Cutting Expenses in Hard Times

The recent economy has resulted in a nationwide “tightening” of budgets for people of all financial levels.  We all understand that elimination of unnecessary expenses, like going to the movies or out-to-eat, is essential to many during these tough times.  But what if you are unemployed or are struggling beyond cutting out the “extras”?  Here are some other tips on how you can cut down on your fixed expenses to save money each month.  Some of the saving might not be much, but if you add them together, it can amount to a significant reduction in your monthly bills.


·         Life Insurance- It is feasible to reduce your policy for less coverage, or even drop your life insurance policy all together.  Are the benefits that you might like to have one day worth spending the extra money that you need to survive today?  It is always possible to renegotiate your policy later or pick up other coverage.


·         Car Insurance- Now might be a good time to do some shopping around.  Every company will quote you a different rate, and make sure you are aware of all of the discounts.  Let your current company and others know that you are shopping and call many companies to get the best deal possible.  Also, combining your insurance (home, car, etc.) will also help to get the best rate.


·         Energy Consumption- this is one area in which many people are aware that there can be abundant savings.  However, most are uninformed of all of the areas in which small changes can lead to big savings.  For further information on how to “green” your home, visit to discover where you might be overspending.  Big fixes are probably out of the question, but there are many inexpensive changes you can make to save big bucks on your utilities.


·         Credit Cards- You can call any of the three major credit bureaus and they can have a fraud alert put on your card for no fee.  Also, if your interest rate has soared, try for a reduction.  If that doesn’t work, shop around for a better rate and transfer the balance from one card to another.  Cutting interest rates can have a huge impact per month.


·         Mortgage- Obama’s Making Home Affordable program makes it possible for anyone to refinance, even without much equity.  If your rate is higher than the current average, you should look into refinancing.


·         Automobile Loans- If your current interest rate is higher than the average, you should be able to refinance for a small fee, and save large amounts over time.


·         Telephone/TV/Internet- Finding one carrier for all of these services can save you money.  You should also evaluate whether or not you really need the land line, if you have a cell, and if there are any other “extras” that you don’t really need.  You should also shop around for these services and let each company know that you are doing so.  This can result in deals being offered to get your business, which could save you money for a while.


There are many ways to save money, like looking for sales at the local grocery stores or driving less to conserve gas.  However, the most important thing is that you stay positive, keep track of your savings and continue to work towards reduction in expenses.  The more you work at it, the more savings you will see!


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