It may not sound like much fun, but learning to cut expenses can actually be far more beneficial to your finances than trying to take on a second income or find a better paying job.

Take a look at your spending habits and find the guts to change. What things on that list are needs? What are things you just wanted? If you lost your job tomorrow, what could you cut?

Here are some areas you may be able to cut expenses:

Entertainment – Can you drop cable for Hulu? You could check DVDs and books out from the library instead of buying them. Enjoy the outdoors instead of spending money on events.

Eating Out – Learn to cook at home. Even if you pick up something from your local deli and bring it home, you’ll still save money over eating out. You can make some great meals on a small budget.

Services – Can you do your family’s haircuts? Groom your own dog? Paint your own nails? Think about things you could do yourself instead of paying someone dor the convenience.

Groceries – Use coupons, learn to shop the sales, and plan your menus around the deals. This is one of the easiest ways to cut expenses. Once you learn how to shop, you’ll discover great ways to get things for free or nearly free.

Utilities – Switch your light bulbs to compact flourescent bulbs, and run your dishwasher and washer during off peak hours. Line dry your clothes. Turn down your thermostat in the winter, and turn it up in the summer. Can you switch your cell phone plan to save?

These are just a few, very simple ideas for cutting costs. The idea is to get you thinking about what more you can do to stretch your dollars. Be sure to search my frugal living archives at Northern Cheapskate for more ideas on how to save money.

Once you have figured out how to cut those expenses, you’ll want to think about boosting your income.