How to Drastically Reduce Spending

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Over 10% of the population is out of work and the rest are trying to find ways to cut back. Most try to cut back in small ways only to become disillusioned when they do not see any difference in their monthly budget. The problem is not that they are not saving money; it is that they are not saving enough money to make a real difference. People need to find many ways to save money in order to drastically reduce spending. By applying multiple money saving tricks, like the ones listed below, you will see a dramatic difference in your budget.

ENTERTAINMENT

Begin by cutting your entertainment budget to nothing. So many people spend hundreds of dollars a month to entertain themselves when this is completely unnecessary. There are hundreds of free ways to entertain yourself during your free time. Here are a few ideas.

– Go to your local library to rent books and movies. You may be surprised what a great selection they have.

– If you want to see a new DVD release, look for a Red Box code to get a free night rental.

– Pull out old board games or a deck of cards. These can be so much fun, and they are more than likely just collecting dust.

– Look for free events around your town. Concerts, free museum days or a free day at the zoo are just some of the things that could be available in your area.

– Go to a local park for a picnic or have a cook out with friends.

Entertainment doesn’t have to cost anything. Cut this cost out completely and you will be amazed at what it does to your budget.

FOOD

Learn how to cut your food bill in half. There are so many resources available online and in books to help you do this. Put these tips into practice.

– Plan every meal out ahead of time to save time and make sure you have all the ingredients you need. This helps eliminate eating out.

– Build an arsenal of cheap meals that you can make quickly. Set a goal to keep every meal around $1-$2 a person.

– Learn how to use coupons wisely. There are people who spend less than $1000 a year on groceries because they know how to use coupons. You could learn how to be one of them.

UTILITIES

Another huge expense for people is their utilities. Electric, water, telephone, and internet are all places you want to maximize your savings. Here are a few ways to save in these areas.

– Turn off lights when you are not in the room.

– Turn off your AC or heat completely and find natural ways to keep the temperature bearable.

– Unplug everything that you are not using.

– Turn down the temperature on your water heater

– Take short showers instead of baths to save on water.

– Completely cancel your landline if you have a cell phone. You likely do not really need both.

– Cancel your internet connection and use your local library to check your email.

CLOTHING

If you don’t have a real need to buy a piece of clothing, don’t. Find ways to use what you already have instead of buying something new. If you do end up needing to buy clothes, use these tips to save some money.

– Buy used if you can. You can easily save 90% off what you would pay for the same item new.

– Shop the 75% -90% off racks at stores like Kohl’s and then use coupons to reduce the cost even further.

– If it is around your birthday, wait on the purchase and ask for it as a gift. Your loved one will likely be happy to know that it is what you really need.

DEBT

For most, debt is eating away at our budget every month, with interest rates in the double digits. Start working to pay down your debt so you are not loosing money every month to interest. Here are some ideas to get you started.

– Start paying extra on your smallest debt first and get it paid off quickly. Then use the minimum payment you were paying toward your first debt and put it toward the next. Continue this until all your debts are paid.

– Consolidate your debts into a lower monthly interest rate to free up extra money to pay toward your principle balance.

– Use any bonuses or windfalls that might come your way to pay off your debt.

CAR

Next to your rent or mortgage, your car is probably your biggest expense. You can significantly reduce how much you spend on this portion of your budget. Here are a few of the ways you can.

– Lower your car insurance by shopping around, raising your deductible, and lowering how much you are covered for.

– Learn how to do basic maintenance on your vehicle so save the expense on a mechanic.

– Sell any cars that have a payment and replace it with something you can pay cash for. A beater with no payment is almost always better than a nice car with a payment.

There you have it. Use these money saving tips to drastically reduce your spending every month. If you apply these tips to your life you can free up a great deal of money in your budget. Yes it takes some effort, but it is worth it!

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