Cutting Costs (Part One)

With gas prices currently breaking records, everything from consumer goods to food is following suit. At this point, any type of money that can be saved has the potential to have huge benefits in the long run, especially with the current trend that exists. With this in mind, one of our members has written an article with some tips that anyone can use to reduce their overall costs.

With prices on the rise, it is important to evaluate where your money is going and areas where you can cut back on spending. There are many things that you can do to stretch your dollar that will have a small impact on your lifestyle.

Entertainment

1. Buy an entertainment book. They are about $15 to $20 initially, however they contain coupons to place that you would probably go anyway and will pay for itself quickly. This website has reduced 2008 books to $9.99 (Atlanta Entertainment Book)

2. Get books for free from the library. You can also get DVDs there.

3. Save money at the movies by going to the matinee or waiting a bit and going to a dollar theatre.

4. AtlanTIX has same day half price tickets to theatre, dance, music and cultural attractions.

5. The High offers free admission to Fulton County residents the first Saturday morning of every month.

6. When you are eating out, just drink water with your meal. It is free and it is healthier.

Household/Car/Utilities

1. Replace incandesacent bulbs with CFLs (fluorescent lights). The initial cost is more, however they last for about ten years and save about 75% in energy.

2. Walk if possible.

3. Turn off lights and appliances when you are not in the home. Also pay attention to phantom load, which is the electricity consumed by appliances when they are off but plugged in. I have heard that having the TV plugged in but off is almost equivalent to leaving it on all day (can’t confirm how true that is). To avoid this you should use a smart strip.

4. Buy energy efficient appliances.

5. Drive your car for as long as possible, especially if it is paid off.

6. Use Craigslist or go to garage sales.

7. Re-evaluate your cell phone and cable packages. Check to much sure you are actually using the amount of minutes you are paying/watching the extra channels you are paying for, etc.

Shopping/Food

1. Buy the Sunday paper and cut out the coupons. You can also get coupons on-line like www.couponmom.com .

2. Make list prior to going to the store and stick to it. It is easy to start buying random items at the grocery store, so go on a full stomach and only buy what is on the list.

3. Bring your lunch to work every day and make dinner at home.

4. Pay attention to how much things cost, so you know when you are getting a good deal. Just because something is on sale does not necessarily mean it is a deal.

5. Use the unit price on the price tag to compare between different brands.

6. If you know use a large quantity of a particular item and it will not expire, then buy the larger bottle or load up when you find a really good deal.

7. Buy the store brand if you can. Most of the time you can’t even tell the difference, especially with medicine.

8. Don’t waste money on buying fancy toilet paper and paper towels. It is literally money going down the drain.

9. Rather than buying bottled water, just buy a filter and re-fill a water bottle.

10. Most items at the mall almost always go on sale, so before you buy it think if you really need it right at that moment. If not just go back in a couple of weeks and it will more than likely eventually go down in price.

11. Before you buy anything, take a minute to think if you really need it.

While these small items can add up to larger savings, the place where big savings can come are your car and home. In general, don’t get caught up in trying to keeping up with the joneses and having the latest and greatest of everything. Most people that have that stuff can’t afford it to begin with, so you take what others are doing with a grain of salt.

If you read books, such as The Millionaire Next Door, it has been shown that most self made millionaires don’t buy the most expensive car and live in mansions. They just live modestly and beneath their means and make practical decisions with their money. Although you may be able to afford a larger home, it is important to consider that with a larger home comes the need for more furniture, utility bills, and upkeep all which equal more money.

The same goes with a car. It may be trendy to drive certain cars, but it may not be practical to drive a car that gets 15 mpg when gas is 4 dollars a gallon and you commute to work every day.

As usual, if you have any comments, leave them below. Stay disciplined!