Practical Cost Decrease Strategies for You

2008-10-15 15:18:27

( Financial )



The Ballooning Cost of Living

Economic instability and ever-increasing world population have been responsible for the steady high price levels of oil, electricity, and even basic commodities.

It's high time to figure out ways to effect household cost decreases and yet be able to enjoy a decent quality of life. There are actually a lot of effective measures which can maximize your purchasing power despite these difficult times.

Window Shop Less, and Use Only Cash

Bad borrowing habits of Americans are one of the main reasons for the huge volume of subprime mortgages, which then led to the recent financial crisis in the credit market. One of the most widely used instruments of debt is the credit card which also charges the highest annual interest rates.

Limiting yourself to cash purchases will avoid incurring credit card liabilities that may become uncontrollable in the future. Using cash or checks will also give you more discipline in your spending habits and in preventing impulse purchases.

Buy Only as Needed

Most shoppers tend to buy more groceries than what they can actually consume, and excesses usually end up in the trash can. You can avoid this by making a list of items you actually need. Buy only moderate and manageable quantities that you will surely use up. Avoid sale events and other lures of cost decreases, unless you really need the product.

Recycle old shopping bags, packaging materials, bottles, canisters, and paper. Use these in your art or home improvement projects instead of buying new materials from craft stores.

Luxury items like jewelry, perfume, and even gourmet ice cream have no beneficial effect on your health. Substitute them with cheaper but more useful products, and you will achieve a healthier bank balance as well as decrease cholesterol levels.

Watch Your Utility Bills

Utilities comprise a large percentage of your home expenses. Leaving the garage light on while you are gone during the day increases your monthly bills by 10-20% for nothing.

Even when you turn off your appliances, those little light indicators in your stereo, computer, and DVD player do consume some amounts of electricity. It is better to unplug the appliances after use.

Using a powerful electric fan instead of a room or central airconditioner will also result in tremendous cost decreases.

For your daily meals, use recipes that have simple procedures and fast cooking methods to save on natural gas. Resort to stir-frying, boiling, microwaving or even outdoor grilling instead of oven-baking.

Plan Your Car Trips

Make a daily driving route plan for you and your family members. Carpooling with your neighbor to work will also help save on fuel.

If the neighborhood store is only a few blocks away, consider walking, biking or skating to get there. You not only save on fuel but also give your body that much needed exercise.


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