This is a guest post from a fellow Yakezie Challenge member Dana Joseph, known around the PF Blogosphere as “Mrs. Not Made of Money.” She shares money saving tips for a debt free life at her blog, “Not Made of Money.” She’s given readers 50 Great Homemade Gift Ideas and has tried to determine the best bang for your movie buck between Netflix and Redbox
It’s just one of those facts of life – Earning money is difficult but spending money is easy. More often than not we end up spending a lot more than we should. In today’s consumerist world, we find that most of the things we buy are ones we seldom or rarely use, simply adding to waste. There are several ways in which all of us can save money by cutting down on wasteful expenses.
To start cutting down on wasteful expenses, the first way to start is to make a list of your monthly income and all monthly expenses. Preparing this simple list will give you a fair idea whether you have a surplus left over or you’ve actually reduced your savings. Once the list is ready, go over all your expenses carefully, one at a time. Carefully scrutinize each item. Ask yourself what you can do without. What other expense can be lowered?
Accordingly work in that direction. Surely, you can cut down on one’s cable, telephone and electricity bills with a concerted effort on your part. Can you do without a few premium channels? Do you own both a landline as well as a cell phone? Do you really need both? Try making long distance calls from your cell phone instead of the landline – it’s cheaper. Get rid of the automated answering response from your phone company (unless that is free or just dirt cheap) and get yourself an answering machine if you have enough requirement for automated response.
Switch off all appliances when not in use. Use appliances, like the washing machine, judiciously. Try and plan out a weekly cycle for making full and efficient use of the washing machine. Use cold water in the machine instead. Not using the computer for a few hours? Shut it down rather than keeping it on standby or hibernate mode. Every small effort counts in the end towards reducing your electricity bill.
Prepare a monthly budget and more importantly, stick to it. See if you can restructure the bills for easy payments. Plan your shopping. Shop at discount stores, garage sales – wherever you can save money. Make full use of coupons and combo offers, refunds, rebates. Constantly follow up on rebate offers to make sure you get them. Avoid paying extra for anything.
Avoid the use of credit cards as much as possible. Pay cash for small amounts. Payment by card attracts interest and other charges if not paid on time. You’ll be surprised how much you end up saving by not using a card for small amounts. Never withdraw cash on your credit card – it works out to be very expensive.
Used to a certain amount of luxury? Try cutting down on expenses like entertainment, food and vices. Must you watch every new movie that releases? Cut down your visit to the theatre every once in a while. Avoid using the car for short distances. Walk it down if it’s not too far, cycle, or use public transport instead. Cut down on your gasoline bills.
Don’t be tempted to pick up the phone and order that pizza just because you’re too lazy to prepare food yourself…order fewer lunches. Try a few simple preparations yourself. A simple sandwich, some salad, and coffee are not that hard to prepare. This should help you cut down on that food bill. Do you drink or smoke? Resolve that you must stop. If you do drink, why not start by drinking at home, rather than at a pub or bar outside?
Remember that vices will harm you in the long run and add to your health bill as well.
Finally, go ahead and invest whatever you end up saving. You’ll be surprised how much money you have left over at the end of the year, which can be reworked towards other expenses. So go ahead, cut wastefulness and start saving!
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