Tips on Using Small Change to Save Big
Budgeting the Nickels and Dimes that Burn Holes in the Pocketbook
Aug 13, 2009
Now that the free spending ways of yesterday have given way to a new reality, saving money becomes a real challenge for the family hit hard from layoffs and the loss of investments. Nothing is certain in today's economic climate and to protect themselves many families simply cut back wherever they can. That usually means delaying the purchase of new furniture, car or appliances. And while they get frugal with what they spend at the supermarket, they often neglect to address the everyday expenses that don't seem to be important enough to get much attention.
Whether hit by losses or still employed, most families should take a close look at that extra small change they let slip through their fingers.
Spending Cash
Buying that morning cup of coffee to bring to work has become an American tradition, but that dollar or two adds up over the course of a year into a few hundred dollars, money that could gather interest in a savings account or better used to meet unexpected emergencies.
Eating Out
Many people head for the fast food joint for a quick breakfast. While breakfasts don't cost much, they are hardly healthy and add up to a significant drain on finances when done every day. The same applies to those quick snacks purchased at company vending machines and what's bought when the mobile canteen rolls around.
Newspapers and Magazines
Few people have time to read the magazines they subscribe to. Unless reading the Wall Street Journal is a necessary read for business purposes, most families can do without most of their subscriptions. A magazine or paper can be purchased at the newsstand if there is something worthwhile to read.
Phone Services
This is one of the major drains on the pocketbook. Most families simply don't need all the calling features they're subscribed to. Unless call waiting, call forwarding and voice mail are absolutely necessary, basic phone service takes away a considerable amount of cash. A number of families don't need long distance services as they make few calls across the country or overseas. A phone card is a better alternative. Many people who have both a land line and a cell phone can often get by with just one.
Television Services
Unless the members of a family have plenty of time on their hands, they don't need to watch a zillion channels on cable or have satellite service. Some households feel deprived unless they have a television in every room and must have a hook up to those sets. With today's family on the run, viewing time doesn't justify the additional expense of those services.
Clubs and Memberships
Gym memberships are useful if the subscriber actually uses them. Otherwise there's little need to subscribe. If exercise is an issue, a brisk walk outdoors is a healthier alternative and far cheaper on the budget.
It's estimated that the average person reads about two books every year. Given this, there's little need for a book club membership. The library offers many books that are free to take home and read.
Similar to book clubs are the video clubs. Buying videos don't make much sense of they are watched a few time, then discarded or left to sit on the bookshelf. A better alternative is just go to Blockbuster to rent a movie.
Home Services
Maid services are costly. Having the neighbor's kid cut the lawn or babysit may be useful in some cases, but many people could get in some exercise pushing their own mowers. If a child is old enough, he or she can be relied on to care for their younger siblings.
Among some of the cash wasters are dry cleaning services and haircuts. Not every spot of dirt on a suit or skirt requires a trip to the dry cleaner. Getting a haircut or seeing a hairdresser may lead to some interesting conversation, but it's done far too often to make spending the cash necessary.
Those oil and filter changes can drain the pocketbook especially when there is more than one car to service. And most families do have more than one car in their garage. Many people can take the time to make simple repairs and maintenance to their homes and cars without hiring professional services.
When it comes down to it, those little expenses do add up to a great deal of cash. Major expenses are easy to cut back. But to really save requires taking a careful analysis of which services are necessary and which should be eliminated. Every family can do much better financially simply by addressing those unnecessary costs. And in today's tough climate it's necessary.
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