10 Easy Ways to Cut Costs
1. Learn to do your own laundry. My husband and I used to routinely plop down $40 per week for this luxury. Now I gently wash the clothes and iron them myself while watching my favorite television shows. Now we save $160 a month.
2. Cancel your gym membership. I dusted off our old treadmill, elliptical and exercise bike, and now have a home gym that costs me nothing. I now save $420 a year.
3. Smart grocery shopping is a must for a tight budget. Buy in large quantities when they are on sale. Store bulk items in the freezer, deep freezer, or air-tight containers. A well-stocked pantry will allow you to buy ingredients only when they are at sale prices. If you notice a certain item only goes on sale once a month, then only buy that item every four weeks. The initial cost will be slightly higher (because you are buying in bulk) but the subsequent weekly savings will be dramatic. Most food companies have websites where you can simply print off coupons to use. Use these on double coupon day at your store for even better savings. My husband and I have cut our food costs by half, saving us $200 per month.
4. Scrutinize your phone bill. You may discover many added features you are paying for, but rarely use. Do you use three-way calling? Do you need long-distance service on your land-line? Most cell phone companies allow you to make long distance calls for no extra charge. Buying a $20 answering machine can eliminate the need for a monthly voice mail fee. If the only added feature you need is caller ID, ask your phone company for the service ala carte. Shop around for Internet service. Your phone company may not have the best deal, even with their bundle packages. We now save $420 per year on our phone service.
5. Reject Retail. You can cut your yearly clothing costs by two-thirds if you shop at consignment shops or thrift stores. On-line classified ads, such as www.craigslist.com can offer local deals on clothes. A good tailor in your area can alter any piece of clothing at a reasonable price.
6. Cut down on entertainment costs. Movie nights, eating out, and concerts can eat up your spare change quickly. Movies can be rented locally or by using an on-line service such as www.netflicks.com or www.blockbuster.com for a fraction of theater costs. Cooking dinner at home saves substantially over eating out. Take advantage of museums, local plays or music groups that provide entertainment at the fraction of a full-priced concert.
7. Vacation smart. Instead of dropping $1,500 for a week at Disney World, look for frugal options such as exploring local state parks. A camp site costs around $12 per night in my area. You can purchase camping equipment at a yard sale or thrift store for $20, including tent, lantern, and sleeping bags. Some parks rent equipment for a small fee.
8. Cut the cost of hair care. Many beauty schools offer the same services as a salon, but at a fraction of the costs. A haircut at our local beauty school costs $4 where as a local salon charges $25.
9. Save on car insurance. Opt for the highest deductible on your policy. The point of car insurance is not to have zero costs in the case of an accident. It is to help cover extremely high costs of repairs. My advice is to opt out of rental car coverage. Most families these days have two cars and could make arrangements to share the car while repairs are being made. If your car is over five years old, and paid off, you might consider NOT purchasing comprehensive or collision coverage. If you are a safe driver, your money might serve you better collecting interest in a saving account. Some companies offer discounts to good students, for taking defensive driving courses, for anti-theft devises, and for non-smokers.
10. Save on home owner's insurance by insuring the cost of your home only, not the land. It is highly unlikely your land is going to burn down, be swept away in a flood, or be blown away in a tornado. As with car insurance, it is true that opting for the largest deductible will save you money.