Cutting Down on Unnecessary Fees

Whenever you are revisiting your budget (and downsizing your expenditures), there are typically a few stages that you go through. The first stage is typically the easiest. You take out as many discretionary items as possible. For example

But what if you find that you need to cut some more expenses? Here are some areas to look at.

Look to car pooling - With the sports season coming up, many parents are just tied up sending kids to various sports training and events during the week. You can potentially save money on gasoline by planning ahead and car pooling.

Use a low grade gasoline - Many people have this perception that you have to fill up your wheels with “premium” gasoline so that they “protect your car engine”, or “enhance performance”. Most of the time, these claims are false. You can actually use the lowest grade gasoline and your car will run just fine.

Don’t buy anymore new clothes - Clothes are a big expense. You can save a lot of money by skipping this year’s new season items and purchasing off season items on clearance. For example, since it’s spring right now, the new spring and fall lines of clothes are priced at a premium.

Instead of buying those clothes, purchase the winter items up to 70% off. If you do this at the end of each season you will have a nice wardrobe at a fraction of the cost.

It does mean that you will have to wait several seasons to wear your new clothes, but at the end of the year you will have a very nice wardrobe that cost far less.

Use more hand me downs - You can purchase some very nice items at thrift stores. Especially thrift stores in wealthy areas. Find out where the wealthiest areas of your city are, and call those thrift stores. Ask if they have days of the month where all items are half price. Most thrift stores do.

You can also ask your family and friends for clothing if they wear the same size. Most people enjoy clearing out their closets, especially if it’s going to help a friend.

Refinance Your Mortgage - With mortgage rates heading lower, now is the time to refinance. Many will face difficulty because appraised home values are down. However, for those who can refinance, now is a great opportunity to knock off a couple of hundred dollars of your mortgage bills.

Use one provider for cable, phone and internet - Your bills will most definitely be lower if you consolidate your phone or cable provider. In most cases, you are choosing between your cable or phone provider. Either way, you will save a lot by doing so.

Use the same insurer for auto and home insurance - You will almost certainly get a lower rate for both your auto and home insurance if you use the same company. Just make sure that if you switch, you are getting an exactly identical or better policy.

Start cutting coupons - If you are not a coupon fanatic, you’d better start now. Coupons are just like money - as long as you use them for items that you would purchase normally.

The quick way to get started using coupons is to buy some current coupons for a few dollars on EBay, and check out sites like The Grocery Game which will help you maximize sales in your area.

Revise your cell phone plans - Every one is probably paying more than we should on our cellphones. Call your provider and ask how many minutes did you use on average last year and what is the best package based on your usage. Cut down or disable things like texting that waste your time and adds to the phone bills.

Be more energy efficient - Electricity rates are lower at night because it is at a non-peak hour. So do your laundry at night and not in the morning or afternoon. Same goes for the dishwasher. Don’t leave it till the morning. Unplug plugs from the wall for appliances that are not frequently used.

Use a cash back credit card for any expense and make sure you pay your bills in full.- I’m still amazed that very few people use an actual cash rewards credit card at the supermarket. The better cards pay more than 1% rebate for supermarket and gasoline purchases.