Personal expenses are usually classified as discretionary
because they are generally quite flexible. And as such, we
tend to overlook their importance when it comes to budgeting
and saving money. This is the category that people keep the
least track of because they really don't want to know how
much money they are wasting. Here are some tips for lowering
personal expenses in three areas: clothing/appearance,
communications/cell phones, and funeral arrangements.
Clothing/Appearance
Buy used clothing. According to the U.S. Bureau of Labor
Statistics' most recent Consumer Expenditure Survey, the
average consumer spends about $1,850 a year on clothing and
its upkeep. You can potentially cut that in half by shopping
at consignment shops, auctions and thrift stores.
If you must buy new, buy in the off season. This is
especially great for kids' clothes because you know they
generally go up one size each year. Plan ahead and budget
for this. You can also buy clothing at name-brand outlets,
factory outlets, or secondary department stores (where
department stores send their overstocks).
Buy less cost-related clothing; choose fabrics and designs
that are easy both to wear and maintain. Watch out for "Dry
Clean Only" and instead choose garments that you can care
for at home.
Cut back on makeup and perfumes. Or look for sales and buy
generic brands. Most people won't notice the difference.
Donate old clothes to charitable organizations and keep
track of their values to use as a charitable donation tax
write-off. Go to http://www.itsdeductible2.com for a guide
on the value of donated items.
Communications/Cell Phones
Instead of calling, use e-mail. It's free (if you already
have an Internet connection) and you will save money on your
long distance phone bill. Also, comparison shop long
distance plans and find one that works well with your
calling style.
Write a letter. It only costs a bit more than a quarter to
send and it will help you improve your writing and
communication skills.
Keep track of your calling minutes to make sure you don't go
over your allotted time. Most long distance and cell phone
companies have high charges for extra minutes. If you
consistently exceed your plan's minutes, upgrade your plan.
The extra monthly cost for the next step up is usually much
less than the extra charges for more minutes.
Shop around for cell phone plans. Cell phone companies and
plans vary widely, so compare carefully. Now you can even
take your cell number with you if you switch providers.
Before switching from your current company, call them and
tell them you are about to switch and see if they will match
or beat their competitor's offer.
Funeral Arrangements
Make your wishes known about your funeral, memorial, or
burial arrangements in writing. Don't leave this decision to
the ones you leave behind.
Before selecting a funeral home, call several and ask for
prices of specific goods and services, or visit them to
obtain an itemized price list. You are entitled to this
information by law and, by using it to comparison shop, you
can save hundreds of dollars.
Many funeral homes offer prepaid plans, but be cautious
about prepaying because there may be risks involved. For
information about the least costly options, which could save
you several thousand dollars, contact a local memorial
society, which is usually listed in the Yellow Pages under
funeral services.
Keep your discretionary spending in check by modifying your
spending habits. Evaluate your apparel and communications
spending and see how you can improve. Jot down your wishes
concerning your future memorial service and put them with
your will and trust. Downsize or even eliminate those extra
dollars that just disappear each month and put them to good
use, such as paying off debt or investing. Soon you'll be on
your way to a healthier financial you.
************************************************************
© Simple Joe, Inc.
Chemain Evans is a quality control specialist for Simple Joe,
Inc., makers of the popular Simple Joe's Expense Tracker PC
software. Expense Tracker is a quick and simple way to keep
track of your expenses and stay within your budget. Expense
Tracker http://www.simplejoe.com/expensetracker/index2.htm
is ideal for tracking personal, business, home and club
expenses.

We have switched to pay as you cell phones and it forces us to budget our minutes each month. Once you get used to it, it's not so bad and there are a lot of options in the types of phones you can get these days.
ReplyDelete100payasyougocellphones.com is a good place to start.
Cheers,
Charlie
thanks!
ReplyDelete