Helpful Ideas on Lowering Your Monthly Bills. We will show you how to Save money on your cable bill, phone bill, utilities bills, credit card bills, student loan bills, and other montly payment bills. Save $100's a month!
One of the questions consumers often face when making a buying decision is, "New or used?" We typically want the new product for the obvious reason: We believe new is always better. And while that's typically true for certain types of products, such as HDTVs and underwear, a savvy shopper knows when a used product is a perfectly reasonable alternative. Here are five used items that are just as good as a new version, and sometimes even better.
Cars:
Buying a used car will save you a lot of money and the difference in quality of the resulting ride is fairly negligible, provided it's not too old. Look for used models that are about one to two years old. Often a car that's only a couple years old will cost a fraction of its original sticker price, and is there really much of a difference between the 2013 and 2014 model? Not really. If you buy new, you're mostly paying for negligible feature upgrades and the cachet of having a "new" car. Regardless of the car's age, though, you should always have an independent mechanic check it out before buying.
Baby and toddler clothing:
When you shop for new baby and toddler clothes, the reaction is always the same: "That costs how much, again?" There is absolutely no reason to spend money on kids' clothes that you'll only be able to use for a brief period of time before they outgrow them. And unless your newborns are already coveting designer labels, they don't care what they're wearing, anyway. I'd bet that if you blindly tossed a rock at the people in your social circle or work colleagues, you'd hit someone with a closet full of baby and toddler clothes they've been meaning to discard. My wife and I spent hardly any money on kids' clothes (except the occasional pack of onesies) until my oldest was at least 4 years old. If this isn't an option, there's always thrift stores and Goodwill. (Just wash it all first in very hot water.)
If you're still rocking the "analog" versions of books and movies (you know, books with actual pages and movies that come in disc form), buying new is not only unnecessary, but pretty darn expensive. Does it really matter that someone else has thumbed through the book before you did? Or peeled the cellophane off that "The Dark Knight Rises" Blu-ray and dinged it up a bit? No, it doesn't. You'll still get the same amount of entertainment and you'll have more money to spend on other things, like a Kindle and e-books. (This rule also applies to textbooks.)
Fitness equipment:
If you're big into exercise or are just starting out in an effort to get healthy and lose weight, buying brand new fitness equipment is just silly. Weights and other standard gym equipment don't have expiration dates and can be used for quite a long time. Equipment such as treadmills and more complex equipment with electronic components should be scrutinized more closely, but buying used in that area can likely save you thousands of dollars. And let's be honest, when it comes to fitness, many of us eventually drift into "don't have time" excuses and gradually lose interest. If that happens, you're stuck with some pretty expensive equipment you're not using.
Tools:
If you properly take care of tools, they will last a very long time. And most Average Joes don't have a need for expensive, specialized tools, so stocking up on expensive and fancy tools you'll rarely use isn't worth it. A screwdriver is a screwdriver. It's simple and no single one is really better than the other. When it comes to power tools, that can be trickier and any used purchase should be made from a trusted source.
Buying used might not be glamorous, but it will keep your budget in check.
Larry Bills is the Director of Editorial for Offers.com and opines often on the best ways to lead a money saving lifestyle.
Help Lower Your Monthly Bills is a blog dedicated to helping you save money on your monthly bills. We find the best money saving tips and offer them on our easy to navigate blog. We also offer a easy to use workbook that is guaranteed to lower your monthly bills and save you hundreds of dollars a year. Hopefully you find this information helpful and put it to use in your montly budget!
Food is one of those variable expenses that can definitely hit your budget below the belt. I mean, have you seen the price of beef lately?
According to the latest figures from the Bureau of Labor Statistics, the average U.S. household spent about $4,000 on groceries in 2012.
The good news is that couponing, shopping sales and making a list aren’t the only ways to save a substantial amount of money on your grocery bill. In the video below, Money Talks News money expert Stacy Johnson offers some tips to slash your food costs by up to 50 percent. Take a look and meet me on the other side for additional suggestions.
Prepackaged products are convenient for the consumer, but they also come with a much higher price tag. Although it may be a tad bit time-consuming, buying whole food products, such as fruit from the produce section, whole chicken, block cheese and fresh vegetables, will save you a substantial amount of money.
In other words, put your hands to work and stop paying others for something you can do on your own.
2. Buy generic
What’s the point of buying the high-end version of the product if the generic one is comparable in both quality and taste? That’s exactly why you should give those generics a shot, and save between 20 and 50 percent on your grocery bill while doing so.
I was once a Froot Loop junkie until I discovered that the Walmart brand not only tastes better, but is half the price.
And with store brands, you can also rest assured that you’re not wasting money, as most grocers offer a money-back guarantee on their products if you are not satisfied. So why not give it a shot? You may just be in for a treat.
3. Seek alternative sources
Be sure to check out alternatives to the major grocery chains to substantially reduce your grocery bill. And, no, I’m not referring only to warehouse clubs, such as Sam’s Club and Costco, but local meat markets, fruit stands, food coops and salvage grocery stores. The latter stock dented cans, closeouts and items with torn packaging — at rock-bottom prices.
Please note that dented cans have the potential to be hazardous to your health. Check out this document to learn more.
4. Store food properly
Storing your food in the most effective manner possible will extend the food’s shelf life and significantly reduce the number of trips you make to the grocery store each month. You can butter cheese to prevent mold, store perishables in smaller quantities in durable, air-tight containers, and freeze meats.
Also, take a look at this list of optimal storage times from FoodSafety.gov.
5. Shop strategically
Just like everything else in life, saving big bucks on your grocery bill requires that some sort of strategy be implemented.
For instance, you should never go to the store hungry because you will be tempted to buy all sorts of junk food and other items that look good. Instead, fill up your food tank before heading out so you don’t need to resist the urge to give in to your cravings.
If you’re a member of a warehouse club, take advantage of the bulk offers on the items that you consume frequently. The Sam’s Club in my neck of the woods offers a jumbo box of oatmeal for $8.99, which is what I used to spend for two small boxes each month. But thanks to what I like to call the “mega-pack,” we are still eating away three months later.
6. Look forward to leftovers
There’s nothing better than a good old-fashioned family feast that provides plenty of leftovers, enough to last for several days. In my home, after a holiday meal or other special occasion I know I’ll be spared from cooking duties for a few days.
Now, I’m not suggesting that you cook a Thanksgiving feast for a family of four in an ordinary week, but it’s not a bad idea to prepare a large enough meal to yield leftovers that can be consumed for lunch the following day.
7. Set boundaries
The ultimate goal here is saving, correct? That’s why your needs must supersede your wants. Isn’t it funny how we all of a sudden crave items that we hadn’t thought of before we spot them in an aisle at the grocery store? You must not give in to your cravings, but be disciplined enough to stick to your grocery budget and list.
8. Check the bottom racks
Manufacturers pay for shelf space, and they sometimes cover the cost by passing it on to the consumer. When you’re grocery shopping, take a moment to look at the lower shelves for the cheaper products that you may have been overlooking in the past.
9. Plan ahead
It’s important to plan ahead if you want to cut your grocery bill in half. For instance, you won’t spend money on items you already have in your home.
I’d also suggest creatively combining the food products already at your disposal and preparing meals with items that have been collecting dust on the shelf. In other words, be wise with what you already have, and don’t let food go to waste.
Help Lower Your Monthly Bills is a blog dedicated to helping you save money on your monthly bills. We find the best money saving tips and offer them on our easy to navigate blog. We also offer a easy to use workbook that is guaranteed to lower your monthly bills and save you hundreds of dollars a year. Hopefully you find this information helpful and put it to use in your montly budget!
Living paycheck to paycheck is stressful, and it doesn't take much to turn a paycheck-to-paycheck lifestyle into a financial disaster. What if your car breaks down? Or, you need to take extended sick leave from work? Or, your company lays you off?
If scenarios like these strike fear into your heart, it's time to change your financial situation. It won't be easy. Yet, the peace of mind will be worth the effort and sacrifice. To get off the paycheck-to-paycheck treadmill to reclaim your finances and your life, try these four steps:
1. Take a survey. When it comes to personal finances, many people try to make changes without knowing what they need to adjust. You might think you're spending too much on groceries, for instance, but maybe you're really overspending on entertainment. Or, you may assume paying off your credit cards will be the fastest way to free up extra money, when you really need to downgrade your car. So before you set any financial goals, take time to do a thorough personal financial audit. What are your biggest bills each month? Where are you spending money that you don't even realize you're spending? You might be surprised at how much you don't know about your spending habits. Arming yourself with knowledge is a great way to get started.
2. Set attainable goals. You won't get anywhere financially if you drift along aimlessly, trying only to put food on the table and pay the electric bill on time. But you may start to see progress if you simply set some goals. Goals will focus your efforts and lead to success. Start by setting smaller goals that are easily achievable. Reaching these small goals will give you the confidence you need to tackle larger, longer-term goals. A few goals you might start with include saving $100 a month for the next three months, paying off $1,000 in credit card balances by March, trimming $50 a month off your grocery bill and tracking every dollar's worth of spending for 30 days. These goals are baby steps, but any one of them will help bring your journey toward financial freedom. Once you achieve a tiny goal, set a slightly larger one.
3. Make your budget realistic. Now that you know where you're overspending and what your first financial goals are, it's time to budget. But don't go about this the wrong way. Too many people budget based on fantasy rather than reality. If you've been spending $800 a month on groceries, you're not going to whittle your grocery budget down to $400 a month overnight. Start by setting a budget based on what you're already spending. If you've spent $750 to $800 on groceries for each of the past three months, budget that much each month. You know you'll have enough, and you won't go over budget.
4. Be pound wise. Have you ever heard the phrase "penny wise, pound foolish?" It's a phrase that refers to our tendency to get wrapped up in the small things, so that we miss the larger, more important ones. If you spend all Sunday afternoon clipping 25-cent coupons, but then order $30 worth of pizza for dinner, you're probably being penny wise but pound foolish. When tackling your financial problems, it's important to look for the areas of biggest impact. Eliminating your $80 a month cable subscription will have a bigger impact than cutting out that $3 a week you spend, for instance, on the occasional drive-thru coffee. You'll save even more money if you drop your cable subscription and drive-thru coffee, but the cable subscription has a much bigger impact.
So to begin this journey, look for the three biggest changes you can make in your finances among such things as: refinancing your house, paying off high-interest credit card debt, downgrading your car, eliminating several restaurant meals a month.
These changes could lead to significant progress, more than smaller changes you may make later as you gain momentum in your financial freedom journey.
Abby Hayes is a freelance blogger and journalist who writes for personal finance blog The Dough Roller and contributes to Dough Roller's weekly newsletter.
Help Lower Your Monthly Bills is a blog dedicated to helping you save money on your monthly bills. We find the best money saving tips and offer them on our easy to navigate blog. We also offer a easy to use workbook that is guaranteed to lower your monthly bills and save you hundreds of dollars a year. Hopefully you find this information helpful and put it to use in your montly budget!
Here is a list of things you can do to immediately help lower your monthly bills. This list involves minimal change and can have a TREMENDOUS effect on your budget. Put all or some of these items to use and be on your way to financial freedom!
Making Cents of the Dollars
33 Proven ideas to make your budget work and get your Debt under control:
Re-shop auto, home and life insurance to see if you can bring down your payments.
Downgrade your cable package, or get rid of it entirely.
Disconnect your home phone if you have adequate cell service at your home. Or downgrade to a cheaper package.
Buy and sell clothes at your local consignment or shop at Goodwill.
Have a massive garage sale. (If you’d rather be out of debt than have an item, choose to sell it to help you get you there.)
Advertise higher quality items on Craigslist, Facebook, or your local newspaper to get better prices.
Focus on buying mostly sale items at grocery store or generic brands to reduce your cost.
Use a grocery store awards program to earn money off gas.
Cancel unnecessary expenses like magazine subscriptions, newspapers, manicures, pedicures etc. Anything that could be considered a “want” instead of a “need” should go until you are out of debt or greatly decrease your debt.
Go to the matinee movies instead of paying full price (and skip the concessions).
Or better yet, use the Red Box for at-home movie entertainment.
Get temporary work or seasonal part time work to boost your income.
Read books from the library or take a few trips to Barnes & Noble to complete a book.
Buy your most expensive groceries in bulk at Coscto: meats, breads, cheese, produce, paper products. Establish a monthly grocery budget for the additional needs at regular grocery stores.
When eating out, skip the soft drinks and stick with water. Skip the extras too (dessert, etc.).
Plan your errands more efficiently to conserve gas.
Find friends that you can trade services with…haircutting, handyman, photography, babysitting, pet-sitting.
Give home-made gifts, baked goods, or service IOU’s rather than expensive presents.
Boxed cereals are expensive; switch to oatmeal, eggs or fruit for more nutritional and financial bang.
Call the utility companies and get on a budget plan to give you more consistency with expenses each month.
Set a spending limit with family at Christmas and/or draw names.
Use exercise videos, walking or hiking instead of paying for the gym.
If your haircut is too expensive, find a less expensive stylist or see if your hairdresser will cut you a break on price temporarily – ours did.
Say “no” to hosting and/or attending in-home parties where you feel pressure to purchase.
Does your family live nearby? Once a week dinners with mom or dad saved us a meal out of our shopping budget. Additionally, it usually led to leftovers and our parents looked forward to our visit each week.
Make your coffee at home instead of buying it each day.
Pack your lunch – not once a week, but regularly.
Make extra dinner servings on purpose to have leftovers for lunch.
Our dentist advised us we could skip the fluoride treatments if we were using a daily dental rinse – which we did… and bought on sale.
Program your thermostat for savings on heating/cooling when you’re not at home.
Tempted by certain retail stores? While digging out of debt, avoid window shopping these places where you’ve failed to control your impulses before.
Give**.
Many may say, “What? I need my manicure!” or “My kids will only eat box cereals!” But trust me. If you are serious about climbing out of debt and changing your life, the only thing you need is a roof over your head, clothes on your back and gas to get to work to bust your way out of this.
Plus, take comfort in knowing that you don’t need to eliminate these things forever. Personally, I look forward to hiring back our housekeeper and treating myself to a few pedicures next summer. But until we are debt free and have a fully funded emergency fund, we’ll be focusing on using the dollars we bring into our home to set us up for a lifetime of success.
**Many wonder about Number 33 (Give) because it seem counter intuitive to most of us. One thing we never stopped doing – even in the worst of times – was giving. We always gave money to our church, our favorite charities, and foundations that we believe in. It’s easy to say “I can’t give. It’s not in my budget.” But if we’re looking for a lifetime of success and influence – not just the latest gadget or status symbol – how can we afford not to give? Giving reminds us that we can live for a purpose greater than this world and all the temporary treasures it offers. It helps keep everything else in perspective. So pick and choose from our list above – do one or two or everything on the list – but don’t leave out number 33. We can attest from firsthand experience, it will radically transform your life!
Help Lower Your Monthly Bills is a blog dedicated to helping you save money on your monthly bills. We find the best money saving tips and offer them on our easy to navigate blog. We also offer a easy to use workbook that is guaranteed to lower your monthly bills and save you hundreds of dollars a year. Hopefully you find this information helpful and put it to use in your montly budget!
With 2014 underway, New Year’s resolutions are a dime a dozen. Study after study concludes that annual resolutions are rarely kept. In the words of Mary Poppins, resolutions are like a pie crust promise — easily made, easily broken.
Resolutions aim too high. While getting out of debt, spending less, and saving more are admirable goals, they do little to change our day-to-day actions. Instead of lofty resolutions, we need to change our core habits.
Here are five habits to develop in 2014 to significantly improve your finances.
1. Track One Expense
A lot of people hate to budget. Tracking every dime spent is tedious and often unhelpful. Just because one knows where they spent their money doesn’t mean their budget actually influences their spending decisions.
Instead, develop the habit of tracking just one spending category. Pick an expense that you believe may be a problem area for your budget, and keep track of spending in just that one category. Once you get spending in that category under control, start tracking the next expense that’s causing you to blow through your budget.
2. Audit Your Monthly Bills
We’re taught to check the batteries in our smoke detectors twice a year when the time changes. Likewise, make it a habit to examine your monthly bills. You may find that you can get rid of services you don’t really need (e.g., 500 channels of cable you never watch) or at least reduce the cost. I call this the One-N-Done method of saving because you make just one change that saves money month after month.
3. Automate Saving
One of the hardest habits to develop is saving and investing money. Fortunately, we can easily automate this process, which makes developing the habit of saving much easier. You can automate the building of an emergency fund by setting up monthly transfers from a checking account to a savings account that pays a decent interest rate. Even better, sign up for your company’s 401k or an IRA and have money set aside each month automatically.
4. Learn Daily
Build learning into your daily routine. That may mean spending 15 minutes every day reading a book about finance or your career or a side business. It could mean following blogs relevant to finances or your chosen career. Successful finances and building wealth are about more than spending less than you earn and saving for a rainy day. You need to learn how money works, and have a good grasp of the fundamentals if you want to turn your money into long-term wealth.
5. Track Your Progress
You can’t improve what you don’t measure. The measuring stick for finances is a personal balance sheet, which lists what an individual owns and owes. Commit to updating your balance sheet every month. It takes just a few minutes, and this habit will cause you to refocus every month on your financial progress. To make it even easier, there are free online tools you can use to track your investments and debts automatically.
In the words of Aristotle, “We are what we repeatedly do. Excellence, then, is not an act, but a habit.” The same is true for financial freedom.
Help Lower Your Monthly Bills is a blog dedicated to helping you save money on your monthly bills. We find the best money saving tips and offer them on our easy to navigate blog. We also offer a easy to use workbook that is guaranteed to lower your monthly bills and save you hundreds of dollars a year. Hopefully you find this information helpful and put it to use in your montly budget!
Edited by Krystle, Amelia in the Forest, KommaH, Kene and 56 others
"If by covetousness or negligence, one withdraw from them their ordinary food, he shall be penny wise, and pound foolish."
E. Topsell:Four-footed Beasts (1607) An important way to save money is to reduce expenses. There are many ways you can stretch your dollars and help avoid that "too much money at the end of the month" feeling. Some of these steps will take planning and investigation but they will be well worth the effort. Others you will be able to implement immediately. Some will require a small investment but have a substantial long-term payoff. Your ability to implement those will depend on available cash and your budget.
What you will need first, is a clear idea of where your money is going; then you can look at ways to cut fluff and lower the cost of your required living expense. Always keep in mind that it is not just about cheaper; it is about efficiency. Analyze your needs and do the math. Most importantly, however, is to understand that reducing expenses is a lifestyle change and a change in your thinking patterns. Never let yourself believe that pennies do not count.
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Determine where you spend your money. If you do not know where your money is going, you are most likely spending too much. You can get a solid idea in as little as one month and as you continue, you will see patterns develop that you can address. Write down everything you buy down to the last dollar. Do not stop at the obvious expenses like rent, utilities, gasoline and food. Include the ancillary items like sodas and snacks as well asgum or tobacco. Use a Row-by-Column ledger, spreadsheet, or other software to keep track every month. If you only use a debit card for your purchases, the bank will do this for you.
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Immediately remove unnecessary routine purchases. While it is likely this will not be the largest savings area, it is important and easy. Is the coffee shop on your way to work necessary? How critical are the three sodas or snacks a day you buy from the office vending machine at $1.50 each? A cup of coffee that you made at home is only 25-35 cents, as is a soda you bought in a store as part of a 12-pack. Do you seriously have to rent all those movies (and pay those late fees) each month? Have you checked to see whether your library has movies, or calculated the cost of switching to Netflix and BlockBuster Online? Those ten lottery tickets… the odds against you are astronomical. This is quick and most of it is habit. There will be some psychological pain at first but when you add up the dollars you’ll see a big difference instantly.
Make a shopping list before you go to the store and stick to it. This is especially helpful to impulse buyers. Did you ever go in for a carton of eggs and come out with a basket of 15 items? Did you need 2 for 1 bags of marshmallows or the jumbo box of cereal just because it was on sale? No. You probably did not need half of those extra things but ended buying them anyway. A shopping list gives you a clear idea of what you need and eliminates unnecessary purchases.
Heating and cooling (gas or electric): When you leave the house, set your thermostat to an "away" setting. Do not set it so far from comfortable that it takes too much of time to return to comfort when you get home: 65°F or 18°C in the winter and 80°F or 27°C in the summer might be reasonable numbers to use. A programmable thermostat will do this for you automatically.
Set it to adjust the thermostat a while before the heating or cooling is needed, such as in the pre-dawn hours to wake to comfortable temperatures and in the mid-afternoon to arrive home to them, and to provide less heating or cooling immediately when it will not be needed.
Consider investing in ceiling fans – you can get these for as little as US$20 and they dramatically reduce cost of heating and cooling by circulating the air more efficiently. If your expenses are already low, and you will not be staying where you are for long, you may not save enough to pay for the fan, however. Also, consider electric blankets and mattress pads.
Electric: Lighting is expensive. When you leave a room, turn off the light. The idea that it takes more energy to turn on a light than to keep it on is false, as turning on a light only burns as much electricity as burning it for fractions of a second.[1] Energy efficient bulbs work. This is an investment that will pay off over time, but there is a significant savings to be gained. (this energy calculator can help). Turn off your computer/laptop when you are not using it – (probably) the only reason you leave it on is convenience. Any voltage adapters (including the ones in stereo components) use electricity, even if they are not charged or plugged in to the device. Of the total energy used to run home electronics, 40% is consumed when the appliances are turned off. Either pull the plug on the devices when not in use or buy a device to do it for you, such as a Smart Power Strip ($31 to $44, athttp://www.smarthomeusa.com www.smarthomeusa.com]If you have a digital box with an auxiliary AC outlet, plug your TV into it, and program the box to shut off the outlet when the box is turned off. For stereo components, plug them all into a power bar that can easily be switched off when not in use.Open the drapes during the day for light instead of burning electricity. Only use electricity when you need it.Clean the radiator on the back of your refrigerator, if it is dirty, this will improve the efficiency of one of the larger consumers of energy in your household.
Water:Save water, save money. Invest in a shower-reduction kit – they cost nearly nothing and will start saving you money immediately. They work by reducing the flow to the showerhead and the change is barely noticeable. Learn to take quicker showers – an inexpensive egg timer is a good way to help. Repair leaky toiletsand faucets – this is an enormous waste of water and easy to fix. Reduce your lawn watering to minimum needs. If you have a pool, keep it covered when it’s not in use to reduce evaporation – also, if it’s heated that will dramatically increase evaporation as well (only heat your pool to keep it from freezing, and invest in a thermal blanket). Also, if you are not using the faucet turn it off -- e.g., when brushing teeth do not leave faucet running. Do not buy bottled water except in rare and unusual circumstances; excess chlorine can be removed from tap water by letting it stand in a pitcher in the refrigerator for a few hours, and the fluoride in tap water makes teeth stronger, reducing dental problems and bills.
Gas and Miscellaneous: Do laundry as often as necessary but as little as possible – for many people this is a pleasant step. Reduce the temperature of your shower by a couple of degrees; the less work your water heater does the more money you’ll save. Also keep your water heater thermostat as low as practical; 120 degrees Fahrenheit is often recommended to minimize power consumption and risk of burns. (Turn off the house power before opening any panel to adjust it.) Use the microwave instead of the oven whenever possible – the cost just to preheat an oven is more than the cost to cook a meal in the microwave. Open the windows when it’s nice outside to reduce heating (and cooling) costs.If you live where natural gas is used only in the winter months, arrange with your local utility to do a seasonal shutoff so that you are not saddled with fixed monthly service charges for the "privilege" of being connected to the gas service even though you are not using it. With one supplier, it is $17/month. In the 8 months that you do not need the service, you're charged $17 X 8 = $136, but the season shutoff and turn on costs $54.
Cable and Telephone: Do you need a thousand channels and every single premium channel available including the high definition packages? You can save the full $100+ on your cable bill every month by watching TV free online, and save most of it while avoiding time-wasting and unnecessary-purchase-inducing commercials by renting DVDs instead, for instance through the vending machines Redbox or through the mail-order company Netflix. However, if you have cable internet, it may actually be CHEAPER to keep basic cable than to pay for internet alone. If you want to save money, take a close look at your priorities. For your telephone, shop around based on your use. If you make many long-distance calls to family and friends, perhaps one of the unlimited plans would save money. If all your calls are local, you probably can get by with a bare-bones option. Consider that your cell phone may have free long distance; therefore, removing the need of having long distance on a landline. Look into the Voice-Over-IP (phone over the internet) for your telephone solutions. Some services, such as Skype, gChat (from Google), and Windows Live! allow you to make free video calls to other users as well as make low cost calls to cell phones and land lines from your computer - including international calls. Other VoIP services, such as Vonage, are not an option for people with DSL, which is tied to their landline.
Cell phone: Text messages cost money. "Oh no, I have unlimited text!" Oh? How much does that option cost you? Do you even need a cell phone? Does everyonein your family need a cell phone? Parents should place rules on cell phone use. Another thing to consider is if you need a cell phone then do you need a landline at home? Consider consolidating. If your cell phone use is occasional only, consider a pay-as-you-go plan. Do consider, however, that a cheap unlimited data and navigation plan can sometimes save money by allowing instant price comparisons and quality checks.
Cell Phone Saving Plans: Some mobile phone plans are genuinely good and money-saving; but make sure that you shop around first for the deal that best suits you. Many companies offer either contract or PAYG plans based on the cell phone habits of the user, for example, someone who texts an awful lot or someone who prefers to call. For example, some companies reward you for topping up for a little bit a month with hundreds of free texts, which can prove handy and are much cheaper than calls. Remember, calls to networks other than yours, and landlines, are often pricier. Avoid "traps" in cell phone plans such as inordinate per-kilobyte or per-message rates, often over some threshold. Look for a plan with modest, if any, overage charges. For instance, Sprint smartphone data is unlimited.
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Reconsider Gasoline and Miscellaneous Auto: When gas was rationed during World War II, a popular slogan was "Is this trip necessary?" Ask yourself that every time you get in your car. Make a list before you go to the store so you do not have to make extra trips. Do not go for a drive for pleasure – walk instead or choose other forms of entertainment (for example, reading or exercising). Check the pressure in your tires. Convertibles get better mileage with the top up (although the slight pleasure for the mile or two per gallon sacrificed with the top down is cheap entertainment, assuming one has already paid the considerable extra money for a convertible). A poorly running engine is a huge waste – even a spark plug change can make a big difference, as can clean oil. In addition, the less you drive, the less often you will change tires, oil, or need maintenance. That is a savings-over-time, of course, but it will mount up. Another way to save gas (and money) is to change your driving habits. By simply driving more slowly, or less aggressively, you can save significant amounts of money (calculate for yourself at this web site [2]). Take particular care to avoid driving in heavy traffic, which causes no joy and little efficiency gain over public transportation, and to avoid where parking will be expensive. Public transportation mapping and schedules online, often provided by transit agencies, can make that a great alternative in cities.
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Cut Down on Entertainment: It is astounding how many people complain about money then describe the latest release of a movie with the cost of theater popcorn. In addition, professional sports event, a music concert, or tickets to a play can run hundreds of dollars for a couple on a date. Seriously, can you tell the difference (blindfolded) between a $30 bottle of wine and a $9 bottle of wine? When you do dine out, think about the prices on the menu first. Consider a meal share if the restaurant offers that option. Never, ever order delivery of expensive food; you are wastefully enjoying only the food and not the atmosphere when you could cook for yourself far more cheaply. Look for vacation bargains – consider taking the kids camping instead of one of the expensive amusement parks.
Most people, except for serious athletes, actors and musicians (as the case may be) cannot tell any difference between a great and good performance. Even if they can, most will enjoy increased variety and frequency much more. Enjoy local high school and non-prestigious college sports, community theater and orchestras conveniently, for little money (with typically nice but inexpensive meals in the vicinity), and socialize and contribute to community spirit while you are at it.
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Make the most of your clothes and other fashion accessories rather than buying more unnecessarily. Rediscover and show off old ones "lost" in storage or the back of a closet, and organize your wardrobe (or whatever you keep them in) and habitsto prevent "losing" them again.
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Focus on Food: The only real difference between a $1.99 can of corn and a $0.63 can of corn is $1.36--and the satisfaction of knowing you're not overpaying largely to feed a cycle of ads to make yourself and others fret about not paying more. (Sure there are exceptions; people on low-sodium restricted diets will often have to pay more). The grocery store is a place you can save big.
Look for foods that are marked "WIC" for savings. Those have been approved for the Women, Infants and Children program by the USDA Department of Food and Nutrition Services… healthy, nutritious and inexpensive. That ring of cooked shrimp is on sale and sure looks tasty. Would you prefer a grilled chicken breast with green beans and rice? Make dining in an experience instead of just a convenience. It is possible to spend as much on home food as you would by eating out if you are wasteful.
Buy foods that are on sale, especially meats. Most supermarkets regularly cycle through various meats for specials; you will get to try them all just the same. The difference between expensive beef and other beef is just extra fat and tenderness compatible with not-thorough cooking in the expensive beef.
Invest $10 in a coffee pot, or $100 in an espresso machine (pump-driven is best, but expensive ones can die just like cheap ones). Making your coffee at home instead of purchasing your $1, $3, or $7 custom latte at the coffee shop will save you money.
Consider taking your lunch to work instead of buying lunch each day. Even an inexpensive lunch out is several dollars a day – do the math.
Use coupons whenever possible. Make sure these are on items you would normally eat so you do not buy groceries that will be wasted by sitting in your cupboards forever or spoil in your refrigerator. Also use buy store specials and use store customer cards when possible toward food purchases. Consider, however, that store brands are just as good as and often cheaper than name brands with coupons.
Look into joining a warehouse club. The price of the membership is usually made up in the first shopping. They carry name-brand products and take coupons. In addition, by not having to shop as often, you spend less money by not being in the store every week and risking impulse purchases. Warehouse club shopping must be done with discretion or you will not save money.
When purchasing meat items, aim for pieces where you can identify the body part from which it came. Ground beef, although cheap, is processed which increases its price. Tougher cuts of meat can be slow-cooked and made incredibly tender. Also larger pieces can be cooked in bulk and used for several different recipes. (Cook one large piece and when tender, tear it up for use in enchiladas, sandwiches, stews or soups, etc. Simply store in individual portions, labeled with the type of meat and date, for later use.) Organ meat (chicken hearts and gizzards, beef hearts, tripe) are often far cheaper than normal cuts, and can be used to make tasty and filling stews.
Avoid large packages of fresh produce to avoid spoilage; frozen produce will extend the shelf life of all your fruit and vegetables.
Measure product use carefully (like soap powder); do not be wasteful with the products just because it comes in a large container.
Buy products you will use instead of substituting just because it is on your list and the only item available. Are you going to enjoy that box of cereal that is not your regular brand, or is it going to sit on your shelf?
Be aware of the influence that product promotions do have on your purchase habits and do your best to track this.
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Address your insurance costs: The fastest way for some people to reduce monthly expenses will be in the area of health, auto and life insurance. Companies that sell those are incredibly competitive. Get some bids from different companies. When you do this, bear in mind that lower initial premiums will not always be the most cost efficient!
Auto Insurance: Look at your deductible. Avoid jumping to increase your deductible – analyze the entire plan based on your needs and expectations; do a risk analysis first. If you have an inexperienced driver in your house and you do not have savings, having a high deductible might not be the best choice. If your car is financed, you may have minimum insurance requirements. However if you have a long history of good driving and you own your car, outright, you might consider a high deductible to save on premiums.
Health Insurance: Explore alternatives. Shop around for plans that are consistent and cost-efficient with your lifestyle. Consider your needs versus what you have. A single man in perfect health in his mid-30’s might choose a plan with a higher co pay or co-insurance and lower premiums, whereas a married couple wanting to start a family might do better with higher premiums but more extensive coverage. In other cases, prescription benefits might be the most important. The point is to look at what you must have .
Life Insurance: There is no question that this is important – for many people. The rule of thumb for someone with a family is three to five years' replacement income. However, if you are a 20ish single consider carefully and determine if you are over-insured. If you’re married in your mid-60’s have you looked at comparative plans from places like AARP? If you are most interested in "burial policies" then, again, these companies are incredibly competitive. We would like to leave our loved ones wealthy if our demise, but not at the expense of your quality of life right now.
Home (and Renter’s) Insurance: This can be a large expense and many home owners have no idea how much they’re paying because it comes out of their house payments – out of sight, out of mind. Review your plan with your agent. Are your personal possessions worth the $250,000 you have on the policy? Also look for areas that are lacking. Is water damage covered; snow damage; hail damage? Think whether you will need those. Is anything important excluded? Is anything irrelevant included? Yes, Great-Aunt Martha’s rocking chair has sentimental value, but do you need a special rider to cover it?
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Consider pre-owned items: This is a great way to save significant amounts of money while recycling! If you absolutely must buy something, there are options other than a mall anchor store or a big-box superstore. There are large thrift stores (e.g. Goodwill) and smaller church-run stores that have some incredible bargains on everything from home knickknacks to appliances to clothing. It is beyond imaginable how fast a 4-year old will outgrow shoes (when that happens, re-donate them so somebody else can benefit). Look for garage sales – your neighbors will not think less of you because you bought the winter jacket they are trying to sell. Have your own garage sale and they might want what you no longer need. There are online sites that often have bargains (like Craigslist.org, Overstock.com and eBay.com).
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Actively manage your credit: A poor credit score costs tens of thousands over the years in increased interest rates and insurance costs. You may even lose your job or miss a job application. Pull all three reports; challenge everything that appears incorrect. Pay all bills on time or early. Pay off revolving debt (credit cards) and put those cards away.
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Avoid the overdraft on debit cards: An overdraft may seem like a good idea, but it is simply one-step nearer to a pricey pitfall. Even if the bank you are with does not charge you for using the overdraft, they will charge you if you even conform over it. The good thing about debit cards is that you are not using money that you do not have, and an overdraft will most weaken your discipline over your finances. Do not do it! If you must currently have credit card debt or an overdraft do not forget to compare interest rates, on all your cards and overdraft. Consolidate loans to the most inexpensive one while paying off the debt.
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Save money on razors: If you shave compare razors for durability. Some shave satisfactorily for many, many times longer than others, making their cost of up to a few dollars each cartridge relatively insignificant.
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Avoid or minimize addictive or mind-altering substances, those which are illegal, currently expensive, decrease current productivity, decrease future productivity, cause health problems, or decrease judgment undermining reduction of expenses. Alcohol has all of these adverse consequences.
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Avoid items, however cheap or appealing, which have a primary effect of causing large and unnecessary spending. Some of these items, such as printers and suits, though rarely vehicles, are helpful to get rid of even if they are not broken. Culprits include:
Inkjet printers (a laser printer can cost as little as $100 and cost about 3 cents each page to print, rather than 25 cents or more, with fast waterproof output.) Color laser printers can be cost-effective if much color printing is needed, though they are not great for photos. Online or in-store photo printing is a better deal than the high-quality ink-jet printers suited to photos.
Wool suits and iron-requiring cotton clothing, unless important to creating an impression needed to earn money in one's occupation. Iron-free" cotton shirts with a fine pattern to hide residual wrinkles look great, save over a dollar each time plus time, and gas in laundering. Synthetic pants save multiple dollars each laundering and do not feel odd on legs because they are less sensitive than arms.
Most television and, to a lesser extent, movies. The purpose of television, from a financial perspective, is to cause you to watch advertisements to become unhappy that you do not own things you would not mind not owning. Few of these things are more than frivolous. More insidiously, there is a purpose to keep you watching, which drains efforts from possibly more enjoyable or educational (and thus potentially income-producing) activities. Many movies are about focusing on lavish and extravagant living and create a mindset incompatible with frugality.
Fancy cars. The fastest cars available accelerate about twice as fast as, corner about a third harder than, and have slicker, shinier seats than the cheapest. The differences are much more subtle. Mass-market cars such as family sedans and minivans and professional-driver-market vehicles such as Town Cars, vans and pickups have enormous companies optimizing them for things such as cost, comfort, fuel consumption, safety durability, and ease of maintenance. More expensive cars, even when not driven beyond the abilities of any others, often make large sacrifices in some of these things for small improvements in others. They also involve much higher overhead because of smaller sales volumes. If many people in your area replace good cars unnecessarily, a well-maintained and carefully inspected used car can save a great deal.
Video game consoles and other devices, electronics, with vendor lock-in. These may seem inexpensive and can be a good deal if one is sure one wants only few games or other accessories to play often. However, adapting them to various games or other uses requires paying an excessive markup each time. In contrast, a computer has many games available inexpensively once they've been out for a year or two and many made available free by their creators much like wikiHow, such as Nexuiz.
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Avoid excessive housing expenses. A safe area and, if you have children, one with a school where they will be permitted to learn in peace is important. If you enjoy a big yard and big windows, or convenient regular access to varied shopping (itself not helpful in frugality, like neighbors living extravagantly and often beyond their means), recognize, and pay for that. However, a house sits in the rain and rots slowly as it is being (hopefully) enjoyed, and can be replaced or copied on months' notice in ways that are being made more efficient continually. There is plenty of empty space to build them, and less-densely-developed areas can be expected to compete to make money from increased development over time if that is demanded. As recent history shows, it is not a great "investment" though it does have significant residual value and some people do make money with them.
Help Lower Your Monthly Bills is a blog dedicated to helping you save money on your monthly bills. We find the best money saving tips and offer them on our easy to navigate blog. We also offer a easy to use workbook that is guaranteed to lower your monthly bills and save you hundreds of dollars a year. Hopefully you find this information helpful and put it to use in your montly budget!
