How to Cut Your Expenses by Asking Yourself 1 Question

The only thing certain in life are death and taxes.

There’s still 1 more thing… that is expenses. We can’t run away from spending, whether its for needs or wants.

Spending can go out of control easily when we do not keep a conscious note of where our money is going and more so if you do not Pay yourself first.

It is hard to differentiate between Needs and Wants sometimes especially when we are used to a certain standard of living, no matter who we are.

As I was going home from work, I was thinking,

What if I lost my job tomorrow ? What if I am unable to work and earn an income ?

Do I have enough savings to tide me through this period ?
What can I do to reduce my spending immediately ?

Here’s a list of things that came to my mind :

  1. Cut down on dining at restaurants, eating at hawker centres and buy the cheapest food.
  2. Drive less and take more public transport.
  3. Hold off big purchases, travel plans to a later date.
  4. Cut down on credit card use as I know there is no money coming in.
  5. Go out less therefore spend less money on food and drinks.
  6. Cut down on entertainment expenses like going to the movies, concerts.
  7. Have coffee at the kopitiam instead of the Cafes and Starbucks
  8. Liquidate my stocks to keep more cash in hand
My major expenses involve food as that’s where I spend mostly and I suspect that goes for some of you as well. I was thinking about how often I eat out and where do I go, how much I spend each meal and how I can cut down.

You may have your own list as you ponder upon this question because everyone has different spending habits.

This question “What if I lost my job tomorrow ?“is basically the simplest way to know what expenses you need to and can cut down on.

All the answers will come flooding your mind once you seriously think about this question.

The GOOD NEWS is, you don’t have to wait for it to happen to prepare for it !

Immediately cut down on the unnecessary extravant expenses that we CANNOT afford to have if we do not have an income.

After that, you can consider those that you may have exceeded your budget on and would be good to trim down to a more affordable level.

Here is another GOOD NEWS for you. If you realise even if you lose your job or the ability to earn an income does not affect your level of spending at all or you are spending at a level way that can be covered by passive income,


You can retire and quit you job if you like and exit the rat race immediately a winner. (by not being a rat)

This is the ultimate goal for all Mustacians out there and financial freedom seekers.

Another scenario comes to mind. What if I am already spending at a very low level and still cannot afford to lose my job ?

You may want to seek a higher paying job while still working or work on getting more passive income through business or investing.

There are also insurance plans for disability income to protect your income in the event that you are unable to work due to accident or some other mishaps. More on that in the later posts.

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