6 Tips For Trimming Your Budget

With the economy in freefall, everyone is concerned about spending too much money. 

We all need to save money but a lot of times people don't know where to start.

We have a lot of expenses.

With spiraling costs it is difficult to live on a shoe string budget.

Many people are losing their jobs and yours might be next and so it is wise to curb our expenses.

How do we do that? Here are some tips that can help you save some money;

1) Cut your credit card into four pieces and throw it into the trash. 

This plastic money has created havoc in the lives of people.

The way it lured people to swipe and get wiped has left many people in financial mess.

Actually we end up buying things which we don't need just because of credit cards.

Pay only cash when you visit a super market or mall.

That will help you in only buying stuff which you need.

If you are using credit card, only use it to the extent that you can pay it off in a month's time.

Keep your card expense to the minimum.

If you have more than one card, try and close the others.

Keep only one card and deal only with a single lender.

2) Make a list of expenses you have every month. 

The ones that you have to pay.

Not purchases you could do without- mortgage payments, utility bills, education expenses, medical insurance payments, and so on.

See how much extra cash you are left with. Save 10% of it.

3) Before going grocery shopping, check online at your neighborhood stores as to what the rates are. 

Utility items like meats, poultry, veggies, fruits have an expiry date within a week.

Go on the last day to buy.

You are sure to get these items at half the price.

Also look out for sale and discounts.

Nowadays online stores offer many discounts.

Log on to avail them and reduce your expenses.

Why should you pay more for the same product?

4) Reduce your outings and eating at restaurants.

This is another major expense that we can do without.

Going to a cinema hall is very expensive. Instead wait for the DVD to come out.

You can watch the same movie at less the cost.

5) Use a car pool to go to work. 

If your friends live in your neighborhood then you can plan to pool.

This will help you save on gas as well as you will be doing a big favor to the environment.

6) Lastly try to earn residual income. 

The internet has opened up a Pandora's box.

There are immense opportunities to earn some extra cash.

Internet marketing, having your own website and earning through Adsense, selling on Ebay are some of the ideas for making money online.

Whatever it is there are immense opportunities to earn money.

So not only can you cut down on your expenses you can also learn to earn automated income.

After all extra cash doesn't pinch?

There are many ways people can cut their budget and save more money.

Mostly it is by eating out less and reducing your discretionary income.

This is the hardest part people to do- we are built to be consumers.

However, if you plan on cutting your budget you really need to make hard choices.

Everyone has fat in their budget they cut.