10 Random Tips to Reduce Spending
One of the biggest challenges in personal finance is figuring out ways to reduce the regular bills that we all face each month. These continuous regular expenses simply fill up our budget, leaving us less money to invest for the future – and also less money to spend on things that we enjoy.
1. Don’t eat out. Depending on your lifestyle this might seem drastic, but if changing your eating habits can help stop debt from accumulating, then it is defiantly worth it. For most people eating out is just as much a form of entertainment as providing nourishment. You can accomplish the same thing by planning fun meals at home.
2. Turn off cable. Many American families spend $30 to $80 per month on cable television. While turning it off may seem inconvenient, a creative family can fill the time they spent watching television with activities that are much more productive and healthy. Even if you still need the entertainment, consider renting movies instead. If you watch less than 10 each month, rentals may be more cost effective than cable.
3. Spend more time outside. In general inside activities have a way of costing more than outside. For example, if you have to choose between going to the park or going to the mall, the mall has a much greater potential for incurring expenses.
4. Review your insurance rates. Investing a few hours in looking for cheaper car and home insurance can pay great dividends. Even something as simple moving your car insurance to the same company that insures your house can result in significant savings. Many companies offer online quotes, so you can compare rates online.
5. Make lists. By keeping track of everything you need for the week on lists, you can save yourself time and money. Extra trips to the store mean wasted time and help encourage unnecessary purchases. By planning ahead you can make sure you are getting things at the best price. For example, milk is significantly cheaper if bought during your weekly trip to the supermarket than if it is bought at the last minute from the corner gas station.
6. Pay at the pump. This helps cut down on the number of impulse purchases in gas stations.
7. Trade movies with friends. Circulating a simple email among your friends with a list of movies you own and are willing to lend can reduce the amount you spend renting movies.
8. Understand your health insurance. Make sure you understand how the co-payments work for your health insurance. In many cases one clinic will end up costing you $300 while the preferred clinic would only cost $15. May sure you know ahead of time, so you don’t have to worry about it later. When someone is sick or hurt is not a good time to go combing through your policy.
9. Banking fees. Make sure you aren’t paying any fees for your banking. If you are, call your bank and ask about other options. $10 per month for a checking account may not seem like much, but if a simple telephone call can reduce it to $0, that is money you can spend in more important areas.
10. Call your internet company. Ask them if you have the best rate they offer. With some broadband companies, they will offer you a better rate if you ask. It costs them a lot to acquire a new customer. Some of them will give you a reduced rate if they know you are shopping around.
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