When we’re in debt, we spend a lot of time figuring out how to save money and make more room in our budgets. Sometimes the solution is as easy as looking at the other side of the coin at what you’re wasting. Correct a few of these behaviors, and you’re likely to find more room in your budget.
1. NOT USING COUPONS
Yes, they’re a pain. Yep, they’re time consuming. But if you shop sales and use coupons, it’s realistic to save 25% – 50% or more on your grocery bill. For many of us, that’s more than $100 a month. And coupons aren’t just for groceries! Check newspapers and online venues for codes and discounts, or sign up at your favorite retailers’ websites for email offers.
2. NOT COMPARING INSURANCE RATES
Also a pain, but there’s room for savings here. My in-laws recently compared coverage and were sick to discover they could match their policy terms and save over $900 a year with a new company. When you compare, have your old policy available to make sure you are comparing apples to apples. New coverage isn’t much of a deal if it doesn’t adequately protect your assets. (And remember, your car may be a clunker but you need to be able to pay for what you run into, and that other guy might have more expensive tastes or deeper pockets than you!)
3. NOT CHECKING TIRE AIR PRESSURE
One very simple ways to save money on gas is to ensure your tires are properly inflated. The majority of cars on the road are operating on about 80% of optimal tire pressure, and this translates into 144 GALLONS of wasted fuel for a 12,000 mile a year driver. That’s over $500 a year with today’s fuel prices, which breaks down further into over $40 a month. (source)
4. THROWING FOOD AWAY
Statistics vary, but Americans throw away 25% – 40% or more of the food they buy. That’s hundreds of wasted dollars! To avoid this, shop your pantry first to ensure nothing expires on the shelves. Make use of perishables in a timely manner, and after a day or two portion leftovers in freezer containers. Do this, and you’ll save money on frozen meals – for the cost of what you were already throwing away, you’ve got home made.
5. SKIMPING ON MAINTENANCE
If you don’t have the money to keep your car well maintained, you’d better have a plan to cover catastrophic repairs. Don’t want to pay to have your home heat or a/c system serviced? You may find yourself replacing the entire system years ahead of schedule. (A side note on maintenance … BEWARE OF THE UPSELL. Companies get you through the door – or into yours – with cheap “system checks” and then proceed to sell you other services at exaggerated prices. This is a common scam. To help avoid becoming a victim, ask friends or neighbors for recommendations, then do your homework on the companies they suggest.)
If you can tackle that short list, you’ll start to notice savings almost immediately – certainly within the week. It’s like paying yourself to be diligent, and the IRS can’t touch that “income.” It’s a double win!
