Saving Every Day - Healthy Home Budgeting
Household expenses can add up fast. Come up with a realistic household budget and stick to it. Start by making a list of what you need to maintain your home versus what you want to improve and decorate your home. And then consider what kind of sacrifices you can make in the "want" department.
Remember, the important steps to ensure that you stay within your means:
- Determine your monthly take-home income.
- Calculate your total monthly bills and
expenses.
- Make sure you are spending less than you make.
For assistance with the critical savings activities listed above, contact a ClearPoint Financial Specialist at 1-877-877-1995 or use our
online calculators.
Power saving
A little conservation when using utilities in your home goes a long way.
- When it comes time to replace an appliance such
as a water heater, furnace, washing machine and refrigerator, buy and
install energy-efficient machines.
- Don't get burned. Lower the temperature on your
hot water heater to between 110 and 120 degrees. This will not only save
energy, it will reduce costs.
- Call your electric utility company for
information about cost-saving programs. Load management and off-hour
rate programs may be offered.
- Install energy-efficient florescent light bulbs
in light fixtures that you leave on for long periods of time. They
provide four times as much light and last 10 times longer than
incandescent light bulbs.
- Take the heat off your expenses. Enlisting a
professional to perform a home energy audit on your home may identify
ways you can save hundreds of dollars a year on home heating and cooling
costs. Ask a representative of your electric or gas utility companies if
an energy audit can be conducted for free or for a reasonable charge. If
not, ask the representative to refer you to a qualified professional.
- Implement inexpensive ways to cut energy costs,
such as insulating your hot water heater, weather-stripping doors and
windows, and lower the heat at night or when you go to work.
- If you rent your home, your landlord may include utility costs in your monthly rent. If not, discuss home improvement options to keep costs low.
Tone it down
Stop paying more bills than necessary. You may have as many as four phone bills to pay: cell phone, local carrier, long distance carrier, and phone service with Internet access. Whatever the case, you may be paying too much for similar services.
- Consolidate to one carrier if the price is
right.
- Call several phone companies, including
wireless companies, to find an inexpensive calling plan that meets your
needs.
- If you don't make a lot of toll or long
distance calls, then avoid calling plans with flat monthly fees for
those services. There are many competitive pay-by-the-minute options
available.
- Check your phone bill to see if you are paying
for optional calling services you don't use or need.
- If your phone service is wireless, be sure to understand promotions, peak calling periods, area coverage, roaming charges, as well as long distance requirements to avoid paying too much.
Watch it
Cable television can be costly, so simply ask yourself: "Do I really need the premium package right now?"
- Try a basic package or something less than a
premium package. Dropping even one premium channel can lower your
monthly bill.
- Explore satellite television as an option, if
it is available.
- Determine what you are currently spending monthly on cable service and weigh different service options that satisfy your needs and still save you money.
Fix it up
When you own a home, the time will come when you must make repairs. Some quick tips to remember:
- Always select services from among
well-established, licensed contractors who have submitted written,
fixed-price bids for the needed work.
- Do not sign a contract that requires full
payment before satisfactory completion of the work.
- Learn how to make basic home repairs at a local vocational school or community college.
Managing your household budget sets the pace for your journey towards financial control. Start by taking small steps right now to reach your financial goals sooner.
