Congratulations! You’re serious about getting your financial life under control. Fortunately, there is a lot you can do to quickly reduce or cut expenses. As a result, you just might find that your fiscal burden is lighter and your wallet is fatter.
Let’s get started.
Make energy expenditures less expensive.
After applying caulk, weather stripping, and sealants in the appropriate places, try the following tweaks to the heating and cooling systems of your home:
- Install a programmable thermostat. Basically, this allows you to conserve your heating and cooling by the time of day.
- Clean and maintain systems. Routine maintenance of your furnace, hot water heater, and air conditioning system is key. Keep air filters clean, wrap the water heater, seal air ducts.
- Reduce the hot water heater temperature to 130 degrees F. At that temperature, you’ll be able to effectively sanitize and clean dishware. Laundry is safely cleaned in cold water.
- Consider solar panels. If you are able to install panels, they can significantly reduce how much total electricity you need to run your home.
Transform transportation expenses.
Cut expenses by reducing car costs. There are a few key ways to drive safely and much less expensively:
- Adopt good driving habits and take care of your car. Fuel efficiency is improved by driving the speed limit, tire maintenance, and regular tune-ups.
- An oversized car payment may require a vehicle downsizing. At least until your finances are more manageable.
- Raise your deductible. Increase the amount you would pay before insurance pays out. That way you can save money on your monthly insurance premium.
- Old cars don’t really need collision coverage. Are you really going to sink money into repairs? No? Trim your insurance and use that money elsewhere.
Initiate insurance rate reductions.
Let’s face it, insurance companies want to sell you as much coverage as possible. It’s up to you to investigate how much overage you really need and adjust as needed to cut expenses. Here are a few tips:
- Forget loyalty. Shop every few years for insurance. You may be able to get better rates with a little searching. If so, move on.
- Consider buying multiple policies (home, auto, and life) from the same insurer. This way you could save up to 15 percent.
- Choose age appropriate insurance. Make sure your insurers adjust your rates as you age and qualify for various discounts.
Pay attention to payments and penalties
Becoming more intentional about the way you bank, use credit, and pay your bills is the fastest way to start fattening your wallet. Make these changes soon:
- Stay abreast of interest rates and challenge rising credit and banking fees.
- Don’t pay your bills late. If you do, you’re paying extra to do so.
- Compare banks. Shop around routinely. Beware fine print regarding “free” checking accounts and “courtesy” overdraft fees.
Feed yourself frugally.
Food is everywhere, at every price point. Dining options exist, literally, on every corner. You can easily spend a disproportionate amount of cash treating yourself to it all.
Cut expenses by shopping and cooking more often. Be sure to buy enough groceries for several days to avoid wasting time and money. Always use a list and pay with cash only to help mitigate impulse buying. Finally, keep grocery costs reasonable by buying produce that is in season.
Reduce cable, cell, computer network costs.
The digital age is not cheap, and most of us feel like we can’t live without every network feature. Believe it or not, you’re not a hostage to cyberspace and streaming services.
Cut expenses by reducing the number of cable channels or the internet speed you are using. Let your provider know you are planning to cancel or switch plans. They will likely offer you a deal to retain your patronage. Streaming services may also be a cheaper, more user friendly alternative.
Phone usage may be reduced as well. Landline costs may be decreased by employing an Internet phone company rather than a traditional phone company. Closely examine your cell phone plan and your actual usage, to negotiate a more affordable plan.
Shop smart… or not at all.
Use coupons and Groupons. Comparison shop. Barter. Swap. There a so many ways to get things and services without breaking the bank. You may even eventually start to enjoy the challenge of getting more for less or for free.
Living your best life, without constantly worrying about the next payment, dwindling savings, or too little cash in the emergency fund is incredibly freeing. Enjoy!
Denise Kautzer is a Licensed Professional Clinical Counselor and a Certified Public Accountant whose practice is located in St. Paul, MN. You can view her website at www.denisekautzer.com or contact her at denise@denisekautzer.com.