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Household Budgeting Tips from our Professional Credit Counselors

Everywhere you look, it seems costs are rising. Gasoline costs more, food is more expensive, and utilities can add a pretty penny to monthly household costs. If you're like many of the visitors to this web site, you may be looking for ways to save money to help balance your budget, pay down debt, and even begin saving.

Typically, what we see at ClearPoint Credit Counseling Solutions are budgets that leave considerable room for cost-cutting improvements. Often, cutting costs requires relatively little effort and few major lifestyle changes. Rather, it's the little things that tend to add up over time. Save a few monthly dollars in several different areas and you'll notice a big difference! So, let's take a look at a few ways to save.

Save Money on Utilities

A portion of your savings opportunities depends on where you live. For example, if you live in a region with particularly cold winters, there are likely savings opportunities related to your heating bill. These might include:

• Turning the heat down at night and using more blankets
• Lowering the whole house heating temperature and using an efficient space heater for the room you're in
• Wearing heavier clothing during the day to help stay warm
• Purchasing a programmable thermostat to help regulate household temperatures more economically
• Using a fireplace or wood-burning stove for some of your heating
• Insulating attics and/or exterior walls
• Sealing airflows around doors and windows
• Installing your storm windows annually, if applicable.

Similarly, savings opportunities often exist in the summer. Consider running fans instead of air conditioners when possible (especially at night when it's cooler).

Other utility saving ideas:

• Save on your water bill by taking quicker showers, reducing your water usage when brushing teeth and washing dishes, refraining from running your dishwasher until it's full, and repairing any leaky toilets or sinks.
• Save on your electric bill by turning lights off when not in use, running air conditioners less, and hanging clothes to dry sometimes instead of using the dryer.
• Lower your electric or gas bill by turning water heater temperatures down a bit.
• We've written other entire articles on ways to save money on your phone bill. Make sure to browse our web site for further ideas in that area.

Save Money on Food and Prescriptions

Do you ever take name-brand pain killers? In most cases, grocery and drug stores have generic brands of these. Take a look at the active ingredient and compare with your name brand. What you'll see is that the active chemical is exactly the same in both kinds. In other words, you're paying more for name brands but receiving the same thing.

This concept holds true for many grocery items. Check to see what store brands exist for all of the things you buy regularly. Give them a try, as you might find they taste similar to what you're used to yet cost less than the brands you usually buy.

Other important tips include:

1. Clip coupons. There are many good sources of coupons: Sunday papers, other newspapers, "junk mail," telephone books, magazines, etc. Many overlook this simple way to save regularly with relatively little effort. Also take advantage of grocery store loyalty cards and look out for specials and other sales.
2. Eat out less. In most cases, it's cheaper to eat at home than at a restaurant. Keep this in mind as well for social visits; economical potluck dinners can be just as much, if not more, enjoyable than eating out.
3. When preparing foods, make enough so that you'll have leftovers (which will save you additional time and money).
4. Plan a menu before heading to the store. And stick to your list!
5. Finally, never shop while hungry! You'll almost certainly buy more than you need.

Save Money on Entertainment

Think about lower cost alternatives to the types of entertainment outings you're used to doing with family and friends. For example:

• Instead of seeing first-run movies, see if there is a "dollar show" in your area. Or simply rent movies and take turns watching them at friends' homes.
• Look into free or cheap activities in your area. Most cities have web sites or news groups devoted to spreading the word about free events about town.

Other Savings Tips

• Consider second-hand shops or discount / outlet stores for clothing.
• Take public transportation to save on gas and parking.
• Pay down your credit cards as quickly as possible. The faster you pay down your balances, the less you'll incur in interest and the more money you'll free up for other expenses or for your savings. Remember to pay more than the minimum balance when possible.
• Involve your whole family in the process of brainstorming for ways to save money. Discuss your financial situation with them and explain the importance of financial responsibility. You might also try enticing everyone with a reward for meeting savings goals - something like a special dinner or other fun outing.

The above ideas are only a few major points to get you into the right frame of mind. When you're doing this for yourself, consider your individual circumstances and think as creatively as you can about ways to reduce expenses.

If you're having trouble with debt or household budgeting, give us a call at ClearPoint Credit Counseling Solutions, a nonprofit organization that has helped more than a million people and families with these specific issues. Our professional credit counselors can interview you in-depth and offer advice and, if appropriate, discuss debt management programs.