At first instance, it may seem difficult to limit your spending and stick to your budget, however, there are a few practical changes that you can make on a daily basis that will cut your spending dramatically. Herewith, are the following tips.
1.0 If you are a credit card user, you need to alter your credit card behavior. Start to pay in cash whenever possible. This will help you avoid making a purchase unless you actually have the money available.
If you decide to make a credit card purchase, be prepared to pay the balance off monthly. This will save a lot of money through avoiding interest charges. If you already have a credit card balance, then transfer to a card with a low interest rate. Also, find a card that does not charge an annual fee.
2.0 Another tip is to pack your lunch everyday instead of eating at restaurants. Bringing your own lunch box save you several dollars a day, which will add up as your savings over time.
3.0 Use your cell phone during off peak hours. Some people will spend a couple hundred dollars a month on phone charges. Avoid this by making most calls during off peak times. Check with your service and plan to find out when you have cheaper or unlimited calls.
4.0 Stop throwing away the Sunday newspaper before skimming through the advertisements. Clip some of those coupons and check out the sales. This may seem tedious, but the savings are often worth it. Many stores will double or triple the amount of the coupon. This technique can save you up to 20 or 30 dollars each time you head to the food store.
5.0 You can save some money if you refinance your mortgage loan. Mortgage rates have been extremely low over the past year. This has been a great opportunity to reduce the monthly house payment significantly. If you are planning to have your house paid off prior to retirement, then you may want to factor this in before refinancing.
6.0 Finally, bundle up your insurance. Many insurance companies will offer their customers lower rates if they purchase multiple policies. For instance, some people use the same agent for multiple cars, and others combine their cars and house. Always keep in mind that a dollar here and there really begins to add up. Avoid the temptation of thinking that changing your spending habits wouldn’t save that much money.