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5 Ways to Cut Spending Now

by admin on February 27, 2014

I recently came across an article on yahoo titled “35 Things You Can Do Right Away to Start Spending Less” Some of these things are so simple you may not think you’ll save a substantial amount of money but when combined you will see a decrease in spending.

Here are 5 you should start doing today:

Wait at least two days before buying anything over $50. Depending on your own finances, $50 may or may not be considered a lot of money for one item; but the thing to consider if you don’t feel like $50 is a lot of money is. How many $50 purchases add up to your definition of a lot of money?

A new pair of shoes at one store, a new bag at another, a $50 lunch at a nice restaurant, a massage at the spa, etc in a few hours on a leisurely afternoon you could be looking at a $300- $400 decrease in your bank account! Two weekends like that a month and you’re losing nearly $1000 a month that you may not realize.

Plan and cook your own meals. This tip has financial and health benefits. Typically you will cut the cost of a meal in half by making it yourself. Another benefit, more often than not, meals you make for yourself are healthier than what you may order out. When eating out you subconsciously feel like you’re treating yourself, so you may opt for that slab of ribs and side of carbs instead of that smaller portion of salmon and veggies.

Buy quality items. The idea of purchasing a more expensive item may seem counterproductive but in certain cases think of the long run. A simple example is headphones. If you go to the electronic department of any store you are bound to see a large arrangement of headphone options with a very wide price range, from as low as store brands $0.99, to popular name brands as much as $300 brand new. Why would someone spend $300 when they can spend 99cents? Simple, not all headphones are created equally. I’m not suggesting that the next time you’re in the market for new headphones you shell out $300 but maybe consider the $10.00 ones instead. If you buy the cheaper product but have to replace it every other week you will typically find you cost yourself inconvenience, annoyance and funds.  Also look for products with warranties and register your items. Even lower priced products often provide a warranty so if the product does stop working it can be replaced.

Think of your spending in hours instead of dollars.  One of the quickest ways to halt frivolous spending is to think of money as increments of work. For example if you make $16 an hour you wouldn’t think of that new jacket as $100 dollar but instead as 7 hours at work. If you’re a salary worker do the math. Most full time workers range 1900- 2000 hours of work per year. Take your salary and divide it by the amount of hours to determine how much you make.

Ex: 40,000/ 1960 = $20.40/Hour before taxes (even less for the many of you who often work more than office hours)

Is 2 hours of hard work really worth that fancy meal you could make at home?

Try different brands. We all have that one friend (or maybe are that one friend) who is brand loyal to a fault. No matter what their financial situation or what other brands may be available they only want a certain brand. Some items this makes sense because there may be slightly different ingredients or organic product but for a lot of products the store brand has the exact same ingredients and at a lower price. Try store brands of products you like, worst case, you don’t enjoy it as much and go back to your previous brand. Best case scenario you don’t see a difference and save yourself a few bucks at the store.

For additional tips read the full article:

35 Things You Can Do Right Now To Start Spending Less Money

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