Slice and Dice

Discuss ways to decrease it. This is most likely the largest expense, so it needs serious consideration. Think about refinancing, renting out rooms, challenging your tax assessment to lower real estate taxes, shopping your insurance for a lower rate, or moving. Did you over buy? Can you satisfy your family’s needs with less space? What is the most cost-effective option to lower this expense?

Get involved! As an incentive to participate as a board member or officer, some associations will waive the fee or offer a discount. The last alternative is to move, but again, it must be cost effective, especially if you are moving just to rid HOA expenses. Do the math!

Shop your insurance. There is an insurance war going on which makes it a perfect time to lower your premiums. We know this because of the many commercials. Many are successful in lowering their premiums by at least 15%. A few savings strategies include:

• Bundle policies for discounts
• Increase your deductible
• Make annual or semi-annual payments instead of monthly
• Install an alarm system and smoke detectors
• Ask your insurance agent to suggest ways to save
• Understand your credit score impact (we’ll cover credit score in depth later on)

Ask your family if you really need a home phone. And if you do, ask if you really need long distance, Caller ID, call waiting, voicemail, etc. You get the idea. If you just can’t do without it, review the bill and find ways to trim fees. For example:

• Purchase an answering machine
• Use your cell phone for long distance calls
• Ask your alarm company if they can attach the connection to your cell phone vs. your home phone
• Remove services you did not agree to
• Ask for discounts
• Avoid long contracts if possible

Ways to save:

• Check for company discounts (for example, Federal employees receive 10-15% discounts from various carriers)
• Review your bill for excessive or unauthorized fees/services and mistakes
• Inquire about discounts or specials
• Be wary of contracts that tend to hook you
• Consider switching to a service that offers flat fees to avoid surprises
• Connect to home Wi-Fi service while at home
• Connect to local Wi-Fi services away from home

• Ask the questions: Do we really need all of these channels? Do we watch that much TV or that many movies on HBO and other premium channels? Can we live with a cheaper package and supplement with Redbox, Netflix, and OnDemand?
• Call to periodically to inquire about discounts, specials, and bundling.

Consider bundling with other services such as Cable for a discount. If you only need limited access to the internet then visit the library or coffee shops. Most social spots provide free Wi-Fi.

Saving Tips:

• Plug the leaks (e.g., sinks, toilets, etc.)
• Set thermostat to comfortable settings (use blankets or ceiling fans)
• Close or open outside vents, change filters, conduct routine maintenance
• Unplug appliances and electronics for big savings; electricity continues to flow even if the item is turned off
• Adjust settings while on vacation

Shop for the most economical company. You don’t need the most expensive or name-recognizable company to protect your home. You just need one that gets the job done. Look for local companies.

Not much can be done to reduce this expense. So, move to the next one.

This is one of the items that is considered a “budget buster” meaning that this is where most people deviate from their maps. This expenditure can be trimmed 99% of the time. Find a number that everyone can live with and stick to it.

• Be strategic when shopping and find the most economical stores for the items you use most. Ask the butcher or meat department for the timetable for discounting meats.
• Arrive early for the best choices and immediately freeze for future use.
• Use coupons.
• Buy generic foods.
• Plan meals around items that are on sale.
• Before you go the grocery store, take inventory of what is in your cupboard, refrigerator and freezer and plan meals around what is there. Many of you can probably eat for two weeks and not have to grocery shop! This is a great time to be creative—tap into your culinary skills and have fun!
• The real problem with food on the shelf is that it’s equivalent to money sitting on the shelf that could be invested, earning interest, or paying off debt. Take the money off of the shelves and make it work for you. When going to the grocery store, only purchase what you need that week.

Without question, this too is another item that can be reduced and is considered a “budget buster.” Count the number of times your family eats out each week—include breakfast, lunch, and dinner for everyone! Next, reduce the number of times each person may eat out, whether it is with the family, friends, or co-workers. This will eliminate the unmindful and impulsive decisions to “stop” for fast food on the way home, after leaving the soccer game or dropping a few dollars in the vending machine for a mid-afternoon snack. These unplanned stops were not scheduled on your map and were acceptable only because we didn’t have a map during our paycheck-to-paycheck way of life—those days are long gone! Moving forward, use restaurant coupons to help lower the cost. Remember, 50% is the goal and reducing the frequency of dining out will get you there faster than you might think.