Week 2 – Cut back on spending

Hi there! Welcome to week 2 of the financial wellness challenges! This weeks challenge is to cut back on spending.

Last week, part of your financial wellness challenges was to make a budget. It could be as general as writing down your income and broad classifications of bills or you could have decided to get very specific with each expense you have. Maybe you chose somewhere in between! I hope this worked for you and gave you a blueprint for your finances. Creating a budget is always a good first step for financial wellness.

This week’s challenge will put you into action to save a little more by showing you some of the things you are spending money on that you may not have realized you were purchasing.  

Week 2: November 16- November 22

Financial Wellness Challenges – Activity for this week:

Cut back on spending –  Extra expenses

Cutting back on items that aren’t needed is a great way to save some money and/or for something special for you or the family.

Do you really need the daily morning venti (try grande!) latte or the 20 extra cable channels you never watch? Think about things you may not need and see what you can cut out. Try writing down your expenses each day; especially ones that occur while going to work, at work, and on your way home from work. The little items you buy and don’t think about may really add up over time.

Here are some examples of things you may be able to cut back on:

Cut back on spending – Little expenses:

Keep track of the expenses, you may be surprised!

Are you in the habit of buying a coffee (or similar drink) every day?  

Do you go out for lunch every day?  

Do you buy gum or treats each time you fill-up with gas?

Answered yes?

Try this to start the cut back on spending

1. 1.  Order a small compared to a large.
   2.  Limit eating out for lunch to 1-3 times less than you do now.
   3.  Limit yourself to one treat with each gas fill up.
      

If you add all these expenses into your weekly budget, I’m sure you’d be surprised at how much you are spending and how much you can save by cutting back. 

Television Services: 

Cable and satellite services are competitive, which could mean savings for you!

• Check-in with your service provider occasionally to find any discount or new customer packages offered. 
• Bargain with your provider, if they don’t budge, check out a new provider and switch if necessary or threaten your current company with switching and you may get a discount. 
• Downgrading to a lower package can also be a way to save, especially if you don’t use all your current channels. 
• Bundling services for television, internet service, and phone may also be a saving for you.

Cell phone vs Landline:

Many people only use cell phones now which saves them the expense of having both a cell phone and landline. Landlines are not that common anymore but if they are needed, perhaps you can add the landline into a service bundle. Also, opt to scan and email documents, using a cell phone/printer/internet, instead of faxing them through a landline you don’t necessarily need. 

Cell phones only:

It’s easy to get excited about buying the newest cell phone, but consider the following before you buy a new phone:

1. What is wrong with the current one?
2. Having problems with your service or service provider?
3. Are there any hidden fees for getting a new phone?
4. Are you using all of the data on the plan? Is there a cheaper plan you can sign up for that will meet your needs?
5. How much will your payments go up?
6. Will a prepaid phone work just as well for your needs?

Insurance:

We pay insurance for everything, it seems.

Have you checked your auto insurance to see if there any discounts you qualify for?  

Do you still need to have full coverage on your car or is it time to reduce it? 

Are you able to bundle your auto insurance with your home and life insurance? This may be more cost-effective for you. 

Does your health insurance meet your needs? Base your insurance plan on medical necessities for you and your family to get the most for your money.

Insurance can be a complicated thing to manage, talking to your agent will help you get a better understanding and a more cost-effective plan for your needs.

Rewards:

Most credit cards offer monthly reward points on top of the initial offer that attracted you. Make sure you take advantage of these deals and sign up for the monthly rewards for items you need to buy. This helps you accumulate reward points, which in turn can give you money back and help you pay off the credit card quicker.

I hope these tips help you find ways to cut out unnecessary expenses. Stay tuned for next week’s challenge to practice another way to save!