|
|
Top 10 Ways to Cut
Spending
Kristine McKinley
Do you run out of
money before you run out of month? Do you wonder where your money goes
each month? Do you struggle to find money to invest for retirement,
emergencies and other financial goals? Here are 10 tips to cut your
spending and stretch your dollar to the max:
1. Consider dropping your home telephone line. Your cell phone is
probably all you really need, and most likely it has free long distance.
You could save $30 or more per month by dropping your “land line”.
2. Cut back on trips to Starbucks or other premium coffee shops. Often
called the “latte factor”, spending several dollars per day on luxuries
like premium coffee can really add up. For example, if you spend $4 for
a cappuccino five times a week for 50 weeks out of the year (you’re on
vacation the other two weeks), you would spend $1,000 in a year. Try
treating your trip to Starbucks as a treat instead of a habit. You’ll
save money and probably lose weight too!
3. Pay your mortgage payment bi-weekly instead of monthly. You’ll pay
less interest and pay off your mortgage faster.
4. Carry cash instead of credit cards. Psychologically it’s harder to
spend cash than it is to use the credit card. You’ll spend less and save
on interest charges.
5. Use the “envelope system” for groceries, dining out, entertainment,
and other discretionary spending categories. This will help you track
how much you spend in these categories as well as prioritizing your
spending.
6. Raise the deductible on your homeowners and auto insurance policies.
It’s not wise to file claims for small losses anyway (insurance
companies love to raise rates after you file a claim), so a higher
deductible will save you money now and in the future.
7. Buy regular gas instead of premium. Most cars don’t need premium
gasoline. Also, take public transportation if it’s available in your
area. Take advantage of “park and ride” and carpooling options.
8. Plan your purchases to avoid impulse buying. Take a list with you to
the grocery store and stick with it. Studies show that impulse buying
can add $10-50 to your grocery bill – ouch!
9. Go to the library instead of the bookstore. If you’re an avid reader,
give yourself a book budget for books that you will want to keep, and go
to the library for everything else.
10. Take a vacation at home. Check out all the local sites and
happenings. You’ll rediscover your hometown and save on travel and hotel
costs.
These are just a handful of ways you can cut spending and stretch your
dollars, but if you follow these tips you’ll discover you have more
money at the end of each month to apply to other financial goals, such
as saving for college, retirement or just for a rainy day.
Article Source:
www.articledashboard.com
About
the Author
Kristine A. McKinley, CFP, CPA, and founder of Beacon Financial
Advisors, teaches individuals and families how to invest and plan for
retirement, college, and other financial goals. Kristine offers
financial and tax planning on an hourly, fee-only basis.
To sign up for free financial planning tips, worksheets, checklists and
more, visit
www.beacon-advisor.com.
© 2006 Beacon Financial Advisors, LLC and Kristine A McKinley
|
