TRIMMING THE FAT -- CUTTING MONTHLY
EXPENSES
Everyone spends money on unnecessary
things. Most of us don’t stop and think before we pull out
our wallets for small purchases. But, those small purchases
add up quickly. Below are different categories where we
tend to overspend. Make a daily log of every little thing
you buy and you will see how much money you waste every
month.
Groceries
First rule is
never shop on an empty stomach because you tend to buy a
lot more items. Cut the junk food from your grocery list.
Not only will you save money, but you will improve your
health. If you really have a craving for some ice cream,
fine indulge yourself once in awhile. You’ll soon see that
the less junk you eat, the less desire you will have for
it. Look for store coupons before you head to the grocery
store. Often times, stores have buy one, get one free
sales, so take advantage. Just because something is on
sale, or there’s a gallon jar of pickles on sale, don’t buy
it if you won’t eat it.
Cook at home. You will save a lot of money if you prepare
your meals at home. The added benefit is that your meals
will likely be healthier and you can spend quality time
with your family as you all chip in and prepare the meal
and eat together.
Dining
Out
If you go out to
lunch every day at work, you are likely spending $5.00 -
$10.00 per meal. Even a meal at McDonalds costs about
$6.00. So, if you add that up over the course of a month
you are spending an average of $150.00 per month on lunch.
If you save this money, over the course of the year, you’d
have $1,800.00 in your savings account. Now if you are also
going through the drive-thru getting coffee and a muffin
for breakfast, add another $60.00 on your monthly tab. If
you’re too lazy to cook dinner, and are stopping to get
take out on your way home, add another $200.00 to your
monthly expenses. All in all, you are spending $5,000.00 a
year on eating out and have nothing to show for it. If you
eat a bowl of cereal and a cup of coffee at home, prepare
your dinner at home and take the left-overs for a brown bag
lunch at work the next day, you will quickly start saving
money. Of course there will be times you can eat out. If
you woke up late and forgot to pack your lunch, fine. If a
couple of your friends call and ask if you want to catch up
over dinner and drinks, fine. If it’s your sister’s
birthday, fine. Just don’t make eating out a daily habit.
Clothes
Stores love to
send fliers out advertising big sales. Before you leap into
your car, look in your closet and ask yourself, what do you
I really need? If the answer is nothing, don’t go. How many
times have you bought something, just because it was a good
deal. “This is 60% off, how can I pass this up?” Well, that
shirt is still hanging in your closet with the tags on it.
Don’t get suckered by sales tactics. If you really do need
something, buy at the end of the season when everything
goes on sale. So, again, the key is planning. If you need a
bathing suit, don’t buy it in May when it’s full price.
Wait until the end of August when the store is trying to
clear out the swimwear for the fall sweaters. Never buy
anything unless you have the cash in hand to buy it. Do not
put clothing purchases on your credit card because you will
end up paying double for the item with interest. If the
winter coat is $100.00, don’t buy it until you have the
$100.00 in cash. Paying the credit card company 22%
interest makes no economical sense.
Miscellaneous
Items
Go the library
and check out books and dvd movies. Cancel your monthly
cable bill.