Budgeting Week #3

Now the fun begins!!

Wow!! What an eye opener that last week was. It is kind of shocking once you put all this info together and take a look at the whole picture. I don’t know about ya’ll but I found that we are not as frugal as I once thought in certain areas.

Now that we know what we have been spending, let’s work on ways to lower these costs. This will of course vary widely depending on your individual household needs and the area you live but surely we can all find some area to cut back in.

Last week we divided our expenses into fixed and variable. So we are going to explore each of these expenses a little deeper. Let’s look at Fixed this week and Variable next week.

Fixed expenses – Here are some suggestions on cutting back in some of the areas that fall under fixed expenses.

Utilities – Search your providers website to see if they offer any sort of discounts and to get money saving tips.

Electricity – Some companies offer discounts on using electricity during off peak hours. Set the temperature on your thermostat a little higher while you are at work and the house is empty.

Water – Try putting a gallon jug full of water in the tank. (You will save 1 gallon of water with every flush)

Gas – (those with a gas water heater) Wash clothes using cold water and turn the temperature up so it is not overheating your water, you could also set it to away when you will be gone from the house for a period of time (like vacation).

Phone – Lots of people have multiple phones and are paying a premium for each of them. Take a good look at your bill and see if you can cut back or even eliminate one of them all together. Another good way to go about cutting back is to eliminate your long distance cost on your home phone and just use your cell for long distance calls.

Television – Do you actually watch ALL the channels you are paying for? See if there is a cheaper plan to fit your needs that includes the channels you do watch.

Insurance – Check into raising your deductibles, by doing this you will pay a lower monthly premium.

Mortgage – Know your interest rate. Interest rates are currently down so if you have a high interest rate it may be beneficial for you to refinance at a lower percentage rate. Of course by refinancing you may have to pay closing costs so weigh your options here.

Those are just a few examples of ways to lower your fixed expenses. If you have questions on other specific expenses feel free to ask about ways to lower them here or e-mail me at MindySBZHost@gmail.com

This week’s homework will be to try to lower your fixed expenses as much as possible. Share your success stories with us here, as well as any other ways you have gone about lowering your bills.