Everyone has fixed expenses which are the basic of needs for
our daily living. There is no way to eliminate the fixed expenses but with some
innovative budgeting, you could save some good money from this practice. If you
have debt problem, a good practice in expense control and budgeting can help
you to free up enough money to pay down your debt and may prevent you from
bankruptcy. Of course, to accomplish your goal, you might have to live a very
austere existence and life of sacrifice.
This article will list down some ideas on how to lower your
expenses. While reading this article, you can make a list of you own ideas to
cutting down your expenses.
Ways to Save Money
1. Reduce the Number of Credit Cards
For many people, owning a credit card is the style of life
and there are people holding 5 to 10 credit cards. It’s so convenient to make
payment with credit cards and you many overlook your budget. Although to
terminate all credit cards are not possible for many people, you could reduce
the number of credit cards in hand.
2. Ask for a Lower Credit Card Interest Rate
A major consumer group conducted a study to find out how
easy it is to get a lower credit card interest rate. Fifty-seven percent (57%)
of those who simply telephoned their credit card company and asked for a lower
interest rate got one instantly. Getting your credit card interest rate lowered
depends on various factors. Normally the bank will approve your request if you
meet the following conditions:
1.
You have a good credit rating -- meaning no late
pay notations on your credit report and a good credit score;
2.
You do not have a high debt-to-income ratio and
you do not carry a big balance on your credit card;
3.
You do not send in just the minimum payment
required each month;
4.
You have an excellent payment record with that
particular creditor;
5.
The credit card is not one that is categorized
as “sub-prime”, meaning it is not a secured credit card or one marketed
exclusively to those with bad credit.
When you call and ask for a lower interest rate, your reasoning
should be based on the argument that you deserve it because you’re an excellent
customer or you’re getting better offers from other credit card banks.
3. Always Buy Classic Style on Clothing
Clothing fads come and go so quickly and it will become out
of fashion after a season. Instead, buy only good quality classic clothing that
you can wear five years from now if you haven’t worn it out by then. This will
help you to reduce the frequency of buy new clothes.
4. Know Your Budget on Food
According to some survey, people who do not know how much
they spend on groceries each month are twenty times more likely to be over
their heads in debt than those who know exactly how much they spend on food
each month. A lot of money can be saved by with below practices:
1.
Stop, or reduce the number of times you are
eating out - Dinners you prepare at home are significantly less expensive than
meals you pay someone else to prepare.
2.
Don’t buy what you don’t really need - Good
examples are soft drinks, sugary snacks and other sweets. Giving them up will
improve your health, reduce your medical and dental-related expenses and fatten
your wallet.
3.
Get the best price by comparing supermarkets –
Don’t shop at the closest supermarket just because it’s more convenient.
Driving a mile or two down the road can save you as much as $50 per week on
groceries.
5. Carpool with your neighbours
If you have neighbours who work close to your company, you
can car-pooling with them to save gasoline and transportation cost.
Summary
Above are just a few ideas to reduce your monthly expense,
sit down and list down your own list. You will surprise that by listing down
all your monthly expenses, you will realize that actually there are a lot of
expenses which can be reduced or eliminated. And you can use the saved money to
pay down your debts.
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