saving money | Debt Management Credit Counseling Corp.

Wasting money is not only detrimental to your overall financial well being, it’s irresponsible. Your house and living expenses make up the major portion of your personal budgeting plan. If you are not careful, they will leave you with little or no money to build financial security, or play with. Just like spending cash unnecessarily, paying for home expenses that are unnecessary is just wasting money. Here are some ways people waste money on household expenses.

Paying for the same service twice.

Most households subscribe to cable T.V. A good portion of cable subscribers also pay additional money for one or more movie channels. It’s not unusual for these same families to rent movies from video stores and/or subscribe to a movie service via mail. In this scenario, there are now three resources included in the household budget for movie viewing entertainment. Which, by the way, is technically a discretionary expense, not even a necessary expense.

You can save by trimming down this expense to one good service that best meets your family’s movie entertainment needs. List and analyze your movie viewing options. Determine which service gives you the most benefit for your money. Then, make an informed decision on which service to keep. Reducing this household expense could save hundreds of dollars per year.

Paying for services that you don’t use or really don’t need.

This is most common with home phone services. Features like call waiting, caller ID, return call service, long distance packages, etc, etc, etc. are extra expenses that you could possibly live without. Is the convenience of caller ID worth a fee of nearly $8 per month? Do you really need it? Eliminating little money leaks like this adds up to significant yearly budget savings. Review all of your household expense bills to see if you’re paying extra for services you don’t need. Eliminate extra services and the fees that go with them whenever possible.

Sometimes making lifestyle changes can reduce expenses significantly. You can minimize costs on essential household expenses by simply being more aware. During Summer months, don’t turn on the air conditioner until you can’t take it anymore. Not using the air conditioner will save the most on home energy expenses. Many gas and electric providers offer energy efficiency evaluations for your house, free of charge. Take advantage of this service to see where you can make home improvements that could mean substantial savings in energy costs. They may also offer suggestions for lifestyle changes that can reduce energy expenses even further. During winter months lower your thermostat a few degrees and dress warmer if necessary.

Review, remove, and reduce expenses to stop wasting money and trim your household budget. Analyze each household expense for necessity and the costs associated with it. Make an effort to reduce each expense to the minimum amount possible, while still meeting your family’s needs. Before you know it you’ll be saving hundreds, if not thousands, of dollars on your household budget expenses each year.

DMCC is a 501 (c)3 nonprofit organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with debt. Education is provided free of charge to consumers, as well as personal counseling to identify the best options for the repayment of their debt. To speak to a certified credit counselor, call toll-free 866-618-3328 or email contact@dmcconline.org.

Saving money is one of the single most important steps to achieving most of your financial goals in life and becoming financially sound. The sooner you begin to save, the better of you will be. Having a savings in place can also serve as a form of protection during a financial crisis such as job loss, unexpected medical expenses, death of a family member, etc.

A savings serves as your cash reserve or safety net when you need it. The key is to have it in place before the need arises. At the core of building adequate savings is debt avoidance.

You should try to save a minimum of 10 percent of your take home pay in addition to your retirement planning contributions. If you do this on a regular basis, you will become used to it and accustomed to living below your means. If you are able to save more then 10 percent, do it!

Also, you have 3 to 6 months worth of expenses saved up as your emergency fund. This amount includes all expenses, fixed and unfixed. For example, if in January you spent a combined total of $2500 on your mortgage, car loan, home utilities, insurance, food, credit card bill, and other expenses, then you would need to save three times that, or $7500 at the minimum.

Unfortunately, most people live paycheck to paycheck with little or no savings. Work to build your reserve as fast as possible. Consider automating your savings. Most payroll providers provide an auto transfer feature directly to your savings when you get paid.

Start saving as early as possible. The amount doesn’t matter in the beginning. Just start some place and be consistent. Condition yourself into not missing or needing that amount. Over time, your savings will grow due to your diligence. View your savings as another bill that has to be paid. Once you pay off a line of credit (car note, credit card, or mortgage), continue to pay that same amount toward your savings.

Before you know it, you will have the protection you need on the event of an emergency. By building your savings now, you will have a larger nest egg available when you need it.

Ways People Waste Money

Save Your Money