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

1. Use public transportation

Using public transportation to work and few other places could become a reasonable choice when you consider how much you spend on fuel, maintenance of your car and toll gate charge every day.

Each time you try to leave your car behind and go to work using public transportation, you'll surely save a certain amount of money. Do it for a month and check what you have in your savings account

2. 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.

3. Cook your own meals at home

Eating out is expensive I am sure you know this. So why waste your money? If you can cook, prepare enough meal and freeze the rest for future meals if you can't finish it once. This will save you the money you've been taking to eateries.

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4. Buy your essential 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 bulk is 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.

5. Use LED light bulbs

You may also need to consider changing the bulbs in your home to energy-saving ones to spend less on electricity bills. LED bulbs are four times more energy saving than incandescent bulbs.