How to Cut Expenses - 10 Ways That Make a Real Difference

Significant savings

If you're having financial trouble due to the recession and can't pay your mortgage or rent, sometimes clipping coupons does not make enough of a difference in your budget. Here are 10 ways to cut back that can save big bucks (but keep clipping those coupons!).

Instructions

1. Get rid of cable TV for a few months. My kids used to complain "there's nothing to watch" even when we had 130 channels. I now have old-fashioned rabbit ears on my two TVs, and we watch DVDs. There's much less mindless flipping through channels, and don't miss all of those other channels. Minimum monthly savings: $45

2. Stop paying for both a cell phone and a home phone. If you're really in a financial bind, get rid of the cell phones. Yes, your kids will groan, but desperate times call for desperate measures. A cell phone is more often a glorified toy than it is a safety tool. If your child complains that everyone else has a cell phone, suggest that your child should have no problem borrowing one to call home if there's an emergency. If you must keep the cell phones, then consider whether you need a home phone AND a cell phone. Minimum monthly savings: $50

3. Drive a car that you can afford. If you're in financial trouble, then get rid of your current vehicle and get something cheaper that fits your budget. If pride is an issue, get over it. Rehearse some lines that highlight the positive, such as, "I want to focus on something that's worth putting money into. I'd rather spend money on my house than on a car." (if appropriate), "At least it's paid for." Minimum savings: $100

4. Stop eating out for awhile. Brown-bag it for a month, and if you do eat out, order water (free) instead of soda. For your kids, let a brown-bag lunch be the norm and a school-bought lunch a special treat. If you have a pizza night with the family, pick it up to save the delivery charge. Total savings here can be huge, but minimum monthly savings: $15

5. Serve cheaper meals at home for one month. You can eat on a low budget and still have a full belly, trust me. If you have an off-brand grocery store nearby, try it. If not, you can find good, cheap products in your regular grocery store. Try Trader Joe's for a variety of healthy, reasonable groceries. Here are some suggestions:
   Breakfast - try the store brands of Rice Krispies, Corn Flakes, and Frosted Mini Wheat (they're usually pretty good). Oatmeal. Eggs. Skip the bacon and sausage for awhile.
   Lunch - good old peanut butter and jelly (I'm partial to Skippy, and it's still a good value), grilled cheese and vegetable soup, tuna, salad, hot dogs, raman noodle soup (very salty but kids love it, and it's about 20 cents). Buy a cheaper brand of bread for awhile.
   Dinner - pasta (try different shapes for variety), meatballs, beef stew in a crockpot (you can use a cheaper cut of meat and it's still delicious), omelets, chili and rice, pasta, pasta, pasta!
   Minimum monthly savings: $40

6. Stop wasting money on beverages. Make coffee at home. Buy a reusable water bottle for every family member and never buy bottled water again. Make homemade iced tea instead of buying soda. Minimum monthly savings: $20

7. Stop paying for manicures/pedicures/brow waxing. It's hard to be sympathetic towards people who have financial trouble but still get manicures twice a month. It's nice to be pampered, but if you're on a tight budget, do your own nails and pluck your brows for awhile. Paying to have it done is a luxury, not a necessity. Minimum monthly savings: $20

8. Trim your hair maintenance budget. Most people are very particular about their hair, but there are ways to save here. See if your hairdresser will charge less if you don't get your hair dried and styled. Try coloring your hair at home. Wait an extra two weeks between haircuts. Try a cheaper hair salon by calling and asking which hairdressers are best at working with your type of hair. Buy cheaper shampoo, conditioner, and styling products. Minimum monthly savings: $20

9. Try cheap entertainment. Low budget does not equal low fun. Have kids? Their friends' parents will probably welcome a few weekends without the mall, movies or skating. Reserve a table in your house for a jigsaw puzzle. You'd be surprised at how people of all ages enjoy working on a puzzle if it's right there. Have a game night. Rent movies or video games. Minimum monthly savings: $20

10. Consider thrift shops for some clothing purchases. I got hooked on thrift shops when I got a beautiful, name brand cashmere sweater for $5. Challenge yourself to find a great item for a bargain price. Can't find it? Ask! Other thrift/discount store shoppers know where the good shops are. Minimum monthly savings: $20

Tips & Warnings

• Think of these tips as temporary measures that you may or may not do long term.

• Check out Dave Ramsey's website (link below) for terrific, no-nonsense advice on debt.

Resources

• www.daveramsey.com