Making Every Penny Count: How to Stretch Your Budget

It’s important to take regular inventory of your financial situation - and most importantly, your budget. Remember, circumstances that affect your monthly spending can change at any time, whether they are things you control (your grocery bill) or things you can’t (gas prices). That’s why paying close attention and making modifications to your budget on a regular basis is vital.

Let’s take a look at few key budget items and how you can cut them down to size:

Utilities:

Watch your thermostat. You’d be surprised how a few degrees can make a huge difference in your power bill. Call your provider and ask if they offer a free energy check program — it could show you ways to save big. Check your phone usage. Would going "cell-only" save you money? Or maybe ditching the cell would be a better idea with your calling habits — check out all your options.

Insurance:

Raise your deductibles on home and car insurance, and drop collision if your vehicle is paid for. But don’t drop liability insurance — should you get hurt, it could be the only way to avoid financial catastrophe. Shop around to make sure you’re getting the lowest rate.

Food:

You know the culprit — eating out. Enjoy special nights out occasionally, but eat most meals at home. And bring lunches to work. Make a meal plan and a list to use at the supermarket—this will stop you from buying things you don’t need. Use coupons to give you meal ideas and save money.

Clothing:

Plan your shopping needs. The last thing you want to do is buy on impulse. List your clothing needs and wants, then stick to them. Buy for quality, not fads. And buy things that will coordinate with what you already have.

Transportation:

With gas prices so volatile, plan your trips wisely. And consider the car itself - how long do you plan to keep it? If you do plan to buy soon, take a close look at the new, more fuel efficient car options. And remember, walk or bike when you can, especially if you take cabs often. Live far from work? Try forming a car pool.

Small changes really can make a huge difference in your savings. Just make sure you don’t spend the money you save on something else. Bank the savings, or better yet, use it to pay down your debt. The road to financial freedon just got a little shorter!