If you are having trouble stretching your paycheck each month or simply want to save for an expensive new luxury item, the key to your solution is to reevaluate your budget. For most items in your budget, there is the ability to flux and shift.
One easy solution is to first separate all budget items that have the option for the most adjustment. You may be surprised by some of these, but in my experience the following budget items have some room for a change:
*Automotive Gas
*Automotive Insurance
*Charitable Giving
*Clothing
*Food
*Gifts
*Grooming
*Misc
*Entertainment
*Vacations
Then there are even larger, more firm expenses like child care and rent/mortgage that can be shifted, but will require more work.
Basically, my point is there are very few items on your budget that absolutely can’t be changed. Motivation will be the main the force behind stretching your money. Use this internal push to get you started.
The first step is to identify which items will be the easiest to change. Think about each expense and ask yourself, it the whole amount necessary? If so, then ask how you might be able to reduce it. A simplistic example could be your daily newspaper. Many people pay to have a newspaper delivered to their home each day, but do they actually read it? If receiving the paper is important to you, then to reduce the cost you could just sign up for the Sunday only edition. This simple scenario may not make a huge difference in your budget, but if you continue this line of thinking for each expense your family has, you may actually make a dramatic impact.
For some of the larger and more stable expenses, like insurance, mortgages/rent and childcare, the process is a bit more complicated. It will usually take some phone calls and shopping around, but if you put some effort into it… there are opportunities to save here too.
Related Articles:
*Will that Big Ticket Item Really Save You Money?
*Save Money on Your Health Insurance