Is your New Year’s resolution to cut back on spending? No one likes the feeling of looking at our bank account and realizing we have little to no money left and our next paycheck is still a week away. By saving money here and there we allow breathing room in our budgets and can prepare for the future.
Here are the first places you can look to shave some money off your monthly expenses:
Phone Bill
A phone bill is often thought of as a non-negotiable expense. Today phones are necessary to communicate, whether it be with friends, family, coworkers, service providers and more. However, a lot of people are paying more than they need to for phone services. If you are have a landline and a cell phone, you may want to think about canceling the landline and directing all calls to your cellphone. As far as your cellphone plan, ask the company if there are any less expensive options, such as a prepaid plan, which do not require a contract and can be cheaper than a regular plan. Performing an online search for cheap prepaid plans will give you many options to weigh.
Insurance Policies
The list of different types of insurance Americans generally have goes on and on – car insurance, homeowners insurance, health insurance, life insurance – but do we know if we are getting a good deal on our policies? Sometimes people are paying for more insurance than they need without realizing it. When you sign up for insurance, you tell your provider information that can be used to get a lower rate, but this information can be ignored or misplaced; sometimes circumstances change. Call your providers and see if there are lower rates available. For example, you may be paying more than necessary for car insurance if you drive less miles than when you originally signed up for the policy.
TV and Entertainment
Cable television can cost an arm and a leg, so if you are trying to save, why not cut the cable? There are many entertainment options online, and Netflix offers hundreds of movies and television shows for around $8 per month. If you can’t bear to part with your cable box, try to negotiate with the company to make sure you are getting the best rate – many cable companies start you on a discount rate and raise it after a few months.
Debt Payments
With student loan debt and credit card debt increasing, the minimum loan payments can be a big monthly expense. You want to escape the debt trap by being resourceful and making a payment plan. Start your focus on the debt with the highest interest rate and pay as much as you can toward it each month. If you have really high interest rates on your debt, look into doing a balance transfer or getting a debt consolidation loan to lock in a lower rate. Look into some of the federal programs to help you pay off student loans faster.
Food Budget
For many of us, food and groceries take up a large chunk of our monthly spending. The first, most obvious step is to resist the temptation to go out to eat. Make meal plans for the week ahead and buy the necessary ingredients at the grocery store. Try to make easy recipes that can be turned into two meals (dinner and leftovers for lunch). Though difficult at first, once you get into the habit it will become easier and more fun.
Mindset
One thing all these tips have in common is requiring you to prioritize saving money over other things you may enjoy in your life. It will be difficult to give up things you want or enjoy, but changing your perspective can help you overcome the psychological challenge of saving money. Confide in your close family and friends that you are working to save money; that way they will be able to encourage and help you. It’s also important to spend time focusing on the things in your life you are grateful for. Appreciating simple things can make it easier to make a few sacrifices.
Courtesy of ABC News
http://abcnews.go.com/Business/top-ways-save-money-month/story?id=19431345#6
