Maintaining a Balanced Budget - Step Down Spending Method

Reducing your expenses is not easy, especially when you include your wants. Needs are what you need to survive. Wants are the luxuries of life that relate to comfort and convenience. 

One way to reduce expenses is the Step Down Spending Method. Consider your current expenses and take steps to get the same item or achieve the same want or need while SPENDING LESS.

The chart below provides a variety of steps you can take to save money in different spending categories. 

Category	Step1	Step2	Step3	Step4
Housing	Rent a house	Rent an apartment	Find a roommate	Rent a room
Clothing	Shop at department stores	Shop at thrift stores	Shop less often	Limit the amount of money you spend each month
Food (eating out)	Reduce the number of times you eat out per week	Eat at less expensive restaurants	Do not order an appetizer or dessert	Drink water only
Automobile	Purchase a less expensive car	Car pool	Review insurance coverage for lower-cost options	Combine trips to reduce gas use
TV service	Change provider	Have only one TV	Reduce the number of channels you subscribe to	Cancel satellite or cable
Mobile phone plan	Reduce plan (data, text, minutes)	Change provider	Repay phone	Purchase a less expensive phone

Start 'stepping down' by listing your current expenses in a particular category, then decide how many steps you're willing to go down. This isn't an all-or-nothing action. There may be some things you don't want to give up, but there are still ways you can get what you want while reducing your expenses.

 

 

Use this blank Step Down Spending Method worksheet to list your current expenses and find ways to step down and spend less.