Cutting your expenses
Learn to control your spending and you secure your financial future. Spending habits are set early in life. To learn more about your habits, go through your spending worksheet carefully. Can you spot your spending leak? Do you have a cash reserve? Is your money in the drawer or a checking account?
Most everyone has had to find ways to cut back spending, from buying holiday gifts during January sales to re-purposing torn pantyhose as long underwear. Try these ideas to improve your cash flow and get into the savings mode:
#1 Buy a stylish mug and bring your own coffee
If you purchase a cup of coffee every day from a coffee shop, rather than brewing your own before you leave home, you may be spending $750 or more annually. That's $62.50 per month just on coffee! If your budget is very tight, carrying your own coffee in a mug is the easiest and first place to start cutting down on your spending.
#2 Don't eat out unless you have a 2-for-1 coupon
Eating out can be the most expensive "fun" thing we do. You pay to get there; to park; to order your meal, and possibly, drinks. Even during "happy hour," the bill can be way more than you planned to spend. What happens? It's easy to sit down on a Friday night with friends and, all too quickly, you owe $100. How can anyone afford to do this every weekend? If you must eat out, use coupons or two-for-one offers. In fact, choose where you go based on what coupons you have. That way you try new places, and you save yourself some coin.
#3 Go through your monthly bills
Do you have a cable subscription, cell phone with all the add-ons, and DSL for high-speed computer access? These services can easily cost up to $150 a month. Even package "deals" that bundle multiple services are costly. Check with your provider to discover their best offers. Consider using a pay-as-you-go cell phone plan; then, keep your talking times low and your usage in check. Remember, these services may be luxuries, not necessities. Ask yourself, 'Can I live without cable access until I get back on track financially?' Be patient with yourself. You will get what you want, if you manage your money properly.
#4 Comparison shop
Not all stores charge the same price for the same merchandise or service. You can get the same products for much less if you shop at the right stores. Buy generic brands to get the same quality, without paying the advertising and packaging costs of brand names. Check the ingredients for yourself! Buy used furniture and electronics. Buy at consignment shops. Wait for sales and use coupons as often as possible.
#5 Be inconvenienced
You will always pay more for convenience. Buying spontaneously may be easier and seem beneficial at the time, but in the end, you save a lot by researching your list of necessities for the best deal.
#6 Share your best ideas
Bring your friends in on your effort to get the most value for your money. Finding fun ways to be together that don't put you into debt will make for many good times! Check out our suggestions at Twin Cities for free to get started. And be sure to share your best ideas by e-mailing SFCmail@umn.edu.