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Reduce discretionary spending in your budget

June 20, 2008

Money is staring to get tight for a lot of people right now as costs continue to climb. I’ve already written about ways to save money by clipping coupons, going green and dollar store shopping.

Now I’m going to suggest evaluating your spending on things that you may have an option to scale back on or eliminate from your budget.

How much are you spending on cable television or a satellite dish each month? Consider reducing your package or doing away with cable or satellite all together.

Are you paying for mobile phones and a home phone? Are you using both phones? If you have a home phone that you haven’t picked up in months, you may want to consider cancelling the service. Also, see if your mobile phone plan fits your phone usage. Sometimes increasing your package can actually save you money. If you have a plan that allows for 400 minutes of anytime talk, and you’re using 600, you’re probably spending a lot on overage fees. Adjust your plan or reduce the amount of time you talk during peak hours.

You could also look at bundling your television, internet and phone services with one provider. This can sometimes be less expensive than paying for each service individually. One thing I would caution you to do is to find out if the price you are given is an introductory rate. Some services offer very low rates to encourage people to sign up for the bundle, but the cost increases after a certain period of time. If you are being given an introductory rate, make certain you know what the normal rate will be.

Review your insurance plan. You absolutely want to make sure you have adequate coverage, but double check to make sure you are not over-insured. Several years ago while reviewing my car insurance policy, it came to light that I was over-insured. Making a few changes knocked about $150 off of my plan for the year.

Look over your subscriptions and memberships. Ask yourself if you’re really getting something out of them. Why bother subscribing to a magazine that you barely read or paying for a gym membership if you hardly ever go.

If finances are really tight, it’s more important to pay your electric bill or buy groceries than it is to pay for satellite television or a subscription to “Men’s Health” magazine.

These are just some ideas of ways you can save. Sit down and review all of your expenditures and see what things you can eliminate from your budget.

And remember, these cuts don’t necessarily have to be permanent. You can always add luxuries back into your budget when your financial situation improves.

Written by admin · Filed Under Misc., Tips 

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