Following a household budget takes practice, and some families never quite get the hang of it. Recognizing unnecessary expenditures is the first step whether streamlining a budget or simply making small habitual changes to save money.
Determining the difference between needs and wants and only purchasing things that are needed is an effective way to begin cutting expenses. Food and clothing are two areas where most families can trim their budgets.
Impromptu trips to the grocery store can be a huge drain on a bank account. Planning meals in advance, making a list and shopping alone reduce the chance of needless impulse purchases. Avoid grocery shopping when hungry, frustrated or rushed as these situations can also lead to impulse buys and overspending.
Shopping for clothing can be a pacifying experience that is usually expensive and often unnecessary.
Buying new garments for a job interview or school clothing for children may be unavoidable, but money still can be saved at these times. Purchasing washable fabrics, which are often less expensive, save money on dry cleaning. Proper care should be given to clothing already in a wardrobe so they don’t need to be replaced as often.
Children often out grow their clothing before wearing them out. This can be an expensive and frustrating experience, so don’t let their wardrobes get too large.
Purchasing second-hand clothing from thrift stores or from relatives with older children is a good way to keep this cost down.
Small daily expenses can add up to big savings when less expensive alternatives are used.
For example, packing a lunch instead of eating out - even if it is fast food - can save an individual $25 to $35 each week. Over a year's time, that is a savings of between $1,300 and $1,820. Multiply that savings by the number of family members eating lunch away from home and the savings are even greater.
Another way to cut down on daily expenditures is to avoid buying expensive coffee and soft drinks. Purchasing a $3.50 mocha latte may seem like an innocuous splurge, but multiplied by 365 days this caffeine fix costs $1,277.
Unused health-club memberships, phone services, magazines, newspapers and unwatched cable packages are other expenses that can be eliminated.
Preventative maintenance on vehicles and appliances should be done regularly to reduce the chance they will need repaired or replaced.
Routine check-ups to the dentist or family physician should not be overlooked when trying to save money. The initial cost of these visits may seem expensive, but early detection of health problems will cut down on the time and money spent to rectify them.
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SOURCE: Kathy Prochaska-Cue, UNL Family Economist
