Five Tips to Help Cut Down on Spending

Times are tough. You may be wondering what in the world you can do to make ends meet. With job layoffs, fewer available jobs, and a slow economy in general, everyone is trying to cut their spending. The U.S. is not only experiencing a flat or barely growing economy, but also war. Perhaps, due to current economic uncertainty, you are just suddenly conscious that you need to save more money and spend less.

Here are some ways you can painlessly cut down on spending by spending less and saving more:

• Lower your energy consumption. Turn off lights when you leave a room. Turn off the TV when you are not watching it. Run the dishwasher only when it is full and the washing machine only when you have a full load. Turn down your hot water tank just a few degrees. You will not notice the difference and you will save money.

You also consume energy when you drive your car. If you have a long commute to work each day, try to set up a car pool to lower your gasoline expenses. Make fewer trips to run errands by doing more each time you are out. Keep your car serviced, since it will use less oil and gas if it is running well.

• Slash your phone bill
  
  If you have a cell phone, check out plans where you get minutes for a set monthly charge and have no long distance fees. Use that cell phone for your long distance calls instead of your landline phone. You will see a precipitous drop in your phone bill. Lose the add-on phone features that you never use or can do without such as call waiting, speed dialing, and call forwarding.

• Raise your car and homeowner’s insurance deductibles
  
  Raise the deductible on your auto collision insurance to at least $1000. If your car is older and paid for, drop collision insurance all together. You will knock a healthy amount off your car insurance payments. Be sure you have enough homeowner’s coverage or renter’s insurance, but check into raising your deductible.

• Practice preventive maintenance….in all areas of your life
  
  Get your health and dental checkups regularly. You will head off any possible minor problems before they become expensive problems. Practice preventive maintenance at home as well. If you own your own home, affiliate your furnace filter once a month, keep your gutters clean, and fix any minor problems before they become major problems. If you rent, keep your home in good condition so you can get back your deposit if you decide to buy or move. Consider buying renter’s insurance. If there were a fire at your home or some other catastrophic event, you can’t easily affiliate your possessions without renter’s insurance.

• Downsize your life
  
  Look at the "stuff" in your life. Do you really need to buy hard-back books from a bookstore? You could, instead, go to your public library or buy paperback books. Do you rent movies every week? Subscribe to digital cable and you will eventually see all the movies you want. Shop at stores with reasonable prices instead of stores that sell expensive, high-end labels.

Do you eat out several times per week? If your family eats out once or twice per week for dinner and there are four of you, you probably spend $40 - $60 for dining out per week. That is an average of $200 per month and $2400 per year. If you eat fast food, learn to enjoy cooking again. Not only will you save money, but you will also be healthier. When you cook, you can control the amount of fat and sugar in your family’s meals. You can also cook in quantity and freeze some for later, which will save on the grocery bill.

Try these tips to reduce your spending. You will be surprised at how much you save.

~Rosemary Carlson

Rosemary Carlson is a freelance writer in finance and business. Wooden Nickels is a syndicated financial column dedicated to helping people handle their personal finances.