Top 10 Ways to Cut Spending

By: Kristine McKinley
Submitted: 2007-01-17 16:16:08
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

Do you run out of money before you run out of month? Do you wonder where your money goes each month? Do you struggle to find money to invest for retirement, emergencies and other financial goals? Here are 10 tips to cut your spending and stretch your dollar to the max:

1. Consider dropping your home telephone line. Your cell phone is probably all you really need, and most likely it has free long distance. You could save $30 or more per month by dropping your “land line”.

2. Cut back on trips to Starbucks or other premium coffee shops. Often called the “latte factor”, spending several dollars per day on luxuries like premium coffee can really add up. For example, if you spend $4 for a cappuccino five times a week for 50 weeks out of the year (you’re on vacation the other two weeks), you would spend $1,000 in a year. Try treating your trip to Starbucks as a treat instead of a habit. You’ll save money and probably lose weight too!

3. Pay your mortgage payment bi-weekly instead of monthly. You’ll pay less interest and pay off your mortgage faster.

4. Carry cash instead of credit cards. Psychologically it’s harder to spend cash than it is to use the credit card. You’ll spend less and save on interest charges.

5. Use the “envelope system” for groceries, dining out, entertainment, and other discretionary spending categories. This will help you track how much you spend in these categories as well as prioritizing your spending.

6. Raise the deductible on your homeowners and auto insurance policies. It’s not wise to file claims for small losses anyway (insurance companies love to raise rates after you file a claim), so a higher deductible will save you money now and in the future.

7. Buy regular gas instead of premium. Most cars don’t need premium gasoline. Also, take public transportation if it’s available in your area. Take advantage of “park and ride” and carpooling options.

8. Plan your purchases to avoid impulse buying. Take a list with you to the grocery store and stick with it. Studies show that impulse buying can add $10-50 to your grocery bill – ouch!

9. Go to the library instead of the bookstore. If you’re an avid reader, give yourself a book budget for books that you will want to keep, and go to the library for everything else.

10. Take a vacation at home. Check out all the local sites and happenings. You’ll rediscover your hometown and save on travel and hotel costs.

These are just a handful of ways you can cut spending and stretch your dollars, but if you follow these tips you’ll discover you have more money at the end of each month to apply to other financial goals, such as saving for college, retirement or just for a rainy day.

About the Author

Kristine A. McKinley, CFP, CPA, and founder of Beacon Financial Advisors, teaches individuals and families how to invest and plan for retirement, college, and other financial goals. Kristine offers financial and tax planning on an hourly, fee-only basis.

To sign up for free financial planning tips, worksheets, checklists and more, visit http://www.beacon-advisor.com

Article source: Expert Articles

Most Recent Articles in Personal Finance category

  • Tips And Options For Packing And Storage - By: Saith James
    It might be that you are concerned about your stuff. You need to pack and move it to a storage facility. Now you can say good bye to all your packing and moving concerns for you will find great tips here to guide you through this difficult process and make the experience fun and hassle free.
  • 10 Healthy habits of wealthy women - By: Melvin Bulan
    Many people have this misconception that those who are wealthy cannot have healthy habits. But it is not true. Often people feel that if you have money, you would have the habit of spending extravagantly and not saving even a single penny. However, it is not actually correct. One can stay wealthy and yet form this habit of saving which definitely a healthy habit.
  • Getting Your Finances Back on Track - By: Gregg Camp
    With so many people struggling to make ends meet in our current economic situation, it is more important than ever to take the time to inspect your finances to make sure that your money is being spent where it's needed.
  • Debt: Fifteen Amazingly Simple Ways To Reduce Debt - By: Margaret Rogers
    Do you find yourself in debt but not really conscious of how you got there or how you can get out of debt. We found ourselves in the same position and these are some of the steps we took to get back on the road to recovery. Here are some simple easily manageable ways to start the journey to financial freedom.
  • 7 Tips to Control Un-necessary Shopping - By: Melvin Bulan
    Recent studies have shown that almost 20 percent of the working people are in some kind of financial debt. The situation is very serious in the United States.
  • Getting the Best Home Mortgage Loan - By: Cristian Stan
    Any family would surely love to have a house which they can transform into a happy nest of a home later on. Aside from this want, a shelter that a home can give is the one of the first basic needs of man, according to Maslow's Hierarchy of needs.
  • Quick Cash from Payday Loans - By: Cristian Stan
    When you are in between big problems which seem like boulders trying to squish you, you must be working so hard to get out of these and get yourself out to safety. This situation may certainly happen when you are knee-deep in financial crisis yet you do not want other people to know about this.
  • Take Time for a Credit Self Check - By: Mark Zuckerberg
    Merchants, banks, employers, insurance companies: in today's economy, they're all busy reducing their risk. One way they do that is to run a credit check before lending you money, hiring you or even before selling you insurance for your car or your health. But while the institutions and companies are being pro-active in protecting themselves, you too can be pro-active by regularly performing credit checks on yourself. Just as breast self-exams are recommended for early detection of cancer, credit self-exams can discover threats to your credit in time to prevent serious problems.
  • Tips for What You Can Do to Regain Control of Your Debt - By: Mark Zuckerberg
    Debt counseling, debt management, debt settlement, bankruptcy—so many options, so little time. You don't know where to turn. What you do know is you need help. If you go to one of these companies, what will that do to your credit report? How much does it cost? Are you better off dealing with your creditors by yourself? As a board-certified consumer bankruptcy specialist in Indiana, I help clients find solutions. Sometimes bankruptcy is not the best choice in a given situation, so it's important for me to refer people to places they can get the help they need.
  • Organizing Your Finances - By: Geoff Springbaum
    If you're looking for debt settlement, one great place to start is with your own finances. Getting your finances organized is a key step in getting yourself on the road to financial freedom.