, item may be different. The most effective way is to review contracts with suppliers. Cooperate with large companies that can offer lower prices and deferred payments.

2) Cost analysis and optimization for transport, telecommunications, electricity.

If the company’s activity is not the provision of transport services, then the transport workshop can be outsourced. You also need to consider the possibility of reducing your vehicle fleet and contact a logistics company that will help minimize transport costs.

The most common ways to reduce costs on electricity: control of energy consumption, limited lighting at night, transition to energy-saving lighting and equipment.

Communication costs will be reduced if the list of employees using mobile communications paid for by the company is reduced. Reduce the number of telephones with long-distance access, limit Internet access, and negotiate with a large telecommunications operator about package service.

3) Reduction of personnel and wage fund. Consider the need for some departments. promotes the dynamic development of outsourcing and freelancing. Many company functions can be transferred to third-party companies and specialists. In addition, various recruiting organizations make it possible to reduce unqualified personnel. For example, technical equipment can be “rented” several times a week for a couple of hours. More democratic way to reduce costs- cut wages, but provide employees with social benefits: free food, expanded health insurance, etc.

Systematic reduction

1) Investment management. Investments in the purchase of new equipment and the introduction of modern technologies are necessary for an enterprise to maintain its competitive advantages. But when deciding to invest in any project, do not forget about the previously set task - increasing cost efficiency. Investment projects must undergo strict selection. First, the department that needs the project must justify its feasibility. Then it is advisable to invite independent experts who will carry out a technical and economic calculation and help select the most promising and profitable from several proposals.

2) Procurement management consists of systematically searching for profitable suppliers.

3) Business process management. This work is hampered by stereotypes that have developed since the times of the USSR. Most of today's technical specialists are asked: how to achieve reducing costs in the enterprise. They will answer: buy new productive equipment. Meanwhile, business processes have long undergone revolutionary changes. For cost efficiency Some enterprises use lean thinking technology. The bottom line is that costs are assessed from the client’s point of view: whether he will agree to pay them. The buyer would not pay for defects and rework, overproduction, movement of goods, inventory, waiting, etc. However, these operations have value, which means that costs on them need to be reduced or completely eliminated those processes that the consumer would not approve of.

Read also: Application for voluntary resignation

Ten rules for fighting costs

Don’t try to “kill” costs, you need to make them “obedient”, that is, learn to manage expenses. In some cases it is useful to increase them.

“Efficiency rule” - each unit of cost must bring maximum results, or - to achieve results, costs must be reduced to a minimum.

Costs arise both with any action and with inaction.

You don't need to be a maximalist. Even a minimal reduction in costs or keeping them at the same level is a good result.

On ways to optimize costs there are no small things. Accept that you will be called boring and paranoid. Require employees to save paper, electricity, water, etc. Having become accustomed to saving on little things, subordinates will begin to be careful about large-scale expenses.

Costs cannot be reduced without spending a penny.

There are useful expenses that can protect you from large losses (insurance, security, quality improvement).

Cost analysis and optimization is a race without a finish line. This work has no end date, it is daily, systematic, routine.

All employees must fight costs, but each one must be given an individual “combat” task.

When going on the warpath with unnecessary expenses, arm yourself with a pencil, paper, a calculator and a grain of salt. Any inefficiency noticed or an idea to eliminate it flashed in your head should be stored not in memory, but on paper. Don’t trust employees who don’t back up their words with numbers, and if they do, then the numbers need to be checked. The paranoid ones win the fight against unnecessary costs.

Reducing enterprise costs

Every business spends money on producing goods or providing services. Profit is considered to be the difference between the amounts spent on production and gross income, which is also called turnover. In some cases, you can increase cash flow by understanding which expense items can be reduced, but this must be done very carefully so as not to harm the company’s reputation or reduce the quality of the goods produced.

What does the company spend money on?

Any enterprise has its own specific expense items that help it function fully. All of them can be intelligently optimized, which will certainly bring increased profits and reduced costs. You have to invest money in the following needs:

• salary;
• purchase of raw materials;
• transportation of materials and finished products;
• taxation;
• advertising;
• maintaining large clients;
• rental or maintenance of premises;
• communal payments;
• maintenance and repair of production machines and units;
• other expenses.

Before reducing the costs of an enterprise, it is worth carefully reviewing each of their items and drawing a conclusion about appropriate optimization.

Salary

At any enterprise there are hired employees who, for a certain remuneration, perform a designated amount of work. Russian legislation states that the employer can independently regulate the level of wages, lower it or increase it.

However, keep in mind that there is a maximum allowable rate for reducing wages, and an employee cannot receive less.

To optimize the salary expense item, you can take the following measures:

• reduce staff;
• use outsourcing services;
• transfer workers to part-time;
• use part-time labor;
• reduce the management staff;
• automate production to partially or completely eliminate manual labor.

All these points will be effective only if their application does not negatively affect the final goal of each production - profit. For example, if you fire a highly paid woodworking specialist and hire a less qualified but cheaper employee in his place, you may face a decrease in the quality of your products, and this entails the loss of potential customers. It is for this reason that any manipulation with wages must be thought out to the smallest detail.

Purchase of raw materials

What we make the product from is also quite expensive, especially considering the recent devaluation of the ruble and the massive use of imported materials. However, this expense item can also be reduced by the following actions:

• searching for more profitable partnerships with suppliers;
• assistance with raw material producers;
• wholesale purchases together with other companies to receive volume discounts;
• implementation of design changes in production to switch to other materials;
• independent production of some components, spare parts, etc.;
• transition to cheaper analogues;
• replacement of imported raw materials with domestic ones.

These actions must be implemented very competently and wisely so as not to reduce the quality of the final product. For example, to make chocolates, it would be more expedient to purchase high-quality cocoa beans, but switch to more affordable packaging, so you can maintain the same composition of the product, but its cost will be lower than before.

Transportation of materials and finished products

Production costs for transport are sometimes fabulous, because raw materials need to be transported from different countries or even continents, and finished goods need to be delivered throughout the country. In this case, it will be beneficial to use the services of logisticians or create such a department at your enterprise. This will maximize the productivity of transport, since it will travel with cargo in both directions, and accordingly, the costs of driver labor and fuel will be reduced. You may also consider partnering with material suppliers that are located closer to your company.

To sell a product at a favorable price, you need to present it competently to the end buyer. This is precisely why advertising campaigns are organized, the costs of which are often very large. To reduce this cost item, you need to reconsider the following factors:

• the budget may be too high and can be reduced without compromising the final result;
• searching for new employees, sometimes well-known advertising agencies offer their services at inflated prices, in which case it makes sense to start collaborating with younger and more financially accessible companies;
• assessment of advertising profits: it is worth finding out whether advertising is effective, whether it brings more profit than the entire advertising budget, if the indicators are positive, then the companies are fulfilling their functions, if not, then you need to look for the reason for the failure;
• settlement with advertisers by barter, this method of reducing costs will be effective if you have something to interest an advertising agency, it can be either a product or a service.

If, when reducing PR costs, you do not get these results, then the savings will be ineffective. It is for this reason that each cost reduction item must be carefully reviewed and analyzed.

Maintaining large clients

Each production makes certain concessions to its large clients and makes special offers for them, introduces loyalty programs, and provides additional services. All this entails considerable costs, which reduce the level of profit. You can refuse the most expensive services, for example, SMS alerts to clients about promotions, constant mailing of emails, and more. At this point, you also need to weigh the pros and cons of saving, because refusing some services can negatively affect the company’s image and reduce the number of its regular customers.

Rental and maintenance of premises

Any production has a certain area, which is necessary for the comfortable organization of all work processes. It can be a small hangar, or a huge territory of several hundred hectares with premises and workshops for various purposes. Regardless of the size of the premises, you need to pay rent for them or spend money on their maintenance. You can reduce this cost item using the following tips:

• revision of the terms of the current lease agreement in favor of the tenant;
• moving to another premises that will be more economically profitable;
• the possibility of subletting some space;
• repurchase of leased premises, if appropriate.

If you are the owner of all premises and production buildings, you can reconsider your expenses for maintaining them in a safe condition for work. Regular current and major repairs can be done using cheaper materials; premises can be cleaned without cleaning companies, but with the help of hired employees.

Communal payments

Enterprises use natural resources for their activities, the payment for which is now quite expensive, given the special tariffs for production. The following measures can help reduce this cost item:

• establishing stricter control over energy savings;
• introduction of energy-saving production processes;
• transition to bill payment for services.

Equipment maintenance and repair

To ensure that production does not stand idle, you must always keep the equipment in good condition. High-tech machines are most often serviced by special companies, whose services are not cheap. You can reduce waste here too if you reconsider the following factors:

• deferment for a long or short period of current repairs of units;
• refusal of the services of contractors and repair of machines with the help of their employees;
• revision of the terms of the contract with contractors in favor of the company;
• search for more affordable companies providing service services.

“If, due to self-interest or negligence, someone takes food from others, he will be a penny richer and a ruble dumber.”

E. Topsell: Four-legged animals(1607) To save money, you will need to cut costs. There are many ways to “stretch” your rubles. Some of these steps will require planning and research, but they are worth it. And others, you can do right now. Some will require a small investment, but will pay off over time. The outcome of your attempts will depend on the finances available and your budget.

The first thing you need is an understanding of where your money is going; Next, you can think about ways to cut costs depending on your lifestyle. Remember that not only cheapness is important, but also efficiency. Analyze your needs and do the math. The most important thing is to understand that cutting costs is about changing your lifestyle and changing the way you think. Don't think that pennies don't count.

Steps

Determine where you are spending your money. If you don't know where your money is going, you're probably spending too much. Within one month, you can specifically understand your expenses. Write it down All what you buy, down to the last ruble. Don't stop at regular expenses like rent, utilities, gas and food. Include minor details like lemonade and chocolates, as well as chewing gum or cigarettes. Use a spreadsheet or other software to keep track of your spending history each month. If you use a debit card, the bank will do this for you.



Eliminate unnecessary expenses immediately. On the one hand, this will not be the biggest part of your savings, but on the other hand, it is important and simple. Do you have to visit a coffee shop on your way to work? How critical are those lemonades and a few chocolate bars that you buy from the vending machine at work? The coffee you make at home costs a few rubles, as does the lemonade you can buy a pack of at the grocery store. These ten lottery tickets... your chances are almost zero. These are small details and most of them are habits. You may feel a psychological burden at first, but when you add up the rubles you've saved, you'll see an immediate difference.

• Before you go to the store, make a shopping list and stick to it. This is especially important for impulsive buyers. Have you ever gone shopping for eggs and walked out of the store with a basket of 15 items? Did you really need two bags of marshmallows? No. You probably didn't need half of these things, but you bought them anyway. A shopping list allows you to be clear about your grocery needs without buying unnecessary items.

1. 

   Think about your utility bills.

   • Heating or cooling (gas or electric): When you leave the house, set the thermostat to the “away” setting. Don't put it out with the idea that it will take a long time to reach the desired temperature: 18°C ​​in winter and 27°C in summer will be sufficient temperatures for your comfort. A programmable thermostat will do this for you.
     • Set it so that the temperature changes between evening-morning and afternoon-evening, and thus you will be comfortable waking up and coming home after work.
     • Consider purchasing ceiling fans - they cost around 700 rubles and they critically reduce the cost of heating and cooling by circulating air. If you don't spend that much and don't plan to stay in the same place for a long time, then you may not have time to save a lot of money. Consider electric blankets and mattresses.
   • Electrical: lighting is expensive. When you leave the room, turn off the lights behind you. The idea that it costs more electricity to turn on a light bulb than to keep it lit is not true. When you turn on the light, you spend an amount of energy equal to 1 second of the light bulb glowing. Energy-saving light bulbs are economical. This is an investment that will pay off over time. Turn off your computer and laptop when you are not using them. All voltage adapters (including those found in stereo components) use electricity, even if they are not charged or inserted into the device. Of the total electricity used, 40% is spent on devices when they are turned off. Unplug the power cord from the outlet, or buy a smart device that will regulate this for you, for example, a Smart Power Strip (from 900 to 1300 rubles, at http://www.smarthomeusa.com If you have a digital adapter with a power outlet, then plug your TV into it, and program it to turn off power when the adapter is turned off. For stereo components, connect them to an adapter that can be easily disconnected. During the day, open the curtains, instead of using electricity. Use lighting only when you need it necessary Clean the radiator on the back of your refrigerator if it's dirty, thereby increasing the efficiency of one of the most expensive appliances in your home.
   • Water: Save water consumption and you will save money. Invest in a water saving device - they cost next to nothing and will immediately start saving you money. They work on the principle of reducing the water pressure on the shower, and the change in flow is almost unnoticeable. Learn to take a quick shower - an inexpensive bathroom timer will come in handy. Fix a toilet and a running faucet - this is a terrible waste of your water. When you are not using water from the tap, turn it off. For example, when brushing your teeth, do not leave the tap running. Don't buy bottled drinking water; you can get rid of the chlorine taste by leaving the water in the jug and refrigerator for several hours; In addition, chlorine in water strengthens your teeth and reduces the cost of their treatment.
   • Gas and more: Do as much laundry as necessary, but as little as possible - for many people, this will be a pleasant step. Turn down your shower temperature a few degrees; The less your water heater runs, the less money you'll spend. Also, keep your water heater thermostat on a low temperature (if possible). (Turn off the electrical power in the house before making any changes.) Use the microwave instead of the stove as often as possible—the cost of heating in the oven is more than the cost of cooking in the microwave. Open windows during good weather to reduce heating (and cooling). If you live where gas is used only in winter, then turn off the gas supply at other times of the year so as not to pay for this privilege without using it for its intended purpose.
   • TV and telephone: Do you really need 1000 channels and every premium channel, including HD channels? You can save up to 3,000 rubles using free online television. If you want to save money, take a hard look at your priorities. For your phone, choose the right tariff. If you call long distances, then consider unlimited tariffs. IP telephony may be right for you. Some services like Skype, gChat (Google), and Windows Live! allow you to make free video calls to other users, or make calls to telephone lines at a low cost.
   • Telephone: SMS cost money. “No, I have unlimited messages!” Yes? And how much did this option cost you? Does every member of your family really need a phone? Parents should set rules for telephone use. Another important question is if you have a mobile phone, do you need a landline? Think about it. If you rarely use your cell phone, consider a plan that pays only for the minutes, messages, and data you spend. On the other hand, keep in mind that low-cost, unlimited plans can be very beneficial, depending on your situation.
   • Economical tariffs for mobile phones: Some mobile plans are really good and economical. Many mobile operators offer contracts and PAYG plans, depending on your preferences, for example, someone who texts a lot or another who calls a lot. For example, some mobile operators reward using a lot of text messages, which can be useful and much cheaper than calling. Remember that calls to telephone numbers of other operators or landline lines most often cost more. Avoid plans that pay per kilobyte or per message. Try to find a tariff with an acceptable cost.

2. 

   Think about gas and other car expenses: When gas was fired during World War II, a popular phrase was “Is this journey necessary?” Ask yourself this every time you get into your car. Make a list before your trip to the store so you don't have to make additional trips. Don't ride for pleasure - walk instead. Check the pressure on your tires. Convertibles rev less with the roof up (of course, the cost of a couple of extra liters won't be much compared to the pleasure of driving with the roof down.) A poorly running engine is a huge expense, even replacing the spark plug can make a big difference, as well as good oil. In addition, the less you drive, the less often you will have to change your tires, oil, and reduce the need for repairs. These are savings that will accumulate over time. Another way to save gas is to change the way you drive. Driving smoothly, without jerking, can save a fair amount of gas (you can do the math yourself on this website). Try to avoid driving in traffic jams. City transport with an online schedule can often be an excellent replacement for your own transport in big cities.

   

   Save on entertainment. It's funny when so many people complain about not having enough money and then talk about the new movie and the cost of popcorn at the cinema. In addition, sporting events, music concerts, or play tickets can cost thousands of dollars per date. Seriously, can you feel the difference between a bottle of wine that costs 300 rubles and one that costs 900? When you go out to eat, think about the prices on the menu. Consider sharing dinner between two people if the restaurant allows. Never order expensive food to be delivered to your home; you only enjoy food, and at an expensive price, when you can easily cook for yourself without spending so much money. Think about a vacation - have a tent holiday with your children instead of an expensive amusement park.

   • Most people, with the exception of professional athletes, actors and musicians, cannot distinguish a good performance from a perfect one. Even if they can, they would rather enjoy more quantity and variety. Enjoy school performances and varsity sports, community theater and other low-cost events.

3. 

   Revisit your old items instead of purchasing new ones unnecessarily. Dress up and show off in the retro items that were lost in your closet. Organize your belongings to avoid losing them in the future.

   

   

   Consider the cost of your insurance: The quickest way to cut costs for most people is to look at paying for insurance. Insurance companies compete strongly with each other. Find out about other options. As you do this, remember that low down payments won't always be the best value for money.

   • Car insurance: Look at your franchise. Avoid sudden increases in your deductible - analyze the entire plan based on your needs and expectations; First of all, do a risk analysis. If you have an inexperienced driver in your home and no savings, a high deductible may not be the best choice. If your car is financed, then the minimum insurance will be enough for you. However, if you have a lot of good driving experience and your own car, then you may want to consider a high deductible to save on premiums.
   • Health insurance: Check out the different offers. Find an insurance plan that fits your lifestyle. Compare your needs with what is currently written. The average person in good health in their 30s might choose a high-deductible plan or a low-deductible partial insurance plan, while a married couple who is considering marriage may want to consider a high-deductible plan with longer coverage. The point is to find what you want necessary.
   • Life insurance: There is no doubt that this is important to many people. The rule of thumb is that for a person with a family, three to five years of income replacement is needed. However, if you are 20 and single, then think carefully and decide if you are happy with your insurance. On the other hand, if you are over 60 and you are mainly interested in “funeral provisions”, then again these companies are highly competitive. We want to leave our loved ones (if that time comes) in abundance, but not at the expense of waste during your life.
   • Home and Rental Insurance: This can be a huge expense and many home owners are unaware of how much they are paying as it is taken out of the house payments. Review your insurance plan with your agent. Is your property worth the 9 million stated in the terms and conditions? Also, look at the missing points. Damage from flooding; from snow; hail? Think about it if you need it. Is something important missing? Is something included that you don't need? Yes, of course, Aunt Martha's chair means a lot to you, but do you need a separate item for it?

4. 

   Think about second hand items: This is a good way to save money. If you really need something, you don't have to buy a new item from a boutique. There are many second-hand stores where you can buy good things for next to nothing.

   

   Actively manage your credit: Poor credit management will cost you a huge amount of money over the years due to interest. View history; check anything that seems incorrect. Pay your bills on time. Pay off your credit cards and put them aside.

   

   Avoid overspending on debit cards: Overspending may seem normal, but it's an extra step towards debt. Even if your bank doesn't charge interest on overdrafts on your debit card, if you have persistent overdrafts, they will. The advantage of such cards is that you spend money that you do not have, but as a result, overspending will reduce your financial discipline. Do not do that! If you really need to use a debit card and overspend, then do not forget to calculate the interest on all cards and the overdraft. When paying off a loan, try not to borrow a lot of money.

   

5. 

   Avoid excessive housing costs. A safe area, and if you have children, then one where they can study safely - this is important. If you like a big yard and big windows, or easy access to shopping (an overall detrimental feature, like neighbors living extravagantly and beyond their means), find and pay for a place like this. However, the house sits in the rain and slowly rots, and can be replaced within a few months. There is plenty of open space around to build houses, and less developed areas are likely to have high competition. History shows that this is not the best “investment”, although it has a good residual value and some people make money from it.

   • Think about every purchase before you make it. Ask yourself whether you need this item or just want it. Do you already have something similar? Is it good quality or will you have to replace it after a few uses? Most importantly, are you willing to spend your savings just to get it? If an item is unnecessary, then simply say no.
   • Use the 24 hour rule. Wait 24 hours before buying something you don't really need.
   • Limit your alcohol intake. You can save a lot of money by stopping or reducing your alcohol consumption.
   • Forget about excitement. If you gamble (only if you know how to consistently win and get rich)… stop. Stop doing this. For example, the chances of winning the lottery are about 1 in 150 million.
   • Quit smoking. In addition to the fact that you spend up to 5,000 thousand rubles a month, there is a huge risk to your life and health.
   • Consider investing in reusable items. Rechargeable batteries are a good option if you use them frequently - the question you need to ask yourself is, Why Your battery consumption is so high, and how can you change it?
   • If you signed up for services that are not very necessary, for example, satellite radio, then mentally prepare to refuse them, and at the same time call the office of this company. Tell them that you want to cancel these services, and in the process, if you are transferred from one person to another, say the same thing - the truth that you are not able to support the monthly payment for their services. Perhaps they will provide you with a discount, but if so, then simply refuse these services and save up your money.
   • Isolate. Insulating your roof and walls will save you money over time. Check for drafts near doors. If you see light between the door frame and the wall, then buy construction foam and cover these holes.
   • Plant a garden. Even a small harvest can provide enough food. Sure, you can spend whatever you want at the grocery store, but do the math and think about your own harvest.
   • Stop using paper napkins and towels. Rag towels are highly absorbent and can be used many times. Rag scarves can be made from an old tablecloth. They clean much better than paper.
   • Use things twice. Shopping bags are a great solution for taking out trash. Brew coffee twice. If you want two cups of tea, then one bag will be enough.
   • Check your resource consumption. An energy monitor is an effective device for recording energy expenditure. It shows, in real time, how much electricity is consumed in your home, in rubles, kopecks and kilowatts. Tests have shown that using such information results in savings of 10% to 20%.
   • Use tissues when you are healthy. They are not disgusting if washed frequently, they are hygienic, and more convenient than paper napkins.

When implementing, great attention should be paid to minimizing everyday operating expenses, which often drag down the entire personal budget. Let's try to figure it out how to reduce operating expenses, what does that require.

Everyday expenses (or money for personal needs) are one of the largest items in the personal budget for average people.

Therefore, great attention should definitely be paid to reducing and optimizing this cost item, because it has a very significant impact on the whole.

So, how can you reduce your running costs? To begin with, I propose dividing all the money for personal needs into two components in order to optimize each of them separately:

1. Fixed expenses. These include all those expenses that remain relatively stable (virtually unchanged) from month to month and which a person must pay monthly. This may include utility bills, payments for kindergarten, Internet payments, etc.

2. Variable expenses. These include expenses, the amount of which is not constant (changes from month to month). This may include expenses for food, the purchase of clothing and other accessories, transportation expenses, expenses for recreation and entertainment, etc.

Variable expenses should be optimized first, since they are often where unnecessary overspending of the personal budget lies.

Fixed expenses, too, despite their apparent “inviolability”, in many cases are subject to reduction.

Once you have divided your daily expenses into fixed and variable, you need to calculate what share of your personal budget is occupied by both. Let me remind you that in total all current expenses should amount to no more than 90% (this is the maximum!) of the income portion of the budget, since you must immediately set aside at least 10% for and. And if, God forbid, you also have debts, then the share of current expenses will need to be reduced by the share allocated to (at least 20%).

The smaller the total share of current expenses in the personal budget, the better. Reducing current expenses will increase a person’s other monetary assets (savings, capital), which will allow him to improve his financial condition.

It would be more optimal for a personal budget to have an approximate equality of fixed and variable current expenses. Therefore, if you see a significant advantage in one of these categories, then you should think about optimizing it first.

Next, you should separately consider each item of fixed and variable expenses and analyze how to reduce current expenses specifically for this item. That is, it is necessary to start keeping constant records of personal finances and act based on the results obtained, for example, over the past month: analyze how much current expenses went where and how this amount can be reduced.

In the future, we will dwell in detail on how to reduce current expenses for each of the main items of fixed and variable expenses. Stay tuned for new publications!

Every family sooner or later faces a problem: how to cut costs. After all, very often unreasonable spending, in which there is not enough money even for food or travel, leads to complete bankruptcy. In this article we will look at all kinds of ways to save money. Useful tips will help you rethink the whole essence of the family budget.

What you shouldn't do

Almost all people, when faced with a lack of funds, begin to look for additional ways to earn money besides their main job. Of course, this is a very good option, but only on the condition that you have time for sleep, personal life and hobbies. In addition, you will not be able to work without rest for a long time. Fatigue will make itself felt in any case.

Undoubtedly, additional sources of income are a very good opportunity to have a large amount of money. But without the skills to distribute them correctly, it will be meaningless. So let's look at the main ways to cut costs while enjoying your life.

Spending analysis

Typically, spending analysis helps you clearly understand how much money you spent and how much you earned. At the beginning of keeping such records, you will see some difficulties, but after a few months, believe me, you will even begin to enjoy it.

By carrying out this analysis daily, you will begin to understand where the money you earned went. Thus, saving the family budget will help you understand your funds. You'll be able to see where you wasted your money and won't make the same mistakes next time.

Unnecessary costs

Most often, people go shopping immediately after receiving their salary. After all, what could be more pleasant than pampering yourself or your loved one with a nice thing? In principle, there is nothing wrong with such purchases. However, it is still better to pay attention to some nuances.

You should not go to the store after receiving your salary. After all, it is at such a moment that you have a considerable amount of money, which means you can also spend a lot. It’s better to wait a little, make a list of things of primary importance and only then make a purchase. Also, never forget about the need to pay utilities and loans. Set aside money from your salary for them right away.

Subsidies for utility bills

Be sure to find out about the possibility of receiving a subsidy for your family. This is a great way to save money during harsh winters. Contact the appropriate centers not only on your own behalf, but also register your parents there.

Believe me, after receiving a subsidy, you will be able to significantly reduce your family expenses, and finally go on a trip or fulfill any other long-standing dream. Subsidies for utility bills are significant government assistance to your family.

Minimize your use of credit cards

On the one hand, what difference does it make how you pay for your purchase? But, on the other hand, there is still a difference. Of course, it is much more convenient to make a purchase via the Internet, paying by bank transfer, but when you go to the store yourself, for example, for groceries, you risk spending much more if you have a credit card with you. If you pay with cash, you'll be able to stop filling your cart much faster.

Please note that it is best to buy food a week in advance. This way you will visit the store much less often, which means you will spend less. Of course, the exception is perishable foods.

Discounts and discounts

If you think that having a discount card is not so profitable, then you are very mistaken. This is especially true if you most often go to the same stores. Having a discount card with you, you can easily understand how to reduce expenses without straining too much.

If you visit a gym, it is better to buy an annual subscription right away, this will also allow you to save a considerable amount of money.

Buy in bulk

Some groceries and household goods can be purchased in bulk. Family budget savings greatly depend on this. Of course, no one is talking about buying any product several years in advance. But, for example, it is quite possible to buy sugar, cereal or sunflower oil in bulk. This also includes household chemicals. If you're wondering how to cut costs, shopping in bulk can help you figure it out for yourself.

Shopping out of season

If you don’t follow fashion, but love good and high-quality things, then the best way to save money would be to buy winter clothes in the summer and summer clothes in the winter. During the hot season, you can buy coats or boots with a discount of about fifty percent.

And at some sales the discount may be even greater. The main thing is to make sure that things are of high quality, otherwise you will not only not save, but will also incur additional expenses.

Advantages of online stores

Many families are interested in how they can save money. And such interest is completely justified. After all, with the funds saved you can fulfill your dream, and simply significantly improve your standard of living.

Economists recommend not bypassing online stores. You can buy the usual things there, but much cheaper. Very often, people save quite a lot of money by even buying furniture online. It is worth considering that you can save money even on delivery. After all, some suppliers provide it for free. Don’t be lazy and find out more information about shopping in online stores.

Savings on utilities

If you are still wondering what you can save on, then utilities are exactly the budget cell that you should pay special attention to. Install gas and water meters. Believe me, one expense will help you spend your money wisely in the future.

Also, don’t forget about the possibility of applying for a subsidy. Planning a family budget begins with taking into account the little things, so approach the issue of saving on utilities with all seriousness.

A few words about electrical appliances

Tell me honestly, do you turn off electrical appliances when you leave for work? Unfortunately, most of humanity does not do this. And very much in vain! Unplug all electrical appliances that you do not use every minute. This includes a washing machine, TV and other equipment. Thus, you can save money not only on kilowatt consumption, but also protect your equipment from short circuits.

Saving on medicines

Family budget planning depends on many factors. Every little detail is important in this matter. Be sure to pay attention to purchasing medications. It has long been no secret that many doctors receive a percentage from pharmacies when recommending drugs of certain brands.

If you do not want to encounter such problems, directly ask your doctor whether there are other cheaper analogues for this product. Most often, all expensive medicines have them. If the doctor is silent about this, analyze the information from other accessible and reliable sources.

Payment for communication, internet

In this article we look at how to reduce family budget expenses. Have you ever wondered how much money you spend on using the Internet and mobile communications? Today there is huge competition in the world, so you have every chance of finding a good provider who will have to pay much less for the Internet. The same can be said about using a mobile phone.

Please also pay attention to the use of paid channels. Do you really watch TV that often? Maybe you should stop watching paid channels altogether?

Availability of a piggy bank

It is very important to understand all the principles of how to reduce family expenses. We really ignore some opportunities, which is why we can end up in extremely ridiculous situations. As a child, probably each of us had a piggy bank. This is how money was collected for a bicycle or other very important thing. So is it worth giving up having this much-needed accessory now?

Saving even the smallest sums of money can save you from situations where there is no money for travel or bread. Buy a piggy bank and you won't regret it. This will be a very useful acquisition.

Give up loans

If you are wondering how to reduce your expenses to a minimum, then forget about such a thing as a loan. This is especially true when shopping for clothes or money for a vacation. After all, you will rest now, but a year will pass, and you will want to do it again. And the loan for the last trip has not yet been paid.

Try to avoid such situations, especially considering that the economic situation in the world is quite unstable. What will you do if you are unable to repay the loan? It’s better to be patient a little and make a purchase with your own funds.

Learn to save from every paycheck

In order not to face unpleasant situations, start saving for a rainy day. Ten percent of family earnings is not a very large amount. If you follow the saving methods described above and save money from each paycheck, you will notice that finding money for a vacation or something else is not so difficult.

Don't forget about deposits

Set a goal for yourself about what exactly you are saving money for. This way you will be much less tempted to spend it. You will especially want to do this if you have them lying around at home.

Therefore, the best solution would be to open a bank deposit. And if you know a little about economics, then invest it in securities or engage in stock trading. Thus, you will begin not only to save, but also to receive additional money. At first, your income will not be very large, but over time, its growth and stability will confirm the correctness of your choice.

However, not in all cases you need to think specifically about reducing costs. If a family has very little income, then you need to think about increasing income. But in any case, you need to understand the issue of how to reduce food costs, especially when it is not healthy for your body. Think about your spending and you will understand that in all situations you can find the right way out. The main thing is to learn to control yourself. Your life is in your hands.