How to Cut your Expenses

1. Determine where you spend your money.
   
    If you do not know where your money is going, you are most likely spending too much. You can get a solid idea in as little as one month and as you continue, you will see patterns develop that you can address. Write down everything you buy down to the last dollar. Do not stop at the obvious expenses like rent, utilities, gasoline and food. Include the ancillary items like sodas and snacks as well as gum or tobacco. Use a Row-by-Column ledger, spreadsheet, or other software to keep track every month.
   
   
   
2. Cut Down on Entertainment:
   
    It is astounding how many people complain about money then describe the latest release of a movie with the cost of theater popcorn. In addition, professional sports event, a music concert, or tickets to a play can run hundreds of dollars for a couple on a date. Seriously, can you tell the difference (blindfolded) between a $30 bottle of wine and a $9 bottle of wine? When you do dine out, think about the prices on the menu first. Consider a meal share if the restaurant offers that option. Never, ever order delivery of expensive food; you are wastefully enjoying only the food and not the atmosphere when you could cook for yourself far more cheaply. Look for vacation bargains – consider taking the kids camping instead of one of the expensive amusement parks.
   
3.  Focus on Food: 
   
   The only real difference between a $1.99 can of corn and a $0.63 can of corn is $1.36--and the satisfaction of knowing you're not overpaying largely to feed a cycle of ads to make yourself and others fret about not paying more. (Sure there are exceptions; people on low-sodium restricted diets will often have to pay more). The grocery store is a place you can save big.
   
4. Consider pre-owned itemsThis is a great way to save significant amounts of money while recycling! If you absolutely must buy something, there are options other than a mall anchor store or a big-box superstore. There are large thrift stores (e.g. Goodwill) and smaller church-run stores that have some incredible bargains on everything from home knickknacks to appliances to clothing. It is beyond imaginable how fast a 4-year old will outgrow shoes (when that happens, re-donate them so somebody else can benefit). Look for garage sales – your neighbors will not think less of you because you bought the winter jacket they are trying to sell. Have your own garage sale and they might want what you no longer need.
   
   
   

Tips:

• Stop using paper napkins and paper towels. Cloth towels are absorbent and can be used repeatedly. Cloth napkins can be made from an old tablecloth. They also clean much better than paper.
• Use the 24-hour rule. Wait 24 hours before making the purchase for non-critical items.
• Consider investing in reusable items. Rechargeable batteries are a good option if your battery consumption is high – the question you should ask yourself is: why is your battery consumption high and how can you reduce it?
• If you subscribe to non-essential services, like satellite radio, prepare yourself mentally to cancel the service and then call their accounting department. Advise them that you are cancelling - they will transfer you to several people but each time tell them the truth - you want to cancel because you cannot afford the service. If you persist, they will offer you a discount - a substantial discount - to continue service because it is much cheaper for them to keep a customer than to get a new one. If they will not give you a discount - cancel the service and do without it while you save some money.
• Limit alcohol. Alcohol is an added expense you may be able to remove, or at least significantly reduce.
• Use handkerchiefs when you are not sick. They are not gross if regularly washed, hygienic, and handier than tissues.
• Recycle and reuse. The plastic bags for your groceries make good trash bags too. If you want to become efficient, consider ideas like saving your cooking grease (baby boomers already know that) or reheat that half-full pot of coffee. If you want two cups of hot tea tonight, one bag is enough.