Everyone wants to spend less and save more, but actually doing so is trickier. While cutting costs in each area of your budget can be as painful for some as cutting off fingers, it is a necessary evil that eventually pays off. So, here are a few tips and tricks to cutting your costs and spending a whole lot less.
Put it on Hold - When shopping at the mall, never buy anything as soon as you find it and try it on. If you find something you like, put it on hold and continue looking around. While you do so, decide whether that purchase is something that you really need and want, or if it is just an impulse buy. If you really do want it, you can always return to the store for it before you leave. This way, you avoid purchasing items that you don't actually want that much, and give yourself a chance to find something that you like better, or that might be cheaper.
Play the What If Game – Each time you want to purchase an item, play the what if game, and ask yourself, “What if I didn’t have this item? How would my life change?” If you can’t find a drastic decrease in welfare without the purchase, you just might not need it.
Cable Television - Paying high premiums for On Demand and an extensive selection of channels? Make a list one week of every channel you watch, and for how long, but be honest. At the end of the week, evaluate that list and decide how many of the channels you are paying for are actually necessary - if you are only watching the basic ABC, Fox, and news channels, you may not need the channels 60-140 that you are paying a premium for. This could save you hundreds in monthly charges. Also, if you only watch one or two TV shows a week, you can almost always find them online. Most major stations stream their new episodes for about 4 weeks after they first air. If you have the patience to wait an hour, you can cut your costs and watch for free – and with limited commercials to boot!
Cook Up! - If you and your family often go out to look for entertainment, and dine out frequently, try cooking together. Find a new and interesting recipe on the internet, and plan a cooking activity. Engage the whole family, from the youngest to the oldest, as everyone can help! This will provide both entertainment and a good meal! Cost for a family of 5 to ...
Go to dinner ($80) and the movies with popcorn ($58): $138
Cook a nice meal together: $40
Total Savings: $138-40 = $98
Sensible Shopping - Shopping is a favorite American pastime, from clothes and accessories to big electronics and cars. And though it can be therapeutic, it can severely impact a budget. So, shop in moderation! Take a look at your finances before you leave the house, and decide how much you can actually afford to spend on this trip, and in this month.
Season Tickets - Unless you are a die-hard fan of the San Francisco Giants, or your kids absolute have to go to Six Flags every weekend or they'll throw a fit, chances are you don't really need those season tickets. Think about how many times you would go to Disneyland if you didn't have those tickets, and then decide if they are worth it. Remember, season tickets are companies' way of getting to pay for everything upfront, before you change your mind about wanting those tickets.
Cars, Cars, Cars - It's tempting to buy that bright shiny BMW, but before you buy a luxury car, think about its practicality. Cars are notorious for being one of the most expensive depreciable goods - they are only worth less as time goes on. If you have small kids, or are planning on starting a family in the near future, consider a cheaper, but more reliable and more practical vehicle. Getting car seats in and out of that bright red Mustang isn't easy.
Refinance that Mortgage - If you are really low on monthly income, consider refinancing as a way of limiting your monthly payments. This will extend the period of time that you will be making payments, but will lower your current monthly payments. For more information on refinancing, see the article on Refinancing Mortgages.
Tax Time! - Paying attention to your taxes can pay off. Itemize your spending to take extra deductions, especially if you are self employed or have outside income. Also, write off losses from investments to offset gains from other investments or from income. Consult your tax preparer for more details about cost-saving techniques.
The Latte Effect - Starbucks, Peat's Coffee, and Jamba Juice are all delicious, but for those of you who have a daily addiction, budget time just may be the time to kick the habit. If you buy a latte every day for $3.50 each, you'll spend $1277.50 in one year. Cut that down to one a week, and you save $1095!!
