Stretching the Family Dollar
Have you noticed? Being frugal is now stylish! No longer relegated to the rungs of poverty, it has become mainstream as families struggle to get ahead in times of economic pressure. With rising house prices, stagnant wages and increased unemployment many families have found their disposable income slashed viciously. Many families will be thrown into a tailspin attempting to deal with these challenges.
There are two options available to such families. Earn more. Or spend less. We will look at earning more in another column. Today we will look at spending less. If we take a look at our biggest bills and find strategic ways of reducing the cash bleed, there will be more left over at the end of the month for saving.
Utilities. Use less AC/Heat. In the summer use fans during the day or spend much of the time in the basement if you are housebound, the basement will be cooler than the rest of the house. In the winter turn the heat down and use sweaters, socks to amp up the comfort level. It will also amp up your savings.
Communication. Get a magic jack and eliminate long distance fees to Canada and the US. Eliminate cell phones if possible. If not, get a pay as you go plan and top up using the minimal amount. Get an add-on that allows you unlimited texts or as many as possible for as little as possible. Communicate only with texts while on the go. Use the magic jack when home. If you only use the internet for sending emails consider getting the lowest package available.
Insurance. Drive safely so you don’t get stuck with higher rates. If you are about to move, check out the rates in your new area code. Some area codes get higher rates than others depending on the claim rates in that specific area.
Fuel. Never top up on the weekend. It’s ridiculous the percentage increase that is applied for weekend travel. Top up by Thursday and get familiar with the rates at the different stations. Use the stations that are consistently lower and offer reward points. If you are travelling far top up in the more rural areas, rates are way cheaper for some reason.
Food. Coupons and flyer deals are the best way to get your food bill looking healthier. It takes some planning but the benefits are well worth it. Stock up on non perishables when on sale and plan meals with seasonal fruits and vegetables to avoid paying a premium for out of season food. I bought ten bottles of vegetable oil the other day for two bucks each, which will last for the next ten months. Substitute expensive meats with creative bean dishes, not only is it cheaper, it is often way more nutritious. Stop eating out. Celebrate special days at home. With a little effort it almost always tastes better and saves you a bunch of money. Pack lunches.
Baby Stuff. Buy furniture and equipment at garage sales and thrift stores after ensuring safety. Clean and re-finish to your own tastes. Save baby clothes for future children. Buy store brand diapers, wipes etc. always cheaper. Breast feed, by the time you go back to work after one year, the child will be ready to take whole milk which is way cheaper than formula.
Beauty. Do your own hair, your own facials, your own manicures and pedicures.
Exercise. Forego the gym. Go on walks. Do you know anywhere that has steep stairs. Use it for a free invigorating cardio workout. Crunches and abs do not require equipment anyway.
Rent. If you are renting a townhome and down on cash, consider getting an apartment until times get better. Most apartments come with utility bills included in the cost so you would be avoiding the bills normally associated with a house or townhome.
Refinance. Negotiate lower rates on credit cards. Eliminate all but one if possible and pay off every single month. Unnecessary credit is a trap that benefits everyone but you. Get back into cash, it is safer and better.
Apply these principles and see your bills taper down and your savings increase.
