How to Save $500 per Month

The current economy is forcing all of us to take a more critical look at our expenses and searching for ways to save money. Do you really know your expenses each month? The average household can save $500 per month by making some simple but significant changes in their spending.

Difficulty: Moderate

Instructions

1. Phone:
   Switch from a typical land line company (Verizon) to a Voice Over IP (Vonage).
   From $80 to $30 = $50 monthly savings

2. Cable:
   Decrease Basic Package with DVR to Limited Package(local channels only).
   From $65 to $15 = $50 monthly savings

3. Groceries/Toiletries:
   Plan your meals and purchases around sale items and coupon items with the necessary exceptions.
   On an average $100 weekly bill = $25 savings = $100 monthly savings

4. Electric:
   Unplug and/or turnoff everything when not in use = $10 monthly savings
   Turn water heater down from 125 to 100 degrees = $20 monthly savings
   Line-dry clothes when applicable = $10 monthly savings

5. Restaurant Meals/Drinks:
   Brown bag your lunch = $5 per day = $100 monthly savings
   Eliminate one dinner out for 2 = $50 monthly savings
   Drink Coffee/Tea from home = $2 per day = $60 monthly savings

6. Water:
   Fill your own reusable water bottle = $10 monthly savings
   Turn water off when not in use = $10 monthly savings

7. Gas:
   Combine your errands to decrease mileage = $5 per week = $20 monthly savings

8. Car/Home Insurance:
   Evaluate your policy and request additional discounts = $20 monthly savings

9. Miscellaneous (savings in addition to $500 since not applicable to all):
   Wash your own car = $15 monthly savings
   Groom your own dog = $40 monthly savings
   Use online billing = $5 monthly savings (+ avoid late fees)
   A/C set to a constant 77 degrees = $50 monthly savings
   Heat set to a constant for 8 hours = $40 monthly savings

10. Steps 1 through 8 result in over $500 monthly savings! Step 9 is not included since they may not apply to everyone.
    
    Write every expense down for a week- where else can you save?

11. Now decide what you will do with an extra $500 per month! Pay off a credit card, contribute to an IRA, save for a 6 month emergency fund, save for a new car, save for a new house, save for a vacation...

Tips & Warnings

• Monthly savings calculations are conservative averages. Depending on your personal expenses, your savings may be considerably more.

Resources

• How To Save Money During a Recession
• How to Realize your Spending Habits
• How to Save Money on Everyday Items
• How to Decrease Monthly Household Expenses
• My Trump Network Homepage

[bpreardon]

on 11/7/2009 Some great money saving hints

[cygnetbrown]

on 10/27/2009 We can all find places to save. Even tight wads like me. Thanks for the great tips.

[goodselfme]

on 9/28/2009 Great information to save $500 a month. 5*

[rachelsuecmpbl]

on 8/30/2009 This is such an excellent article. I have bookmarked it for future reference! Thank you ;-)

[datheos]

on 8/27/2009 An article that makes sense.5*