If you’re in a career transition with limited financial reserves or you’re up to your neck in overspending gators, run to, not from, the problem. The longer you carry this problem around, the more difficult it becomes. Decide to implement all of the action items listed below to reduce your spending immediately. Better yet, make it a game to see how low you can keep your spending… You might find that less is more.
Get rid of your cell phone and look for a long distance carrier with a low per minute rate and no monthly fee.
Cancel newspapers, magazines and other periodicals. Everything you need is available for free in the library, on the internet or on TV.
Turn down the thermostat, use energy efficient bulbs in the fixtures, turn off the lights when you leave a room, ask your local utility companies about the budget statement and read the many other energy and money saving tips available on the website of the US Department of Energy listed.
If you are employed, ask if your employer offers a Section 125 plan or flexible spending program. If this is the case, enroll in the plan as soon as possible to pay for your health premium, health care expenses, and dependent care expenses (if applicable) in pre-tax dollars.
Buy generic prescriptions whenever possible and get the best price by calling local pharmacies and comparing prices, increasing your health insurance deductible, and reading and understanding your health insurance plan to be a smart consumer of health services and save money .
6. Stuff in your home
Declutter, organize and simplify your home environment. Host a flea market and fill it with the things you don’t use, don’t have space to display, or don’t have easy access to. You can also consider selling items on eBay. Another option is to donate your items to a charity as your gift may be tax deductible. Your stuff is someone else’s treasure.
If you work – take your lunch with you, shop at a discount store and buy in bulk, skip junk food, avoid buying ready-made meals and avoid eating out for dinner. Have you considered that your daily latte might cost you $600 a year?
Cancel your gym membership. Try walking, running, hiking, or biking. It’s easier and more convenient to step through the front door and start exercising, and the fresh air is invigorating.
9. Rest and fun
Stay home with a good book or rent a video or DVD instead of going to the movies. Pop your own popcorn, snuggle up in your favorite armchair and have a fun night at home. As painful as it is, you might as well drop your cable TV.
Money problems are rarely related to money and are more likely to be related to your lifestyle. For example, I recently spoke to a small business owner who told me he was struggling financially and was looking for ideas to bail out his business. He then mentioned that he was going on vacation with his family next month. He must have felt the need to justify his vacation plans because he told me that despite his dire financial situation he would take the vacation because it was important to create a positive memory and quality time for his children. I wonder how much he will enjoy the holiday when his business is on the brink of collapse.
If you are experiencing financial difficulties or see it looming on the horizon please do not try to justify further spending, cut all expenses today and when you are out of debt start saving and building finances for at least one year reservation. It can be done! Much luck.