If your finances are tight at the end of the pay period, these tips to help you cut back on spending will help to solve that. Most people don’t even know where all their money goes. The little things add up and it is time to discover where you can cut back and find less costly ways of doing things.
Interest and Fees
Credit card debt is a big culprit. Credit cards are easier than cash; therefore, it is easier to spend more money. This results in a larger monthly payment and it piles up more interest if not paid off each month. A low-interest secured loan is a great way to get rid of credit card debt. Expert advice, such as that found at moneysupermarket.com can help with that.
A good place to cut back is ATM fees. ATMs usually involve fees from the vendor and from your bank. It can cost $6 or more to take cash from your account. Doing this several times each week can cost over $100 per month. Pull the cash directly from your bank’s ATM, or shop at stores that allow cash back from your debit card purchase for no fee.
Reducing Automobile Expenses
Keeping a vehicle’s tires inflated and the engine tuned saves gas. So does walking, car-pooling and public transportation, as does living near work. Car-pooling can save at least half the gas money and more with more participants.
Plan trips to get everything done at one time rather than going out again later. Making several stops in one outing saves gas money you would have spent in additional trips.
When purchasing a car, buy one that is two years old rather than a new one. New cars depreciate when you drive them off the lot, but a two-year-old car has depreciated already and can still be in good shape. This can save you several thousands of dollars.
If your vehicle is older and paid off, consider dropping full coverage insurance. Liability is all you need and it may not be worth full coverage if the vehicle is so old that it would not be worth repairing. Also, consider raising the deductibles. That can save you hundreds of dollars each year.
Reducing Utility Bills
A few adjustments can save you lots of dollars each month on utilities:
* In the summer, keep the thermometer at 68 or lower and 78 or lower in the winter
* Keep the AC filters clean
* Save hot water by taking short showers and reduce the temperature of the water heater
* Turn out the lights in vacant rooms
* Use microwave or toaster oven and only bake when the weather is cold
* Reduce phone bills by having only the minimum features
* Reduce cable bills by getting only the basic programming
* Unless it is crucial to your work, get a slower internet connection
Spending Less on Food
To save money on food, always use a shopping list rather than risking impulse buying. Use coupons when you can and stock up during sales. Instead of dining out, pack lunches or eat at home. Take coffee from home instead of stopping for it somewhere else. Avoid spending large sums on alcohol and that goes for tobacco too.
What You Get in Return
If you are doing so now, you will no longer be living from paycheck to paycheck. You will be able to pay down all of your debts faster and put money aside for your children’s college education. You can also start putting more money aside for retirement, so you will be more comfortable during that time.