Ways to Make Money Go Further

Saving money and investing for retirement is an important part of financial responsibly but it can be difficult to save money when faced with high monthly expenses and limitless opportunities to spend. If you are having difficulty paying monthly expenses or you simply want to commit extra money to savings, it is essential to find ways to stretch your dollars further.

Reduce Living Expenses

Creating a personal budget -- a list of income and expenses -- is an important first step to making your money go further. Once you create a budget, study your monthly expense and look for things that you could cut or reduce to save money. Switching cell phone service, dropping data plans and altering cable or Internet service can result in substantial savings. You can reduce your use of electricity and gas simply by turning down the thermostat in cold months and avoiding the use of air conditioning in warm months.

Cut Unnecessary Spending

For many consumers, discretionary purchases beyond normal monthly expenses are a large source of potential savings. Common purchase such as coffee, soft drinks, alcohol, going out to eat, clothing and entertainment are all potential sources of savings. You don't necessarily have to cut discretionary spending completely; simply cutting back on spending on these types of purchases can result in significant savings.

Reduce Insurance Costs

Health insurance, auto insurance and homeowner's or renter's insurance are common expenses that can be costly. Reducing insurance costs can help you stretch your money further each month. Choosing to take on higher insurance deductibles can reduce your insurance rates, as can switching to a different insurance carrier or carrying several different policies with the same insurance company. Insurance companies consider older drivers less risky, so switching auto insurance or requesting lower rates periodically, especially if you have never gotten into an accident or received a traffic ticket, can save money.

Reduce Debt

The interest you owe on debts such as credit cards, auto loans and personal loans saps your income each month and leaves you with less leftover to spend on daily necessities. Reducing high interest debt by committing your extra money toward paying it off each month is one of the best ways to create breathing room in your budget over time.

References

• U.S. Deptartment of Energy: Energy Savers Booklet
• CNN: Making a Budget -- Cutting Costs