WAVESS

Little Known Ways to Cut Down Our Expenses…Especially During The Recession

Posted on 18. May, 2010 by Jo-Ann in Money

Will the recession ever end? Truth is it must come to an end. Hmmm…….. But the real question is when? Many economists believe that SPENDING is the key! This will in turn create some efficiency within economy. However I say we need to be WISE with our spending habits! It is going to take some time before the economy is fully stabilized so until then we need to budget for what we spend. We all incur some kind of monthly or weekly expense. Some fixed while others may vary with our taste and preference. We usually have no control over our fixed expenses usually our mortgages or rent and so we can try to manage our variable costs accordingly. For many of us it is not easy to go from splurging money on shopping sprees and expensive meals to overlooking that perfect outfit and even enjoying a home cooked meal. Here are some suggestions for a 30 day challenge….Remember “A penny saved is a dollar earned.”

1. Prepare a budget!
Carefully planning out your expenses versus your revenues. To start, write down your monthly income and that portion you would like to put towards your savings account. Set a goal for yourself. For instance by the end of the year I would like to at least have $15,000 *(an estimate) in my account. Write down all your expenses, and decide what you can spend on luxuries of your choice for instance shopping , that is after you pay your fixed expenses and yourself (savings account).

2. Observe Your Spending Habits
After you’ve created your budget, you’ll need to observe your spending for a month to see how strictly you adhere to it. There are various online systems you can use to track your money for example Wesabe.com. In observing your spending this will highlight your expensive habits, like that $6 frappuccino you think you just can’t resist, and help you decide what luxuries are crucial to your survival and those that are simply “drying” up your savings account.

3. Fixed Expenses Are Priority
Identify the bills that you need to pay in order of influence. Mortgage or rent, Electricity and water are three significant expenses. Take pride in making those insurance and car payments on-time.

4. Prepare Meals From Scratch You can prepare meals from scratch instead of buying expensive take-out and prepared or frozen foods. Eating out is by far one of the biggest expenses most families have. Do the math you might realize you are spending well over $300 or as much as $400 a month on fast food. You can prepare meals at home for less than half of that $300 dollars. Give it a try you’d be surprised! Bring your lunch to work. Try putting yourself on a lunch budget whereby you treat yourself one or two times per month.

5. Coupons Anyone!
Clip newspaper and other print coupons for necessary items you would normally purchase. While they may only save you fifty-cents or a dollar here and there, those savings can add up over time.

6. Alter Your Beauty Routine Instead of going to the spa…the manicurist and the pedicurist every week…try and cut down those lovely visits to every two weeks. Instead of going to the hairdresser every week you may wanna cut down that visit to every other week. Invest in your own mani and pedi essentials, your favourite shampoos, conditioners and hair treatments. It won’t hurt to do your own nails and hair sometimes. That will definitely save you some serious cash and you may even improve your beauty skills.

Feel free to add your comment. Let me know how it goes!