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Balance Household Budget:
We are now going to take another swipe at expenses to reduce the
monthly costs even further. Our goal in this phase is to reduce
expenses until you can balance your budget, and then you will be able
to eliminate your debt and save even more. Look at each of your
expenses in your worksheet. Is it something you can do without or even
reduce? Take your time to really think about it. What can you do
yourself to reduce or eliminate another monthly expense? Keep working
line by line, reduce or eliminate the expenses that mean the least to
you first, until the budget is balanced (at a minimum). Everyone has
different priorities in their lives. One person will feel extremely
deprived without all the cable channels, while for another it will be
not big deal. My grandmother would never give up getting her hair fixed
once a week, but would be willing to give up almost anything else to
save a buck. Concentrate on your (and your families) priorities. This
way to will be able to enjoy live as much as possible and still be able
to make your financial situation look better. If you can further make
reductions comfortably (even if only temporarily) you will be able to
use that amount to reduce debt and increase savings. By no means should
you leave this step without a balanced budget. Make sure your expenses
are less than or equal to your income. Throughout this site you will
find many ideas you can use to further reduce expenses (like saving
energy and cost saving kitchen tips) and make your spending go farther
(such as frugal shopping tips, coupons, and online shopping codes).
Every little bit helps and no matter how small it makes a difference.
Some
reduction options to consider:
- Reduce
dining out - Reduce dinners out, pack lunches, when you do
go out enjoy it fully. Depending on your current lunch routine, you can
probably save at least $5 - $10 per day.
- Think
twice before going out for that latté or spending that extra
$1 in the vending machine. You can make your coffee at
home, and pack those drinks and snacks to take with you. If you think
and pack ahead, you can have more control of your diet and be able to
have exactly what you want for those daily snacks.
- Consider
carpooling - With the price of gas these days, you can
really make a dent in the rising gas bill.
- Cut
back on the new clothes - We all need clothes, but
consider cutting back if this is a large expense for you. Stop by a
thrift shop and look around. You can find great bargains, but may need
to look around a bit.
- Reduce
the premium cable channels
- Reduce
reoccurring service expenses. For hair cuts, pedicures,
manicures, lawn services, etc, add and extra week or two to your
current frequency. For a service that is now done every month, think of
trying to hold out for 5 or 6 weeks
- Do
it yourself - Can you or a family member reduce or
eliminate a service by doing something yourselves? Think about lawn
care, home repairs, pool care, ironing instead of dry cleaning, etc.
- Can
you reduce your magazine subscriptions? Subscriptions are
only cheaper than buying the magazine at the stand when you are
interested in every one. If it's a craft magazine for instance where
you will only be interested in a few pattern per year, consider only
picking up the ones you'll really enjoy.
- Netflix
instead of the video store or movie theater - This is one
subscription that I fully believe in. My family and I are able to enjoy
many movies for a low monthly charge and no late fees. I have only had
good experiences with this company. They quickly turn around the moves
and strong customer service if you have any problems. When trying to
reduce expenses this is an easy way to get a lot entertainment for a
small cost.
- Free
entertainment - Check your local paper or their web site
for free activities, art shows, free concerts, etc that you'll enjoy.
- Revisit
the library - If you read a lot this is a great option to
buying all the books then having to get rid of them. Most libraries not
only have books, magazines, and news papers; but also have audio books
and DVDs.
- Reduce
grocery costs try generic - In most cases you will not see
a difference with items like canned tomatoes, beans or corn. Try it you
may like it. Some stores even have generic organic brands.
- Go
Vegetarian - Most people won't want to do this every day,
but occasionally will save on the food bill. Meat is often the most
expensive item we purchase in the grocery store. Try a meatless meal or
two a week can really help out. Beans, cheese, eggs, and tofu are great
meatless options.
- Raise
your car insurance deductible- Do you really need full
coverage, or a $250 deductible? If you have your emergency fund and can
cover it, consider at least raising your deductible.
Think creatively and make cuts where you can comfortably first.
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Frugal Finances