[Edited 4/10/11 8:32am]

2elijah said:

First Person: How We Cut Our Monthly Spending by $500

Thought this was good info to share for those finding ways to cut down on spending.

http://finance.yahoo.com/...2.html?x=0

Brian C. Hopkins, On Thursday April 7, 2011, 6:22 pm EDT

*Note: This was written by a Yahoo! contributor. Do you have a personal finance story that you'd like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.

Just like at millions of other households in America, the Great Recession hit my home like a runaway train. A few years ago, I sold a small business and took a job as the national credit manager for a franchised business. My better half was working for a marketing firm, and I still was a landlord for a few investment properties. We were living a good life, and then almost overnight we were both unemployed. I was selling off properties and barely making enough to cover the mortgages. Unable to land new jobs and drawing two unemployment checks, we decided that we had to cut costs before they dried up our savings. Our cost-cutting session started with a walk around the house. We found areas where we could cut costs. We trimmed about $500 per month by focusing on just five things.

Cable TV -- saved $125

I had never been happy with our local service provider and the lack of customer service. I was even less thrilled by the $165 monthly bill that would inexplicably change by $3 to $5 each billing cycle. I called around and discovered that I could get satellite TV for $40 per month. This was a savings of $125.

Landline -- saved $90

As we continued walking through our home looking for things that could be reduced or eliminated, we kept passing by that relic on the wall known as a landline. I didn't even think of it because everyone we knew called us on our cellphones. We were paying $90 a month for something that we almost never used. It had to go.

Cellphones -- saved $165

While in awe of how we were throwing money away on our useless landline, our attention turned to our faithful cellphones. It never dawned on us that we were paying an outrageous $265 per month for our two phones. We called our service providers, and they offered us a consolidated plan for around $190. I called a prepaid cellphone provider and found that it covered all the major cities that we traveled to, and it would provide unlimited everything for a combined $100. This was a savings of $165.

Auto insurance -- saved $40

While watching our overpriced cable TV, I saw a commercial. Maybe you've seen it. There's a little lizard claiming that he could save you a ton of money on car insurance. Not believing this, I called. The company said it could provide me with the exact same coverage for half the $80 per month that I was paying. I signed up and promptly told my previous insurance provider that I no longer needed his services. He offered to drop my rate to $55. I canceled anyway and pocketed $40 in savings.

Homeowner insurance -- saved $83

After the phone call about my auto insurance, I checked my homeowner insurance. I reviewed my policy and called a competitor and then another followed by another. I became extremely irritated. I was paying around $1,800 a year for my policy. Every single company I called not only would save me at least $800, they would also include coverage options that I didn't have. In the end, I got a much better policy and saved about $1,000.

2elijah said:

First Person: How We Cut Our Monthly Spending by $500

Thought this was good info to share for those finding ways to cut down on spending.

http://finance.yahoo.com/...2.html?x=0

Brian C. Hopkins, On Thursday April 7, 2011, 6:22 pm EDT

*Note: This was written by a Yahoo! contributor. Do you have a personal finance story that you'd like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.

Just like at millions of other households in America, the Great Recession hit my home like a runaway train. A few years ago, I sold a small business and took a job as the national credit manager for a franchised business. My better half was working for a marketing firm, and I still was a landlord for a few investment properties. We were living a good life, and then almost overnight we were both unemployed. I was selling off properties and barely making enough to cover the mortgages. Unable to land new jobs and drawing two unemployment checks, we decided that we had to cut costs before they dried up our savings. Our cost-cutting session started with a walk around the house. We found areas where we could cut costs. We trimmed about $500 per month by focusing on just five things.

Cable TV -- saved $125

I had never been happy with our local service provider and the lack of customer service. I was even less thrilled by the $165 monthly bill that would inexplicably change by $3 to $5 each billing cycle. I called around and discovered that I could get satellite TV for $40 per month. This was a savings of $125.

Landline -- saved $90

As we continued walking through our home looking for things that could be reduced or eliminated, we kept passing by that relic on the wall known as a landline. I didn't even think of it because everyone we knew called us on our cellphones. We were paying $90 a month for something that we almost never used. It had to go.

Cellphones -- saved $165

While in awe of how we were throwing money away on our useless landline, our attention turned to our faithful cellphones. It never dawned on us that we were paying an outrageous $265 per month for our two phones. We called our service providers, and they offered us a consolidated plan for around $190. I called a prepaid cellphone provider and found that it covered all the major cities that we traveled to, and it would provide unlimited everything for a combined $100. This was a savings of $165.

Auto insurance -- saved $40

While watching our overpriced cable TV, I saw a commercial. Maybe you've seen it. There's a little lizard claiming that he could save you a ton of money on car insurance. Not believing this, I called. The company said it could provide me with the exact same coverage for half the $80 per month that I was paying. I signed up and promptly told my previous insurance provider that I no longer needed his services. He offered to drop my rate to $55. I canceled anyway and pocketed $40 in savings.

Homeowner insurance -- saved $83

After the phone call about my auto insurance, I checked my homeowner insurance. I reviewed my policy and called a competitor and then another followed by another. I became extremely irritated. I was paying around $1,800 a year for my policy. Every single company I called not only would save me at least $800, they would also include coverage options that I didn't have. In the end, I got a much better policy and saved about $1,000.

If people looked at their day-to-day lives more critically, I bet thousands of dollars in discretionary spending could be freed up and personal savings could really take off. I'll say it again: The stuff you own owns you. We should choose our masters more wisely.

Lammastide said:

2elijah said:

First Person: How We Cut Our Monthly Spending by $500

Thought this was good info to share for those finding ways to cut down on spending.

If people looked at their day-to-day lives more critically, I bet thousands of dollars in discretionary spending could be freed up and personal savings could really take off. I'll say it again: The stuff you own owns you. We should choose our masters more wisely.

Zactly. I am shocked and amazed at the percentage of people who are not saving properly for their retirement. To say they are going to be sorry is a huge, huge understatement.

This is a very good article and something we did when I got laid off last year. The only reason we hand a landline was because I had dial up at the time. We live in the country, what can I say? I checked with our cell phone company and was able to get an air card cheaper than what the landline cost us each month. Needless, to say I got rid of the dial up service and the landline which saved us $20 per month. It doesn't sound like much but if you add that up over a years time..I put this money in a Christmas fund so I didn't put anything on credit cards for Christmas shopping last year

The cell phone thing we did a few years ago. I finally went over the bill with a fine tooth comb. We also both used to smoke but quit almost two years ago. That saved us $400 per month and smokes are way more expensive now. We put that money in our savings each month instead. We now have a good nest egg which is a good thing. We need a new roof this year so we don't have to worry about covering that cost either.

I was worried when I got laid off on how we were going to get by financially. We are actually better off now because we have cut down expenses.

Now, if we could just figure out how to lower gas prices

Michelesky said:

The only reason we hand a landline was because I had dial up at the time.

The main reason that I have a landline is for the home security system.

That should've been the first thing on the agenda but I agree with this. Money is too much. And they make it worse on themselves upping the price amount knowing some folks can't afford that much for simple cable.

hmmmm... there are major points forgotten in this article:

-GROW YOUR OWN FOOD! if you cannot, there must be someone in your community who does. CONNECT WITH YOUR COMMUNITY.

-buy in bulk, if you have access to a market which has this as an option.

-ride a bicycle, or take public transport, again, if you are physically able to do so.

-rent. if you 'own' a home you don't really own it, since the governement gets all your money.

-cook at home. find a community of people to cook with.

-buy local.

-handmake your stuff.

-do trades.

-thrift shop.

-handwash your clothes.

-insulate your home.

-ask neighbors/house-mates to watch the children.

-do thinngs that don't require electricity.

-etc., etc.

[Edited 4/9/11 23:04pm]

Timmy84 said:

That should've been the first thing on the agenda but I agree with this. Money is too much. And they make it worse on themselves upping the price amount knowing some folks can't afford that much for simple cable.

nah... they know what they're doing... it's called supply and demand. it's the first rule of corporatism. the same thing happened with OPEC. those nationed jacked up the price of oil because they knew the west needed it, but they didn't wanna be taken hostage by the west. it's like AT&T holding congress hostage, making net neutrality vulnerable.

MJJstudent said:

Timmy84 said:

That should've been the first thing on the agenda but I agree with this. Money is too much. And they make it worse on themselves upping the price amount knowing some folks can't afford that much for simple cable.

nah... they know what they're doing... it's called supply and demand. it's the first rule of corporatism. the same thing happened with OPEC. those nationed jacked up the price of oil because they knew the west needed it, but they didn't wanna be taken hostage by the west. it's like AT&T holding congress hostage, making net neutrality vulnerable.

Oh but of course. The government sucks anyway lol

Good article and advice. I also did this before and find ways to cut unnecessary things.

Also you can make your own cleaning products from vinegar and baking soda which is much cheaper than commercial products. Buy on sale and what you need.

[Edited 4/10/11 15:58pm]

Ace said:

Lammastide said:

If people looked at their day-to-day lives more critically, I bet thousands of dollars in discretionary spending could be freed up and personal savings could really take off. I'll say it again: The stuff you own owns you. We should choose our masters more wisely.

Zactly. I am shocked and amazed at the percentage of people who are not saving properly for their retirement. To say they are going to be sorry is a huge, huge understatement.

So, so true. We hear so often the statistics regarding people who barely scrape by living month to month, and I think that is such a dangerous, reckless high-wire act. Leaving aside the truly poor, it just shouldn’t be necessary. Have a plan. Have a budget and live by it. If your monthly expenses are the same as your income, then either get more income or cut your costs because the way you are living may have catastrophic results.

That article provides good examples of how savings can be found, but I think there are even easier answers. In the past twelve months I’ve saved 66.22% of my net income (I track it closely – I’ve come in around that % for the last four years, though this year is a little worse because my computer blew up ), and it’s not particularly hard for me to do. No cable TV, no car, a very modest apartment and a small allowance for and constant review of my discretionary expenses. If I go over my budget for discretionary expenses or if I have unexpected emergency expenses, then I make sure I cut back on my spending until I’m back within the percent allotted.

I’ve taken my commitment to saving to a fair extreme, and I know few people would live the life I do (I have specific objectives I’m trying to achieve), but I can’t find much sympathy for those that won’t make the rational decisions they need to make to ensure they at least have some financial buffer in their life.

[Edited 4/10/11 4:47am]

We too have done most of the things on that list!

we have also downsized on our car... I had a larger car and the payment was 480.00... we traded it in, got cash for it cuz the trade in value was far more than what I had left on the loan, and are now leasing a brand new 2011 ford focus... I also work at a ford dealership so I got the D plan as well... My payments are now 250.00 a month..

We are pretty proud of ourselves... this is the ONLY debt I owe to anyone!

good tips! we haven't had cable tv for two years now. i don't use a cell phone very often at all, mostly because i hate talking on the phone and i did just fine all my life without one. i have a cell phone that you buy phone cards for, and i only buy a card when i need to travel out of town. we're also moving this summer to a place where we will be saving around $900 per month on rent.

I've done that for insurance, but also have no cell phone, and no tv service at all

Michelesky said:

This is a very good article and something we did when I got laid off last year. The only reason we hand a landline was because I had dial up at the time. We live in the country, what can I say? I checked with our cell phone company and was able to get an air card cheaper than what the landline cost us each month. Needless, to say I got rid of the dial up service and the landline which saved us $20 per month. It doesn't sound like much but if you add that up over a years time..I put this money in a Christmas fund so I didn't put anything on credit cards for Christmas shopping last year

The cell phone thing we did a few years ago. I finally went over the bill with a fine tooth comb. We also both used to smoke but quit almost two years ago. That saved us $400 per month and smokes are way more expensive now. We put that money in our savings each month instead. We now have a good nest egg which is a good thing. We need a new roof this year so we don't have to worry about covering that cost either.

I was worried when I got laid off on how we were going to get by financially. We are actually better off now because we have cut down expenses.

Now, if we could just figure out how to lower gas prices

I hear you. I got rid of my landline phone 2 years ago. I have a regular cell, and I keep a prepaid one, which I never really use, for emergency, in case I lose my regular cell phone. Some parents may want to keep their landline if they have kids at home though. I don't so I'm okay with that for now.

Another thing I find totally ridiculous, is my cable bill. It is attached to my internet service. I reduced the bill last year, only for the cable company to increase it damn near $40.00 this year. Now my cable is back up to $188.00. My co-worker and I have been discussing ways to cut our bill for sometime now, and I'm working on cutting it down. I don't think there is a satellite cable company in my community, because my building management won't allow us to use satellite dishes, so I'm working on ways to cut some programs.

I was also told by my electric company, that it's best to unplug tvs, computers, airconditioners, when you're not home or during sleeping hours, because when left plugged-in, they're still pulling electricity, even when they are turned off (i.e. tv sets). I was also told that those air-freshener plug-ins add to the bill too, so the old fashioned, stick-ups or table-top air fresheners, sprays are best to use, if you want to cut down on your electrical power use.

It's bad enough food prices have been skyrocketing, so it's good to look around the house and see what it is your life could do without right now. I even put off buying new furniture for now, until things get a little better financially for me right now.

Yes! The landline. We don't use ours anymore, though we still pay $5 equivalent per month even though it's not even connected to a phone.

We've had to cut our expenses quite a bit, after last year was a bit of a struggle and we weren't being very disciplined, living as before but having less money and it not going as far, in denial that we needed to change. We just dropped some cable channels, stopped using the landline, ate out a bit less, went out less in general for drinks or whatever, looked in cheaper stores for basic t-shirts and stuff, ate more Thai food locally and bought less imported foreign stuff, and soon our monthly budget was down by, lemme work it out, about 25%.

I have cable TV-but basic only. (15 bucks a month)

Only use pre-paid cell phone. I use it for long distance and regular phone usage when out and about. But I keep the conversation short-unless I'm doing one of my long distance calls. (So my cell service costs me about 25 bucks a month).

I have a land line w/no long distance for an alarm and for local calls.

The only place I can truly save is my clothing allowance.