We all spend money for things we really don't need. Track your spending for a month to find those spending "leaks." Once you know where your money goes, look first at all non-essential expenses. Which can be cut or totally eliminated? Are you getting any extra charges (example: late fees on credit cards)? Those fees can be totally eliminated by becoming better organized. Then take a look at essential living expenses. Can any of them be cut without damage to health or safety? Think of expense cuts as temporary so it's easier to do.
Some ways to cut expenses might include:
- Eat out less often.
- Do it yourself instead of paying someone else to do it.
- Use the public library instead of renting videos, going to movies or buying books, magazines, or newspapers.
- Use public parks and other free community facilities and events for recreation.
- Swap things and services with friends, relatives and neighbors.
- Go on a spending "diet." Find ways to cut out the expense "fat."
- Cut out personal "vices." Whether it's gourmet chocolate or coffee, a weekly gambling junket, eating out more than necessary, buying yet another pair of shoes or something for the house or for your "collections," put this kind of spending on hold.
Caution: Essential expenses for food, utilities and health care should not be cut. Don't cut out all "fun" entirely. Also, remember the law requires a certain amount of vehicle insurance.
For more ideas on cutting expenses see:
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