Wednesday, February 25, 2015

Economize On A Tight Budget

Economize by controlling spending and reducing waste.


Whether your tight budget is due to job loss, economic downturn or other causes, you can find ways to economize by taking charge of your finances and exploring the many options available for frugal living. The dozens of little ways that you reduce your expenses and stretch your income add up to big savings. Once everyone in the household is on board, successful economizing requires a plan and a commitment to making the necessary changes.


Instructions


1. Create a record of your income and all of your expenditures for one month and use that information to make a budget. A budget provides the framework for spending. Sticking to the budget encourages you to make wise choices.


2. Identify items on your spending record that you can do without or reduce. Look for ways to economize on cost instead of eliminating valued items and activities. For instance, save on parking fees by carpooling to work. Purchase a coffeemaker for work instead of buying coffee by the cup.


3. Pay bills on time to avoid late fees and other charges. Request bill payment due dates that coincide better with the times you receive income.


4. Lower your utility bills by reducing your use of the services. Make an effort to use less electricity, water and gas. Combine laundry loads and program the heat or air conditioner to one automatic setting that reduces costs. Ask family members to cut back on lengthy showers. Call utility providers and ask for less expensive plans.


5. Research and plan before you shop. Comparison shop, look for sales and make lists. Check sales circulars, clip coupons and use the Internet to research prices. Plan your shopping trips and avoid going out to shop on multiple days. Make a list for your shopping trip, stick to the list and avoid impulse purchases. Use loyalty cards to receive reduced pricing.


6. Purchase discounted items by buying generic and store-brand items, buying in bulk and stocking up on food and household items that you use frequently to avoid purchasing these items too often.


7. Cook at home more often and avoid spending on carryout or purchasing prepared foods at the grocery story. Using your ingredients at home to make a meal is less expensive, especially if you have a large family.


8. Shop for clothing, furniture and home accessories at secondhand or consignment stores where prices are a fraction of the cost of new items.


9. Make a list of free and low-cost recreational activities in your community. Look for free outdoor concerts, museum events, sports events, game nights at churches or community centers and other events that are open to the public.


10. Save on the cost of gas for cars by performing regular maintenance and repairs on your car, combining trips, using public transportation, walking and carpooling. Telecommute a few days each week if your job allows it. Check traffic patterns and avoid congested areas that require gas-wasting stop-and-go driving. Avoid driving with a near empty gas tank.