Feb 23 2009
Is The Economy Changing Your Spending?
What are you cutting back on to save money?
In this economy and the downward spiral of the job market, many are making big and small changes to their daily routines and household expenses.
What are you changing?
I have already changed both my health and car insurance to lower my monthly premium. There alone I have cut out over $250 a month.
Many are eliminating their daily latte, eating out much less, getting their hair cut less frequently, doing their nails at home among other small changes to ease the strain from this economy.
photo credit: news.ft.com
We may cut out the movie channels from our cable subscription. We don’t watch them that often and if it saves a few dollars a week it might be well worth the change.
My current project is changing my cell phone plan.
I have not been under a contract for over a year so I have been on the plan I elected 3 years ago. The plan was a special deal they had going, nothing like the plans they have now. I have 1500 anytime minutes. I don’t use even close to that.
I also have a texting plan that costs $5 a month. I don’t text all that often either.
I can save over $10 a month by cutting out the texting plan and changing my plan to one with fewer minutes. If I need to text someone, it costs $0.15. For the rare instance that I actually use this feature, that small amount is better than $5.
I am trying to get my step-dad to cut his Starbucks habit. He spends $60 a month on coffee. It’s plain old coffee, not a fancy latte or anything he couldn’t make at home. Some habits are hard to break.
All these little changes add up. Until the economy changes, there are just some sacrifices we have to make.
Some may think that cutting back on luxuries means you are in financial trouble, but it doesn’t. Not for everyone. It may, however, be what saves you from a financial disaster. With the current instability of the economy and job market, making a budget and cutting back on things you don’t really need in order to save money might just be the smartest thing you could do.
photo credit: kpth.com
Are you making changes to save money?
Angi, I feel like it is the living above our means mentality that has created a lot of the mess we are in, so yes, personal responsibility is key.
We’ve been practicing frugal spending for a while now, so the economy hasn’t really effected us too much. Some of the biggest changes we made a while back was eliminating cable and frequent trips to the movies. Instead, we enjoy Netflix and Monday night Redbox freebies.
Davida
There really isn’t much that I can cut back on. I don’t have cable, I cut my landline and only use my cell, don’t do lattes.:) But I am always looking for ways to save money on the things I can’t cut out. It has nothing to do with the economy for me though, it’s a way of life.
Yes, I’m more careful about spending now, and I’ve switched from some of my favorite brands of laundry detergent, coffee and other household items to less expensive ones.
Yes, I have done the same. For most things. Some things are just gross if they are an off brand.
I buy what is on sale or with a coupon, depending on what is cheapest.