You are in debt. Not the greatest place to be. Perhaps you have taken necessary steps to help escape debt, such as credit counseling. Or you might just be looking for ways to save yourself a little extra money in order to stay out of debt. Whatever the case may be, sometimes cutting down on your spending in one place can help you out financially in another.
Consider for a moment where your paycheck goes. Some amounts you pay out are necessary; rent, house payments, utilities, insurance, and so forth. In cases like that, there is little you can do the lower payments. Then what about the rest of your check? Groceries? Clothing? Office supplies? Children’s needs? What are you buying? You can always go back and look at your credit card bills or bank statements to get a clearer idea of where your money goes. You may be able to cut a few corners if you understand your spending habits and what items you can let go of.
House Refinance. A refinance loan will completely pay off your current mortgage, leaving you with a brand new loan that typically has better rates than your initial mortgage. Saving money is the prime reason people refinance, and if you have not done so and have a nice credit record, asking a lender about refinancing could potentially save you hundreds of dollars every year.
Home If you have a family, chances are you won’t be able to change much about the television channels you get; everyone watches something different. However, couples or single people might find themselves saving over $400 a year by cutting out cable. Consider for a moment what you truly enjoy watching on television – do you have a few shows you simply must watch? These days many networks are putting their shows on the internet (ABC had the whole season of Lost available), or you could even wait until the DVDs come out. One newlywed couple cut out TV for a whole year after their marriage and found they were more active and grew together more.
Shopping How often do you shop? How much did you pay for that pair of jeans? Consider how much it may actually cost to make a sweater – should you really be paying $80 for it? Stores prey upon our joy of shopping and our willingness to spend money on items we like. They can lure us with claims of “Only $54.99!” when it was that very price to begin with (yes, stores do this and it is technically not false advertising). Buy 1, Get 1 often mean spending the exact same amount as when both are on sale. Pay attention to prices and avoid buying items when you really don’t need them an see how much you save.
Eating Snacking on a box of cookies? Staring at that cereal you thought you might try? Experts say we come out of stores with 60% of our purchase not on our original list. As you walk through the isles, it can be very easy to grab something and toss it in your cart. This can be helpful if you suddenly realize you are out of mayonnaise and forgot to put it on your list, try sticking to exactly what you need and a $100 trip may only cost you $30.
