Financial Tips

How to Save Money : Controlling Household Budgets

Household budgets are feeling the strain these days. Gas prices are soaring, the cost of food is rising and interest rates on credit cards and mortgages are up. Do you feel like you're headed for a budgetary meltdown?

Don't despair. Credit Counselors knows from experience that almost every household budget can be trimmed. An added bonus: as you learn how to control expenses, you will free up more money for savings. There are many tips to trim household budgets which, if put into practice will really pay off in the long run.

Involve the entire household to maximize your efforts. Ask family members for cost-cutting ideas. Family members concerned about the environment might suggest ways to save on energy. Children can also brainstorm ways to save money, like packing homemade lunches or swapping video games with their friends.

Emphasize the positive. Talk about your family's financial goals and explain how cutting expenses will contribute to achieving those goals. Set monthly cost-saving targets and when you achieve them, celebrate with an inexpensive treat.

The following ideas from ClearPoint can jump-start your family's budgeting efforts. Working together, your family will soon be in control of household budgets, rather than at their mercy.

Rein in utility costs.

• Home heating bills have seen large increases this year. Turn down the heat! Lower your thermostat to 65 degrees when your home will be unoccupied. Reduce the temperature even further at night (wear more layers of clothing and use more blankets). Programmable thermostats are well worth the investment.
• Weatherproof your home. Check for leaks around doors and windows; replace weather-stripping. Does your attic need more insulation?
• Stop money from running down the drain. Take shorter showers, reduce the temperature on your water heater and install a low-flow showerhead. Repair leaking faucets and toilets.
• Don't turn on the dishwasher or washing machine unless they're full. Hang clothes outside to dry now and then. Or, hang wet clothes to dry in the laundry room or basement; you'll boost humidity in your home (a nice bonus during the winter), while also saving energy.

Save at the grocery store.

• Buy store brands. They cost less than name brands, and are of acceptable quality.
• Plan your meals before shopping, take a list to the store and stick to it.
• Coupons can save you hundreds of dollars a year on grocery bills. Take advantage of specials and store loyalty cards to help make budget dollars work even harder.

Curb entertainment expenses.

• It's generally more expensive to eat at a restaurant than to buy and prepare your own food. Make double recipes when you can and freeze the extra meals to reheat on nights when you don't feel like cooking.
• If you're used to dining out with friends, substitute potluck dinners and take turns eating at each other's homes.
• Add up what the family spends each month for movies, video games, social outings and other forms of entertainment. Consider some low-cost outings (museums, free concerts, nature walks, etc.) that might be equally enjoyable.

Watch those credit cards!

• Always pay more than the monthly minimum. In fact, pay as much as you can each month and you'll knock down that balance (and save on interest costs) much more quickly.
• If you have balances on multiple credit cards, make it a priority to repay the ones with the highest interest rates first.
• Try living without your credit cards for a week or two. You might find it much easier to control your family's cash flow by paying cash. You'll also learn how to distinguish between "wants" and "needs."

Final words of advice.

• Remember to support, not sabotage, each other's efforts. There may be setbacks from time to time. Just get back on track as quickly as you can.
• If your efforts aren't working, ask Credit Counselors for advice. They are trained in financial counseling and can work with you to develop a personalized budget and action plan. Your Credit Counselor will do an in-depth analysis to identify more ways to save money for your future needs.
• If it is appropriate for your situation you may consider signing up for a debt management program, which can help consolidate your bills and negotiate lower interest rates and late fee payments with your creditors.
• One final recommendation: Do not delay! There's no rule that mandates you must wait until the New Year. Start taking control of your spending today.

By following these money-saving tips, and seeking professional credit counseling guidance from Credit Counselors, your budget will be on the road to recovery in no time.