What are some practical ways to cut expenses and live more frugally?
July 19, 2012 2 Comments
International Money Pile in Cash and Coins (Photo credit: epSos.de)
Saving money and living within your means is a state of mind. If you learn to keep a lid on your expenses by controlling your spending, something amazing will happen. You will reduce your needs. As you reduce your needs, you cut expenses, and that means you have more of your income to invest in your future and in God’s work.
While this space will not allow for an exhaustive treatment of all the ways to slash your expenses, here are ten fabulous ways to get started on your quest to find the money you didn’t know you had. Check back next week for part two of this article, which contains ten more ideas for finding that elusive money.
1). Shop with cash. Adopt a policy of cash only. No checks, no plastic. You’ll find it’s difficult to turn over good, old-fashioned paper money. Statistically speaking, you’ll spend 30 percent less over time.
2). Toss the catalogs. Mail-order catalogs are the most insidious form of spending temptation known to humankind. Keep a trash can close to the mailbox and just toss them out before you can be tempted to take a look.
3). Don’t spend coins. Even if your bill comes to $4.02, hand the checker $5 and you’ll end up with $.98 change. At the end of every day, empty your pockets, wallet and purse into a collection center like a jar or drawer. As soon as your container gets full, take it to the bank.
4). Self-talk. Before you spend, ask yourself, “Do I need it? Do I already have something that would do just as well? If I do need it and do not have a reasonable substitute, do I have to buy it now or can it wait a while? If I absolutely cannot wait, have I found the best deal?” Once you can answer yes to that final question, put the item on hold and wait a full 24 hours. You won’t believe how many times you’ll change your mind.
5). Don’t overpay your taxes. You love to get a big fat refund from the IRS, but the fact is, you’re lending money to the government interest-free. Go through your tax return, assess your current income situation and make appropriate adjustments so you get to December 31 as close to owing or being owed as little as possible. That way you can use your money now or put into your savings account so you’re earning interest.
6). Prepay long distance calls. If you’re tired of hidden fees and mysterious charges, go to your local superstore to purchase a prepaid long distance calling card. You’ll get a low flat fee and no surprises.
7). Learn to cook. If you’re eating out because you’re too busy to cook or too lazy to learn how, we need to have a little talk. Both excuses are costing you a bundle. The average family of four spends upwards of $5,000 a year eating out. Reserve eating out for special occasions, and everyone will value it as the special occasion it should be. Whatever it takes, learn to cook at home and then take pride in the meals you cook. Change your attitude about cooking and you’ll change your bottom line.
8). Never pay full price. If you must shop, for goodness sake make sure you’re waiting for sales, buying from a discounter or bargain Web site. My theory is that everything eventually comes on sale, and if it doesn’t, I probably don’t need it.
9). Know your bulks. Just because you’re buying from a discount warehouse doesn’t mean it’s a bargain. Compare unit costs.
10). Get supermarket savvy. The most impulsive place on earth is your supermarket. The best defense against the marketing onslaught is to shop with cash only. Go with a list and by only what’s on the list. As long as you know in your heart that you can write a larger check or simply swipe that plastic, all that really good-looking stuff is going to sabotage your best efforts every time. That’s just human nature. So use your human intelligence to trump your nature and you’ll win at the grocery game.
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