1. Do you have a budget? How much am I bring in? How much am I spending? Record what you spend for 30 days, and record your income. The first step to reducing household expenses is know where your money is being spent, and whether or not you are overspending. If you are exceeding your income, you can use that as a guide for how much to reduce your household expenses by. Set your budget, write it out so that you are very clear on what you should be spending, when, where, and how.

2. What do I really need? Your next question to ask yourself is what do you really need? You have to take a look at your household expenses and determine which of them are things you actually need, and which of them are extras, or things that are not really necessary. For example, do you really need 400 television channels? Do you need monthly subscriptions to the gossip magazines? Do you have to have high speed internet, or would dial up work? If you have a cell phone, do you need a home phone, or vice versa? Ask yourself what you need versus what you want, and start cutting out or down on some of the extra fluff in your life.

3. How can I save on the things I really need? Now ask yourself what you can do to save money on the things that you decide you actually need. For example, you have to have food, so look for ways to make the food less expensive. Here are a few ways you can reduce the needed household expenses.

a. Coupons. Many people have made an art out of using coupons. They can take $100 worth of groceries and get them for $15 because they have all kinds of coupons, from store to manufacturer, buy one get one, and more. So, if you have to buy something, look for a coupon to get it at a discounted price.

b. Saving on utilities. Next, look at your utility bills, and look for ways to cut the cost down. For example, you can focus on doing the little things like turning off lights and air conditioning units if you are not home. You can make sure that you keep your home cool or warm by opening and shutting blinds, doors, etc. Look for energy efficient appliances, etc. Look for ways to save, and you will cut your utilities down significantly.

c. Waste reduction. One of the best ways to reduce household expenses is to cut down the waste. Don't run water while brushing your teeth, don't over buy groceries, as this is expensive, don't pay for channels or other things that you don't need.