To review and optimise your expenditure you must first understand where your money is spent, what is optional, and what can be changed and when.
- Divide your expenses into groups (admin, insurance, utilities, repairs, capital expenses, cleaning, building management, other)
- Calculate the percentage of total spend for the group
- Select a group for closer review
- Identify each cost within the group as optional or essential
- Identify when the optional costs can be reviewed (if they are on contract when it matures)
- With specific items identified ask the contractor/supplier if they can provide a better price, or obtain additional prices.
TIPS:
# Start with the biggest percentages
# Best places to make savings are usually insurance and utility costs, these should both be reviewed every 2-4 years
