When it comes to spending, what are the basics? What things do you need to purchase each month? These are the things that you should concentrate your saving efforts for right away.
Why am I advocating concentrating on knocking down the costs of the basics instead of knocking down the costs of the largest expenses or even of the luxury expenses? Simply because when it comes down to it, all other things can be eliminated in a crisis, while the basics have to remain.
Everyone is going to have a different set of basic needs, with some obvious categories that will be included for all. Food is a good example. Everyone needs food, and unless you are a minor living at home, there is a good chance that you will have to pay for it. So start there. Figure out how you can cut down on food expenses, such as buy cooking from scratch, watching the sales, using coupons and getting free food.
Next is shelter. How much house do you really need? Is there a way to cut down on monthly the cost of your home by downsizing, refinancing, or renting unused space? Even if you aren’t in a position to change your rent or mortgage, you can find ways to reduce the cost of running your home, by spending less on utilities, insurance, maintenance and even cleaning supplies.
Now let us look at clothing. No one wants to be naked, right? Save on this basic need by really evaluating what you need. Do you really need several pairs of shoes each season? Can you make your existing clothing last and not purchase any new clothing for a year, six months, a month, a week? Can you purchase your clothing on consignment or at a thrift store? One of my most complimented name-brand summer outfits was purchased for a whopping 50 cents.
Start with those three and then branch out to other expenses in order of need, such as transportation, communication, entertainment, etc.
You can read more blog posts by Mary Ann Romans here!
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