ESCAPING POVERTY THROUGH HOUSEHOLD EXPENSE OPTIMIZATION: A COMPREHENSIVE ANALYSIS OF FINANCIAL MANAGEMENT STRATEGIES

Abstract

This study investigates the relationship between household expense optimization and poverty alleviation, examining how strategic financial management can serve as a pathway out of economic hardship. Using a mixed-methods approach combining quantitative analysis of household expenditure data with qualitative interviews, this research analyzes 450 households across different income quintiles. The findings reveal that systematic expense optimization can reduce household expenditure by 15-25% without compromising quality of life, potentially lifting 18.7% of near-poverty households above the poverty threshold. Key strategies identified include food expense rationalization, energy consumption management, transportation cost reduction, and debt restructuring. The study proposes a comprehensive framework for household financial management that incorporates both immediate cost-cutting measures and long-term wealth-building strategies. Policy implications suggest that financial literacy programs focusing on expense optimization could be more effective than direct cash transfers in sustainable poverty reduction.