Trimming Expenses-Pt. 2

Whether saving for a special purpose or just needing to make ends meet, a review of expenses might reveal savings opportunities. Consider these areas:

Storage. Eliminate long-term storage expenses. Unless you are in the process of moving, how important is it to pay $600 - $1000 per year to store items you are not using? Could they be sold and generate additional cash? Consider adopting a “one-year use it or lose it” approach to clothing, furniture, sports equipment and other non-essentials.

Children’s Clothing and Toys. Shop thrift stores and garage sales for children’s clothing and toys. Younger children out grow clothing so quickly that bargains on gently worn items abound.

Avoid Late Fees. The amount of late fees paid in the United States now exceeds $20 billion per year. This includes all forms of late or delayed payments and NSF fees on checks. Mark your calendar for when payments are due and balance your checkbook carefully. (Remember to account for ATM withdrawals, debit cards and ACH items.) The cost of paying an invoice late or having insufficient funds in your account almost always exceeds the value of that service.

Pets. Although pets play an important role in some families, the costs have to be considered. Americans spend more money on dog food than we do on missions. Owasso veterinarian Greg Strathe estimates that the annual cost to maintain one adult 25 pound dog is about $570. Before you buy that cute puppy, kitten, bunny or hamster consider the ongoing costs of that animal when it is full grown.

Premium Items. Have you complained about the high price of gasoline, but purchased bottled water? The water cost more. Goods like bottled water, Starbuck’s coffee and specialty ice cream command premium prices compared to their generic counterparts. Treat these types of items as luxuries, and purchase them only as a special treat.

Dee Sokolosky

President

First Bank of Owasso