How to Save Money During Hard Economic Times

We've seen the news about the tough economic times, so during these times knowing how to cut corners on personal expenses and changing spending habits is crucial. The following steps will help you save money in practical ways that will impact you now and in the future.

Step1

Coupons Decide what you can live without doing, such as entertainment. Maybe you can go to the movies once a quarter instead of once a month. For discounts clip coupons from the mail, newspaper, internet, etc. Take your lunch instead of eating out. Carpool to save on gas. Shop at a one-stop-shopping store to prevent multiple trips in order to save gas. Use a water filter at home to save on the cost of buying bottled water.

Step2

Get on fixed rate plans with your utility companies, such as the electric company. Fixed rate plans provide savings during times when prices typically climb, such as summer months. This type of plan guarantees one rate for a certain period of time. This gives you the security of knowing your electricity bill will remain the same during that period.

Step3

As painful as it may be, you may have to temporarily cut back on all unnecessary entertainment, i.e. sports events, movie, concerts, etc. If you must travel by air use websites such as Priceline.com, Expedia.com, and Orbitz.com for discounts on air travel, hotels, etc.

Step4

Call your credit card companies and negotiate with them to lower your interest rates, and if possible, transfer high interest rate credit cards to a lower interest rate card.

Step5

Water the lawn only when necessary to decrease the water bill. Eliminate all unnecessary water, energy and fuel usage, and all unnecessary purchases, large or small.

Step6

Programmable Thermostat Install and use a programmable thermostat for your central heating and air, which will save you 10% a year on your bill. Shutting the central air and heat on and off will increase energy use, and in turn increase your electricity bill.

Step7

If possible, negotiate with your employer to work a 4 day work week, or to work from home as much as possible. This would be a tremendous savings on fuel costs for you. Example savings (based on a 5 day work week): $70 to fill up; by working from home one day a week you are saving a minimum of $14 a day in gas costs ($70/5 days = $14). Based on this example, you would save a minimum of $56 a month by working from home one day out of five ($14 a day x 4 days a month at home = $56 a month savings in gas costs).