Hi - so far this year 2012 - i have put at least five thousand dollars into my bank account by cutting down, cutting out, revamping, revising and prepaying as much as possible.
here is how i did it - and you can do it too -
GET OUT YOUR CALENDAR - SCRUTINIZE EVERY SINGLE DAY OF THE MONTH for what comes due when. take a black marker for all of the FIXED EXPENSES YOU HAVE. for instance, hydro bill - altho you may not know the exact amount you can look over your hydro bills for the previous 12 month period. from that you can figure out what your monthly amount tends to be within a few dollars. divide your realty taxes by 12 and note the amount.
i realize winter can be tough - and for you in the HOT climates - air/con is an issue.
put that figure (which is going to be reduced and i will tell you how) in black marker on the billing date.
do that for all your fixed expenses -
next comes the variable expenses that are necessities - so your gas bills for the car or transit costs if you take other mode to work, food and groceries, health expenses - (although necessary they are variable and you can work out a contingency) etc. think hard and long about what you spend your money on. internet /cable / etc.
now put in everything else IN RED MARKER- magazines subscriptions? hair/makeup salon stuff? (you may only do these things every two or three months - but they need to be in there cause you are spending money on them. how about entertaining- do you have cable TV extras - eat out quite a bit - even a coffee before work??
this may take you quite a while - take your time - you may not have it all in there for a week or so. but jot down everything. even when the kid comes to the door for donations out of your pocket change.
now - let's say you are at that point. here is what i did. THE VERY FIRST THING was to call the phone company - my monthly bills was too high - ditto for the cable TV and my cell phone. ALL OF THEM REDUCED my monthly billings - the only catch was i had to stay with them for 24 months - WELL DAAA I WAS WITH THEM ANYWAY and there is not a whole lot to change to = they are basically all the same. (now when that period of time is up i am seriously thinking of just keeping my cell phone - giving up the land line - as it still costs me about $1200.00 for the year!!!)
the NEXT STOP - INSURANCE - house insurance in particular - i UPPED MY DEDUCTIBLE - you are only GIVING YOUR MONEY AWAY REALLY -- no one should have under $5,000. deductible. it is going to cost you if there is a catastrophe anyway. the insurance companies always have a cover NOT TO PAY - 'ACT OF GOD', OLDER NEIGHBORHOOD, TOO FAR FROM HYDRANT -- blah blah blah. with the money i have paid over the years and NEVER COLLECTED i could have built A BRAND NEW STATE OF THE ART HOUSE. so i upped that deductible and took a lesser amount. that reduced my yearly premium by $200.00.
CAR INSURANCE is a little trickier - but you can enquire - some agencies will insure for the other driver should an accident occur- but you have to be prepared to not be covered - that is not a good trade off - but asking never hurts.
now the next issues will take you some time - figure out how you can save on utilities by changing your routines or lifestyle. for instance, do you really need to leave your outside lights on? if you do . put them on a timer so they are not burning unnecessarily.
we had a heated floor in the foyer and during the winter it was on - i turned it off and that saved me almost $300.00 over the three months feb thru to april. we did enjoy having it on thru the dead of winter - but i also lowered it by 3 degrees - that saved as well.
if you can share things - like magazine subscriptions - also COSTCO card fee- split with someone so you can all shop there, recycle the newspaper - and by the way i get it only one day a week now - not seven. i was using it to line the garbage bin as they piled up and were never read. you already have it on the internet anyway.
clothing - be brutal - i have found jackets and dresses as we all have - still with the tags. give away, or revamp - but don't buy any more.
anyway - i hope you all will do this - you will find $$$$ to perhaps give yourself a vacation, or pay down your mortgage faster - that also was a huge one for me - i saved close to $8000.00 in interest charges.
grocery shopping is now ONCE A MONTH - i only pick up fresh fruits and veggies weekly and shop only what is on special. that has saved me HUNDREDS of dollars - stick to a list, take inventory in freezer/fridge -
BRING your own lunch and make your own coffee - that's a simple one but saves you a ton.
it all works and you will be happy you took the time.BB
Edited by: BROADBRUSH at: 8/23/2012 (15:42)
rage guilt and revenge - the late great nelson mendela said - IT IS LIKING TAKING POISON AND EXPECTING YOUR ENEMY TO SUFFER!!!
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