Many of us need to save money, for different reasons. You may simply want to get your head above water. Or you may want to save up for something you want. or you may feel your family is wasting, and some of the money spent can be put to better use. Whatever the reason may be, there are certain basic areas where you can attend to, and save substantial amounts of money by making a few simple changes..... Beyond that, it is simply a matter of applying principles.
The Budget......
To many, this is a word not mentioned in polite conversation. It's like a trip to the dentist......It sucks, but it has to be done. Draw up a budget, stating your current state of affairs. It may be scary getting into the details, but you have to account for every penny spent. Even money spent on yourself. You cannot plan anything before you know exactly where you stand. Once you get the "big picture" on your finances, you will be able to work on it. But if all the facts are not taken into account, the picture will keep on shifting.....
Once you have read through this book you will start making adjustments to your current budget. You will be making some enquiries before deciding on the final figures, and the final course of action. Think of it as taking a lump of wood and carving a figure out of it. If you do not know what the piece of wood looks like, the figure may very well be a mess....
It has to be in total detail. If you spend some money on yourself, like eating out, budget for that if you can afford it, but STICK TO IT. No plan is of any value unless executed.
Habits......
This is the section where some temperatures rise......
If the facts in this section become too much you can always close the book. But this section can save you more than a thousand dollars a year, so decide for yourself.....
Do you easily draw your credit card ? Do you know it is the single most expensive form of credit ? You may want to look at your old statements, and do some calculations. Keep your credit card only for emergencies.
How regularly do you use the ATM ? Go check your bank statements to see how much it costs you per month, and calculate how much you are spending per year. It will probably not be possible to stop doing it, but cutting down will save you quite a bit. Are you a smoker ? Have you ever calculated the cost ? If not, do a quick calculation: How much do you spend in a year, including the product, lighters, and driving just to get a packet when you "have to have it" ? You may be shocked by what you find. Even a reasonable reduction in the amount you smoke can result in significant annual savings.
The same goes for having a regular beer, or even sodas. Do your kids drink a soda every day ? Have you calculated the cost per year ? Again, it may not be as simple as just cutting it, but any reduction on a regular basis will make a significant difference in time.
Do you drink coffee at work ? Do you pay for it ? If you do it regularly, it may be costing you a small fortune. You may want to consider taking your own flask.
Do you eat at the cafeteria at lunchtime ? It may be convenient, for you and the person who does not have to pack your lunch, but add up the daily costs over a year.....
Around the House.......
Do you use the services of a house cleaner ? Is there a way to scale down, or do away with the expense ? This will depend on your working arrangements, and the size of the house and family. If you have children that are old enough, you can actually have them do it, and negotiate a better rate.....
If something is not being used, turn it off. It's as simple as that. Whether it be a light, a radio, or a computer, everyone in the house should simply get into the habit of turning something off when it is left behind. Especially if you have a family, it adds up very quickly.
Look at what you are using. Did you buy any appliance larger than needed, "just in case" ? You may not be using the extra capacity, but you are sure paying for its power consumption.
Look at the power guzzlers: Anything that produces heat, uses a huge amount of electricity. Don't use more than you need. Turn the temperature on the hot water down just a touch, and dress a bit more to be able to turn down your electric blanket. When you buy a new device, look at the power consumption (in the manual), and see if it is more energy efficient than what you have got. The savings in electricity will eventually be a contribution towards the purchase expense. The simplest example will be light bulbs. Energy efficient bulbs cost more, but you save twice: Once on the power consumption, and again on the longer replacement cycle.
Heating: There is no need for the house to be boiling hot inside. You can tone it down a bit, even if you have to wear a sweater inside. A few degrees will make the world of difference to your utility bill. Do you have central heating, supplying a room not often used ? Consider blocking it off from the rest of the system, and only use a free standing heater when the room is needed.
Phone: Besides looking at how much time is spent on the phone, you may want to reconsider your package. Phone companies are always restructuring to create more attractive options for new customers, so scratch around, and see if there is something that suits you better.
Do you have stuff you don't need ? You have two choices: Firstly, if you want to free up cash to add to paying the bills, take it to a consignment store. This way, you will get more for it, even if you wait a bit longer. Alternatively, you can trade it for what you do need, so you don't have to lay out money right away.
