Anyone can cut back on spending to save money for an emergency fund or savings account. It’s critical to work on reducing one’s debt by cutting spending on a regular basis. Once a person has enough savings to cover his living expenses for six months, he has stability to afford extra luxuries.
Save Money on Entertainment
People can cut back by canceling their cable television or premium subscriptions. Many households spend thousands of dollars every year to get hundreds of television channels and high speed internet. One can save money by cutting back in this area. Another way to cut back on entertainment is to stop going out to movies and stop buying books. Instead, get a Netflix account to watch unlimited movies at home for a month for what it costs to go to the movies one time and check out books from the public library.
Cut Food Costs
Most families can save money on groceries. By planning weekly meals and not eating out, families can save tons of money. Parents should make a grocery list and stick to it on a weekly basis. It’s also helpful to use the same main ingredient for a few meals throughout the week such as chicken, turkey or rice and beans. Try to pack lunches on a regular basis and use leftovers for the next day’s meals.
Pay Bills on Time and Cut Bank Fees
People can lose hundreds of dollars every month with banking fees and late fees from not paying their bills on time. If a person has to pay a thirty dollar late fee every month, because she doesn’t pay her cell phone bill on time, she could be saving $360 a year by paying it on time. Many banks charge fees for using other ATMs and monthly fees for overdraft protection. Everyone should check their monthly bank statements to see if fees are applied on a regular basis and figure out how to get rid of them. If needed, switch to a bank that won’t charge monthly fees. Many banks will negotiate if they think a person is going to take his business elsewhere.
Save Money on Transportation
Save money on transportation by selling a car, carpooling and using public transportation. If there is an option to take the bus or subway most of the time, utilize it. It’s usually much more inexpensive than repairing a car, paying car insurance and paying a monthly car payment. Families should consider selling one of their vehicles if possible, especially if they’re paying a car payment each month. It could save thousands of dollars each year. If a person isn’t able to sell his car, he should consider carpooling with a couple other people that he works with to save money on gas, especially if he lives close to other employees.
Ten ways to cut costs are to cancel premium television subscriptions, cancel high speed internet, stop going out to movies, check out books from a public library, plan weekly grocery lists, pack lunch on regular basis, pay bills on time, cut bank fees, carpool and use public transportation. Saving money in these areas can help people deal with financial emergencies and reduce debt.