Trimming Expenses - Part I

Many of us could benefit by taking a good look at our monthly expenses. Whether saving for a special purpose or just needing to make ends meet, a review of expenses will often reveal extra dollars. Consider these areas:

Communication services. How many telephones do you have? Do you really need both a cell phone and a land line? Do you need a separate phone line for the children? How many extra services do you pay for? Do you need call notes, call waiting, caller ID, call blocker, call tracer, call return? Do you have the right cell phone plan? There are several. What about television? Can you live without cable TV or a dish? What about those premium channels? The average American spends $90 per month on cable television for dozens of channels, but watches only a few.

Eating out. Keep track for one month of how much money you spend purchasing food and drinks away from home. You will be amazed! Every time you eat or drink away from home, you are paying not only for the food and drink, but also for someone else’s utilities, rent, insurance, labor costs, profit, and sales tax on all of the above...plus tip. Curtail your eating out and see what a difference it makes to your bottom line.

Insurance Costs. A familiar commercial tells us that 15 minutes could save us 15% on car insurance. Well, it will take more than 15 minutes, but having all your insurance policies reviewed will be time well spent. Check out the premiums with varying deductibles on your car, home and business policies. Consider a higher deductible with a lower premium. At what loss level will you actually submit a claim? You often can save premium dollars by having all your insurance with the same company.

More food for thought next month, including: “How much does Fido really cost?