Module seven determine where cuts can be made. Not all budgets require you to make cuts to your spending, but a lot of budgets do. determining where cuts can be made can sometimes be a little difficult, especially when we are giving up something we really enjoy. Just keep in mind that the cuts you make need to be realistic and something that you can follow through on. Cut bad habits. One great way you can cut costs is to cut out some bad habits that we all have.
If you are a smoker, you could cut out cigarettes. The average price for a pack of cigarettes is $5 and 25 cents. According to the American Cancer Society. A light smoker smokes about 10 cigarettes a day. Usually there are 20 cigarettes and a pack which is a pack every two days. If you take that into consideration, a light smoker is smoking almost $1,000 a year in cigarettes.
Think of how much money could be saved in a lifetime. If you can quit or you don't think that's a realistic goal. Maybe just Try reducing your consumption. Another bad habit to cut could be alcohol or maybe you have a daily donut fix. Bottom line is we all have habits that are not good for us. They are habits that take money away from your bright future and could be cutting your life short.
Decreased transportation costs. Sometimes our car can squeeze out a little more change than just what's falling between the seats. One excellent way to cut costs is to reduce your transportation bills. You can consider starting a carpool with your coworkers not only will starting a carpool, save you money and gas. It also helps the environment and gives you a better sense of camaraderie between coworkers. You might also consider using public transportation.
Most cities have bus stops all over town available and they are very affordable. Maybe you live close to work, you could consider riding a bike. What a great workout and a zero gas expense. When you own an automobile keeping it running well can help keep costs down also While we don't relish paying for car maintenance preventative maintenance can prohibit impending doom from happening. flushing out your radiator every 30,000 miles or five years can reduce rust and scale buildup. rust and scale buildup is one of the leading causes of cooling system component failure.
This could cause the engine to overheat and possibly lock up. preventative maintenance on a vehicle helps save money in the long run. Reduce utility bills. Another way to cut some costs is to try to reduce some of your utility bills. Maybe you don't need to have the 596 channels that you currently have from the cable company. You can reduce the amount of water used by taking showers instead of baths.
You can also try limiting the time in the showers to save water or water your lawn less. Maybe you could reduce your electric bill by switching your light bulbs to LED light bulbs. Sometimes something as simple as just turning off the lights when you leave the room can save a few bucks. You might consider getting electronics that have the energy symbol on them. There are many ways to reduce your utility bills, you just have to figure out which ways work best for you. Decrease entertainment expenses.
Well, you do need to have some room in your budget for entertainment. There are some cuts that can be made to this part of the budget. Also, having an entertainment section of your budget is great in moderation. You don't want to go out every night that's a big expenditure. Going out occasionally is great and can be just as satisfying. Check in see if your town has any special events that have free admissions.
A lot of cities will offer free movies in the park on certain nights. You can bring your own picnic and make a date out of it. Sometimes you can find coupons in the newspapers for deals on activities in your city. Maybe the cut you are making is as simple as only going out three days a week instead of five. Case Study. Marvin and Deena have been married for six years now.
They met in college and had instant chemistry. While they are very happy together. They are waiting done by student loan debt for both of them. They decided that they needed to make some cuts in their budget to get this debt off of their plates. Marvin decided that he was going to quit buying bottled water and would start drinking tap water. He was drinking six bottles of water a day and it could get expensive.
He also decided that he would start carpooling with his neighbor to work because he works at a building down the street from his job. They are both going to roughly the same areas so they might as well go together. Dena told Marvin, she was ready to make some cuts. Also, she cancelled all of her magazine subscriptions and started taking showers instead of baths. She also has decided that she would stop buying her daily coffee from the coffee shop and just bring some from home. Together they are able to strengthen their financial situation