You Can Use The Same Cost-Cutting Strategies As Private Equity Firms To Grow Your Funds

Private equity firms such as Blackstone, Carlyle, and KKR have long been known for their ability to drive profitability through efficient operations. But what many people don’t realize is that the same cost-cutting techniques used by these firms can also be applied to your personal finances. Value acceleration services, developed by companies like SIB, help businesses uncover hidden savings and turn them into growth—and you can do the same with your household budget.

Eric Steele, Chief Tax Officer at SIB, explains: “We are able to focus on areas where companies tend to think of fixed costs. Our job is to find those hidden savings and deliver in value, allowing businesses to reinvest those savings into growth.” Here’s how you can apply these ideas in practical ways to save money in your everyday life.

Applying SIB Value Addition to Your Funds

What SIB does for businesses—to improve costs in areas such as services, materials and contract management—can also serve as a model for people looking to secure their finances. Often, we overlook opportunities to save money because we assume that certain costs are non-negotiable. But just as SIB helps businesses review and renegotiate contracts, you can apply the same approach to your costs.

Take a Fortune 100 company that SIB helped save $8.5 million annually by optimizing their shipping costs. You may not have million-dollar shipping contracts, but you can certainly review your costs regularly — such as subscription services, streaming platforms, or monthly app fees — and find money hidden in your budget.

Practical tip: Review and Delete Unused Subscriptions

One action you can take today is this: open your phone, go to your subscription settings, and delete anything you don’t use. Whether it’s an old streaming service, a fitness app, or a subscription box you no longer need, these costs add up over time.

If you have an iPhone, just go Settings > Your name > Reservationsand check all active subscriptions. You’ll be surprised how many you’ve forgotten. With just a few clicks, you can cancel services and immediately stop being billed. Android users can do the same by going to Google Play Store > List > Reservations.

SIB’s money laundering policy can be directly applied here – what seems like a small monthly fee can turn into a huge savings when it’s eliminated on many services.

Real-World Case Studies: How to Follow SIB’s Leadership

SIB’s work with San Diego County uncovered $2.85 million in resource savings by reviewing more than 1,500 accounts. While you may not run a public utility, you can apply the same logic to your finances by reviewing your fees regularly. Start by checking your bank and credit card statements for payments you no longer use or need.

Beyond subscriptions, consider other services you may be paying for regularly. Maybe you’re still paying for a premium cable package even though you’re mostly watching streaming services. Maybe there’s a gym membership you’ve been meaning to cancel. These recurring fees may seem small, but over time, they can wreak havoc on your budget.

Helpful Tip: Automate Bill Payments and Set Usage Alerts

Another strategy adapted to SIB’s quality acceleration approach is to automate processes to reduce human errors and inefficiencies. For individuals, this may mean setting up bill payments and spending alerts.

Many banks and apps like Mint or YNAB (You Need a Budget) allow you to set spending limits for certain categories. By automating bill payments and receiving alerts when you exceed your limits, you can stay on top of your budget and avoid late fees, overdrafts or unnecessary expenses.

Think of this as your own version of a contingency-based SIB – where you’re only charged when you go over your budget, making it easier to catch financial mistakes before they cost you.

Redefining Your Savings for Personal Financial Growth

Once you’ve eliminated unnecessary subscriptions and optimized your recurring expenses, the next step is to put your savings back into something worthwhile. SIB customers often invest their savings in improving customer service, upgrading technology, or expansion. For you, it could mean putting extra money toward paying down debt, building your emergency fund, or contributing to your retirement account.

For example, if you save $50 a month by canceling unused subscriptions, that’s $600 a year you can put toward a Roth IRA, emergency fund, or retirement fund. Small changes like these can have a big impact over time, especially when paid back wisely.

Practical Tips: Start a High Savings Account or Small InvestmentTake your savings to cut unnecessary expenses and put it into a high-yield savings account or use a micro-investing tool like Acorns or Robinhood. These platforms allow you to start investing with a small amount, and over time, your savings can grow significantly with compound interest.

SIB’s strategy of finding hidden value and reinvesting it into growth aligns with this approach—turning that savings into something that will benefit your financial future, rather than letting it fall by the wayside. slip through the cracks.

Conclusion: Lessons from Private Equity for Your Finances

Lessons from private equity firms and companies like SIB aren’t just for business – they’re practical strategies you can apply to your investments. By monitoring your subscriptions, automatic bills, and alerts, you can optimize your costs just like SIB does for its customers. And when you put those savings back into something that will benefit your financial future, you’re following the playbook that makes private equity firms so successful.

The SIB approach shows us that we don’t need to cut corners to improve our financial situation. It’s about making smart choices with the resources we already have. Whether you’re reducing unused savings, getting money off your monthly bills, or reinvesting in your future, small changes can lead to big results over time.