Six Ways to Save Money Now

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There are always going to be unexpected expenses that cannot be avoided. A washing machine breaks, a refrigerator goes bad, a dog gets sick. There isn’t much you can do to avoid these types of expenses. However, where you really can cut down on costs is by taking a closer look at those regular expenses – those nagging little costs that add up over the course of a year. Some of these types of expenses include:

Cable TV: We all seem to be under the impression that you will not survive without cable TV. I am proud to tell you that I am a survivor. My wife and I use the good old rabbit ears, hooked to a $20 digital converter box, and we don’t pay a thin dime for our television viewing pleasure. Even the cheapest cable TV service – there is a $15 basic cable service where I live – adds up to almost $200 annually! For most people the costs are more like $500+ over the course of a year.

The added benefit of getting rid of your cable TV is that you may find you have more time on your hands! You can write more articles for Triond or start a small business with the extra time and money you’ll save.

Fancy Coffee: $2 for a cup of coffee – doesn’t sound like much does it? But if you drink that $2 cup of coffee every single day you are talking about a $730 annual coffee bill. $730 – that is enough money to take short vacation, or make a mortgage payment, or buy yourself a tailored silk suit!

Car Payments: I can’t believe how many people carry a staggering car payment. Buying a new car and making payments on it is like flushing your money down the toilet. $250 a month, for five years, you just paid $15,000 for the car with the $9,995 sticker price. A $750 monthly payment for that Lexus you just have to have? That’s a down payment on a nice house. Skip the new car and pay cash for a clunker if you have to.

Cell Phones: Read the fine print. Roaming charges, text messages, limited minutes – they will nail you. Consider getting a pay as you go phone, assuming you absolutely need a cel phone. Believe it or not there are a few of us out here who have managed to survive the day without the cel phone.

Used vs. New: Beg, borrow and steal baby; well, don’t steal. But if you need something, put the word out to friends and family. My wife and I just got a used fridge for free from a friend who upgraded. Our fridge had taken a dive and we were looking at a minimum $300 – but we didn’t end up paying a penny!

Interest Rates: Take a close look at all your outstanding debts and, wherever possible, try and get your interest rates lowered. Sometimes all it takes is a single phone call and you can save hundreds a year and thousands over the loan’s lifetime.

Summary: Getting control of your finances and saving money involves essentially really examining the money going out and determining which expenses are necessary, and which expenses you could live without. I also find it helpful to think of every expense in terms of the monthly and annual costs incurred. $2 doesn’t sound like much – but take the daily expense and multiply it by 365 and you may find yourself questioning the necessity of that cup of coffee.

Understanding your personal finances and getting spending under control mgith be considered a sacrifice by some, but to me it is greatly empowering. When you know your hard-earned money is being spent wisely you sleep better at night.