Whenever the economy slows people begin to look for ways to save money in their budget, even if their current income is not affected by the slowdown. Many individuals and families want to prepare in case their income sources are reduced or eliminated. Others are simply more focused on where their money goes due to all the press coverage about jobs and money.
Whatever the reasons, there are many ways to reduce spending, several of which require little or no sacrifice. For example, one person could easily be overspending by $500 per month just by purchasing a brand name signature coffee each morning, purchasing breakfast at the company cafeteria, going out to lunch with a few coworkers and smoking a full pack of cigarettes each day.
While all of these vices may not be relevant to every individual, it illustrates that there are opportunities to save money. Here are five ways to reduce spending this month:
Cancel Home Phone Service
Cancel or reduce home phone service (savings $40 - $50). Many Americans now use their cell phones as their primary phone, with unlimited or nearly unlimited minutes on many plans. Reducing a home phone with unlimited long distance to a basic service only (used almost exclusively for incoming calls) a typical person could save more than $40 per month. Canceling the service altogether could result in a $50 per month savings.
Reward Yourself in Moderation
Limit the number of coffee treats (savings $60). While many workers believe they could not begin their day without a jolt of caffeine from their coffee, there is no reason to buy a premium brand of coffee each morning. Instead, individuals or coworkers can brew the coffee themselves and save the gourmet “treat” coffee for Fridays as a reward for working hard all week or perhaps on Mondays as a reward for actually getting out of bed and going to work.
Pack a Lunch
Pack a lunch (savings $120). Similar to gourmet coffee, workers do not “deserve” to go out to lunch every single day. Instead, pack a lunch for a couple of dollars per day, and save the “treat” of going out to lunch for Fridays. The real treat is saving money every month which could be used to pay off debt or increase savings. Either one will reduce stress and result in a happier lunch with less indigestion.
Reduce Cable
Reduce the cable bill (savings $25 - $50). While completely canceling cable may not be feasible for many, especially with the need for high speed internet, reducing costs can be very easy. For many individuals, most of their time is spent on the major cable network channels with only a few hours per month spent on the premium channels. Reducing cable service from super premium to above average would still result in at least a $25 savings.
Also consider how important high definition is and how crucial the DVR is, relative to other financial goals. The answer may depend on whether an individual must reduce spending or simply wants to reduce spending. The other option is to switch to DSL, which is slower than cable internet, but still as much as ten times faster than dial-up. Combining the switch to DSL with a satellite dish for television could result in as much as $50 in savings per month.
Make a List
Make a grocery list before shopping (savings $50). Shopping carts are notorious for capturing snack foods and other last-minute items that either end up getting thrown out several weeks later or simply end up packing on the pounds. By making a plan before each grocery trip and covering all the basics; breakfasts, lunches, dinners, and snacks, families can easily save $50 per month. A grocery list also makes it easier to check the grocery store advertisements and look for coupons which could result in additional savings.
Bill Pratt - Bill Pratt is a former credit card executive turned student-advocate. He is the author of Extra Credit: The 7 Things Every College Student ...
