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Written by Sue Truman,
B.A., Working Solutions. © Working Solutions, Inc.
In
these times of economic change and job uncertainty, many people are taking
a closer look at how they spend their money and ways to cut expenses.
We sometimes associate
cutting costs with making things from scratch or searching for the best
bargains. While these strat-egies do save money, most of us don’t
have that kind of time. But there are ways to cut expenses that don’t
require hours of extra work every week.
Cutting Costs
If you’re interested in reducing your spending, it’s helpful
to take a look at the whole picture: planning a budget, examining your
attitudes and awareness about money and getting the whole household involved.
Plan A Budget
Keep track of all that you spend for two months. Almost everyone
who has done this is surprised at how much they spend in certain areas.
When you know where your money is going, you will be better able to make
decisions about where to cut back.
Set short and long
term financial goals and keep these goals in mind when you’re
tempted to buy impulsively. And don’t forget to reward yourself in
little ways for reducing your spending.
Examine Your Attitudes
About Money
Consider these questions:
- Are you always trying
to keep up with your friends and neighbors?
- Is shopping one
of your main recreational hobbies?
- Do you often spend
beyond your means?
- Do you look at advertising
with a critical eye?
- Is your spending
consistent with your values?
- Do you prefer using
credit to using debit or cash?
- What messages are
you sending your family and friends (intentionally or unintentionally)
about money?
Involve The Whole
Household
Have a family meeting and try to reach consensus. This can be a good
learning opportunity for children: managing and learning about money is
an important life skill. Starting at the school-age level, there’s
a lot that children can learn from these discussions.
Spending Less For
Food
There are many ways to cut food costs without cutting out nutritional
basics. Some of these suggestions promote healthier eating as well as
eliminating expensive eating habits.
- Buy generic or store
brands if the quality is acceptable. Sugar, flour, salt, bleach, vinegar
and ammonia are safe bets.
- Buy perishable foods
in season. They are less expensive and they’ll be fresher. If space
allows, freeze items.
- Buy in bulk. If
you’ve got the room to store extras, you can benefit from economies
of scale.
- Cut down on eating
out. More than 30 percent of the average American’s food
costs are incurred in restaurants, snack bars and fast food places.
When you do eat out, try eat-ing out for breakfast, lunch, or catching
an "Early Bird" special for dinner.
- Pack your lunch
and snacks for work. Eating out during your workday is a common budget-buster
that "eats away" at your disposable income.
- Try "cooking
for the week." Prepare and freeze a few of the week’s meals
on weekends, so you’ll be less tempted to buy convenience foods
when you’re too busy (or tired) to cook.
Shopping Purposefully
- Make a weekly shopping
list. That’s easy–the hard part is sticking to it. Try to
shop just once a week.
- Consider joining
a warehouse club. First check the prices at your usual store
to make sure that there is enough of a price difference to warrant a
membership fee and an extra trip.
- Pay attention to
unit pricing. Packaging can be deceptive. Take a calculator to
help you figure out the best buy. Become aware of the going rate for
items so you will recognize a bargain when you see it. You cannot believe
the sales jargon; these days almost everything is "on sale"
or a "special purchase."
- Try out second-hand
and/or consignment stores for clothes, furniture and household goods.
Consider taking your unneeded items to a consignment store.
- Try to make major
purchases when the items you need are really on sale.
Or, look in the classifieds for major appliances, equipment and furniture.
It’s easy to find great bargains, and many items are almost new.
- Pay with cash instead
of credit. Interest payments add up over time.
- Buy clothes that
don’t require dry cleaning.
Conserving Energy
Get a free energy audit. Almost half your energy bill goes to heating
and cooling your house. Call your local utility company for a consultation
from a conservation specialist. There is usually no charge and they can
give you the best advice for your particular situation. These are some
standard tips:
- Keep your thermostat
at 68 degrees in winter.
- If you have a fireplace,
make sure the vent to the chimney is closed when you don't have a fire,
to cut off the flow of cold air from the outside.
- Bake breads, cakes,
cookies when the oven is already hot (as for dinner) so you don’t
pay for heating it twice.
- Install a thermostat
timer so that you won’t be heating the house when you’re not
home or asleep at night.
- Install blinds and
curtains that help regulate heat.
- During the hot summer
months, hang your laundry on a clothesline instead of using the dryer.
- Use water sparingly.
Hot water is the second largest contributor to your energy bill.
- Use cold water for
most laundry loads.
- Install a flow regulator
in your shower heads.
- Fix any dripping
water faucets and "running" toilets.
- Re-cycle: It will
help conserve energy and may lower your refuse pick-up fees.
Recreation
Avoid shopping as recreation (sometimes known as "retail therapy").
Find less expensive alternatives. For example:
- Walk in the park
- Exercise
- Fly a kite
- Attend a free outdoor
concert or craft fair
- Visit friends
- Throw a potluck
dinner party
- Take advantage of
free days at museums and other attractions
- Enroll in low-cost,
accessible adult education classes at your local school or community
center.
- Check-out the offerings
at your local park and recreation center for hiking/biking paths, free
exhibits, outdoor excursions, etc.
- Re-evaluate the
benefits of subscribing to specialized cable T.V. For the cost
of cable, you can rent a few movies every month and see what you want
to see, when you want to see it.
- Use the library.
A love of reading is one of the greatest gifts you can give your children.
As adults, lifelong learning becomes more important in our ever-changing
world. Many libraries also offer books on audiotape and pre-recorded
movie videotapes. You may be able to cancel a magazine subscription
or two by checking-out periodicals at your local branch.
- Purchase a membership
to an activity that you visit often such as the zoo, science museum,
or the "Y."
- Go to bargain matinees.
It’s half the price and there are shorter lines. Attend local theater
productions.
For More Information
Contact
us for additional information on financial issues such as:
- Teaching your children
about money
- Tax tips for parents
- Saving for college
- Stretching your
food dollar
- Estate planning
- Financial planning/budgeting
- Resolving family
conflicts about money
- Special considerations
for single parents, stepfamilies and custodial grandparents
- Bibliographies on financial issues
Want to read more
about smart money management? Or would you rather review one of the
other packets offered at convention?
Also remember that Working Solutions has a virtual library full of information on these and
other topics...go to their site, and look at Today's Library™ for the topics that
best suit your situation.
Working
Solutions Service is available to you through the Union-led Benefits Trust.
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