Cut Back on Spending tips
At first it may seem difficult to limit spending
and stick to a budget, however there are a few practical changes that you can make everyday that will cut your
spending more than you expect.
Firstly, alter credit car behavior. Start to pay
cash whenever possible. This will help you avoid making a purchase unless you actually have the money available. If
you decide to make a credit card purchase, be prepared to pay the balance off monthly. This will save a lot of
money through avoiding interest charges. If you already have a credit card balance, then transfer to a card with a
low interest rate. Also, find a card that does not charge an annual fee.
Pack your lunch
Another tip is to pack your lunch everyday. All
of those lunch hours spent at restaurants will add up. Bringing your own lunch can save you several dollars every
day, which will add up over time.
Reduce phone charges
Use your cell phone during off peak hours. Some
people will spend a couple hundred dollars a month on phone charges. Avoid this by making most calls during off
peak times. Check with your service and plan to find out when you have cheaper or unlimited
Stop throwing away the Sunday newspaper before
skimming through the advertisements. Clip some of those coupons and check out the sales. This may seem tedious, but
the savings are often worth it. Many stores will double or triple the amount of the coupon. This technique can save
you up to 20 or 30 dollars each time you head to the food store.
Additionally, refinance. Mortgage rates have been
extremely low over the past year. This has been a great opportunity to reduce the monthly house payment
significantly. If you are planning to have your house paid off prior to retirement, then you may want to factor
this in before refinancing.
Finally, bundle your insurance. Many insurance
companies will offer their customers lower rates if they purchase multiple policies. For instance, some people use
the same agent for multiple cars, and others combine their cars and house. Always keep in mind that a dollar here
and there really begins to add up. Avoid the temptation of thinking that changing your spending habits wouldn’t
save that much money.