One of the biggest challenges people face in personal finance is understanding how to cut down on their monthly expenses.

Everyone wishes to have enough savings to achieve their financial goals, but a lot of people haven't really figured out how to spend less to save more.

You might think the money you spend on certain bills is insignificant, but to be honest with you, the cumulative effect of those bills could be a drain on your resources.

Therefore, to cut your expenses, you just have to spend less and here are five ways to go about that.

1. Negotiate prices

Don't ever be shy to negotiate prices no matter how small the purchase is. You can negotiate in any purchasing situation.

Don't think it is only reasonable to negotiate when you are making big purchases. You can also negotiate even when you are buying toothpicks at retail store.

2. Track your spending

Tracking your expenses is the best mechanism you can employ to get control of your money.

Doing this allows you to give every Naira and Kobo you spend a purpose as tracking helps you to know how much you have and how much you are spending.

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3. Make alternative choices

If you addicted to using a brand and its price is hurting your pocket, you may need to consider alternative choices if you really wish to cut expenses.

For instance, instead of patronising your favourite eatery, you can cook at home. Alternatives like this can make a big difference to your savings.

4. Sell unused items

There is no point keeping items you are no longer using. Look through your wardrobe, your stores and kitchen cabinets for items you no longer use that may have value.

Gather the items and put them up for sale on classified sites where you can sell used products.

5. Buy your needs in bulk

Buying your daily needs in bulk has some benefits for you and your pocket, but you may not realize this until you start buying some things in large quantities.

The foremost advantage of buying your essential needs in bulkis that it allows you to save money over time. There is no point visiting grocery stores every day to buy things you can buy once a month in large quantities. Buying in bulk has a great effect on your wallet.