FINANCIAL STRESS
AND WOES.

CUTTING BACK AS A CONSUMER.

By: Joseph Warren

The financial crisis has hit all of us within our age bracket. Our amassed wealth has lessened by at least 30% and we won’t see those great numbers again for many, many years. Patience is going to be tested here, as we wait and wait, for our money to increase, little by little. Oh, if we had only cashed-out in some way, sooner. Oh well, now it’s time to really see where our main expenses go and tighten our belt, as our parents used to say.

Well, tighten we go, and I know where they must have gotten that saying because one of the first places you look to cut spending is, your grocery bill! But be fore we hit ourselves too deeply in our Del Monaco rib cage, let’s look at our most common and most important bills. The bills that let us keep our credit score.

Phone
Okay, how many phone lines do we need? And how many phone lines do we have. Now, most of us have cell phones with yearly plans, so we are stuck there. But while we are stuck there, our LAN line phones are expendable; and if you have subscribed to all of the LAN line services, you could save $70.00 per month. Now if you need the extra phone line, try cable, it’s about half of the price of the telephone service.

Credit Card
Pay these evil cards down. They are the devil in lipstick. It is imperative that you always pay more than the minimum because the minimum will create havoc and sink your finances. Advice – don’t use them. Pay them down and pay them off. If you have more than half of your credit limit used on your card, it affects your credit score.

Electric
You have to have electricity, but it’s time to look at energy efficiency for the future. Sometimes if you put money out now for an efficiency project, you’ll realize your gain in a few years. So review your finances and see if this would make sense for your situation. Most electricity is used in the appliances, so maybe propane or natural gas would be a better alternative.

Heating the water is an enormous expense.The water heater is the biggest electricity guzzler, and there are alternatives. If you can cut down on hot and warm water washes, you’ll save quite a bit of energy and money.

Oil
If you can, find an alternative for oil furnaces, such as wood or even coal. It may be time to look into other resources as the price for oil is supposed to increase four-fold in the next few years.

Heat
Especially during the winter months, we want to watch our heating bill and our health. Don’t skimp on the heat, just be wise and don’t waste. If you’re not utilizing the entire house, close the doors and only heat the rooms you are utilizing. Along that same line, turn down the vents or close the radiator valves in the rooms that are not being used. Use the wood stove or fireplace as a main source of heat and take advantage of its ambience. After all no one ever said that being frugal had to equate orgreism.

Petroleum
Try to condense all of your errands into one run.

Also, the less you drive, the less you spend too. Ever notice when you go out, you spend money? Well, then it stands to reason that if you don’t go out, then you won’t spend money. Try it. Sickeningly, it works.

Cable/Internet
Everyone uses cable and everyone uses the Internet. But do you really need both? First, look into the cable company’s bundled program, it may be worth it. Just keep in mind that the prices change after their introductory offer. Now, the question becomes, do you need all of the channels on cable? No. No you don’t. You are now able to receive all of the stats and news via the Internet. Every news organization has an Internet and Mobile television feed. Most all of the television programs can be viewed on the Internet as well. Even the children’s shows are viewable via the Internet. So, save yourself the extra $45.00 dollars or so each month and watch free broadcast or basic cable and hook up your Internet to your television set with a simple cable and watch all types of programs. Amos and Andy, I Love Lucy, an Esther Williams movie; it’s all there, you just have to google it!

Grocery Market
Make a conscience effort to only go to the market when it is necessary. Make a list and stick to it. The biggest time saver and money saver is sticking to that marketing list. Make our your menu plan, write down your ingredients, shop. You’ll save about 20%! And for heaven’s sake, go to the market that has the lesser prices. Markets in more affluent towns and cities have different products and higher prices. Many stores also have incentives to bring in you in as a customer, such as your petrol or gasoline discounted if you spend so much money per month. Don’t be fooled with some store brand items either; they really do sometimes taste better than our “favorite”. Don’t think of it as “poor” shopping, think of it as no longer shopping poorly.

So far, we’ve saved, about:
40.00 per month off of our cable bill;
We’ve cut a telephone line by half because we switched to cable-phone and bundled services;
We’re saving heat by about 15% by using cold water washes;
We’re not driving as much and we’re ordering things on-line and saving about 20% in petrol; and
We’re saving about 20% on our food bill!

That could add up to about $2500.00 per year in savings for doing nothing, but being a better a consumer. So then, you have to ask, what would I do with that 2500? Pay off the credit card! Or maybe take a weekend excursion and forget about your financial woes!

Now, certain items, we don’t want to admit to, nor realize, or look at the plain fact they are really luxuries, although we look at them as necessitities.

Let’s be honest and see what we spend that’s truly “extra”. A good rule of thumb is, if my Grandfather didn’t do it or need it, it’s an extra.

Now, review your credit card statement and check register. I know, it’s mind-boggling how all of the charges ad up, but they do. Take a look at where your money is going. Be aware. Now, be aware of your finances. Where are your stocks? Biotech? Fortune 500? Bond? Remember, in dividends we trust, as it usually means the company is performing. Now, with money in the bank from which to draw, if you don’t stress and cut back as a consumer, you are able to stretch the length of your money and/or just spend it more wisely.

---

Add this page to your favorite Social Bookmarking websites