Bank finance articles and tips

Once you have decided you are ready to find your way to financial freedom, it tends to be an uphill battle from there. The first few months of cutbacks and saving for you emergency fund can be difficult for someone who is used to spending money instead of holding on to it.

In the beginning I had two goals: cut back my monthly expenditures to the bone and build up an emergency fund. It actually sounds just as hard as it was to implement these changes. Here are some of the ways that I personally cut back spending during the month:

• Assess your monthly gas usage. Of course, we all think about gas prices, but I had never really looked into how much gas I was using frivolously during the month. I would take extra trips during the week on my lunch break or after I had already come home from work. Most of the extra usage occurred on the weekends, where I would find myself driving to 2-3 places every day that were not close. I decided to cut weekday trips out totally only driving back and forth to work and limit myself to only one outing on the weekends each day. I was paying $60.00 per week, and after my change, I am down to $40.00 per week. That is a savings of $1,040.00 approximately per year. That
  
• Lowered my Netflix subscription. At the height of my Netflix addiction, I was at unlimited streaming and 3 movies at a time. Now that I am reading more, working more, and live at home, I decided to cut that down to unlimited streaming and 1 at a time. From 26.00 per month to 16.00 per month that saves $120.00 a year.
  
• Eating out. This is perhaps the most flexible area to lower expenses. Of course, you can totally cut out going to restaurants to eat. It is pretty difficult for me to have the motivation every single day of the month to cook. Instead, I choose to eat out a maximum of 2 times per week, maybe even less. All I did was make the effort. At the end of the month, February, I had eaten out a total of $254.55. Knowing this, going into March was like a challenge to see if I could do better. End of March came and I had only eaten out $114.83. That was a savings of $139.72.
  
• Buy Generics. This may seem like a no brainer, but even I was hard pressed to buy generics, even in my financial strain. Be that as it may, almost all food and toiletries have a generic brand for usually 2/3 or half the price. These generics are sold next to the brand because they have the same main ingredients. The only thing that is different is some of the inactive ingredients.
  

Here are some other great ways to cut spending:

1. Eat dinner leftovers for lunch at work the next day.
   
2. Cut out cable.
   
3. Cut down internet. When I paid for cable, ATT had a DSL internet package that was only $20 bucks a month. It was the slowest supposed speed and the lowest plan. I could still watch Netflix and surf the internet at a pretty decent speed. You could always cut out internet totally and use the internet at the library free of charge. Of course, that is pretty extreme for most of us.
   
4. Cut your own hair. As a woman, I cannot personally say that I will ever be able to do this. Since I already have very long hair, I choose to just not cut my hair at all. It may be easiest for guys to shave their own heads as an alternative to weekly cuts.
   
5. Use the dryer and washer less. You don't have to wash everything that has only been used one time. Use your best judgment. Hanging clothes on a clothes line rather than drying can save kilowatts on your money electric bill.
   
6. Keep a price book. Mark down all the prices on the things that you regularly buy and see from there what items you can cut back on, buy generic, or buy during sale cycles. I take pictures with my camera phone to make sure I don't forget price and package size.
   
7. Shop at thrift stores. Always look for used first. I regret now that I never shopped for used clothes and toys for my child. So many brand new items were wasted and given away anyways for lack of use or outgrowing. Children's clothing is along the lines of a disposable item, because they grow out of clothes quickly.
   
8. Invest in a smaller home. I am currently house hunting and only need 2 bedrooms. It's hard to convince myself that going with a house that meets only my needs is the best idea. I don't really need a few more rooms; I just want a few more rooms. For me, a small starter home is good investment for a low mortgage and rental opportunities in the future.
   
9. [b]Make the move to a more minimalist lifestyle. The less money you spend on things, the more you have to save and invest. Invest in only your needs and not always all your wants.
   
10. Stay home. Become a homebody and spend time with family and friends. It will save you on gas, eating out, and mindless shopping.
    

The best thing to do before trying any of these tips is to remember this is not a permanent change. Feeling like you will have to go the rest of your life without, let's say, cable can be quite a deterrent for anyone who is starting out. Try a few of these suggestions at a time or maybe just one a month. All of these changes at once can be very overwhelming.

The good news is that doing all of these things to cut down on the monthly expenses can save a lot of money and get you on a track to a more frugal lifestyle, which can only lead to financial freedom and peace of mind. Since I have implemented most of these changes, I feel better about the savings I have experienced and I find that I truly enjoy being more frugal in life. It puts more money in my pockets!

By Leah M Murphy