What Can You Downsize to Save Money?

Downsizing is becoming a prevalent theme on the nightly news programs lately. Each evening seems to bring stories of large companies downsizing in an effort to stave off economic problems. Although no one wants to hear about layoffs and business closings, these companies are making sacrifices to ensure the financial security of the entire company.

By following the example of the corporate world, families may find financial relief by downsizing their lives. Downsizing in different parts of their day-to-day routines can help keep families afloat in these turbulent financial waters, whether the families are planning ahead for future financial storms or struggling to deal with a current financial tidal wave. In either case, making a few sacrifices is better than having someone else decide which things you can live without.

Downsizing allows you to choose your own sacrifices. Depending upon the direness of your family’s situation, you may choose to make huge sacrifices or small ones. Take a look at these places where you might find room to downsize:

Starbucks and Other Guilty Pleasures: Expensive treats like your double mocha cappuccino should be just that: treats. Skip daily visits to Krispy Kreme or Starbucks. Instead, learn to splurge for these tasty delights once in a while. You’ll save money and appreciate the extravagancy more when indulge in it.

Cable or Satellite Television: This is the perfect way to save money. Cancelling your cable or satellite subscription allows you to save anywhere from $20 to $150 each month (depending upon your service) and gives you more time to spend with your family. If, however, you feel like you simply must have your favorite cable television show, you can choose to downgrade your service. Dropping one or two movie channels can save you over $100 each month.

Transportation Costs: As fuel costs go out of control, transportation costs seem to be taking a bigger chunk out of family budgets. Get your costs back under control by changing how you get around. If you live in a metropolitan area, you could trade in your keys for a bus pass. Organizing a car pool is another great way to rein these costs in. For a more drastic change, you might even consider selling your gas-guzzling vehicle for a more economical one. Just make sure that you’ve considered all of the costs of this change before you spend more money that you’ll save.

Living Expenses: Even big-ticket expenses like a mortgage payment or a rent payment can be downsized during touch economic times. If you live in an apartment, you can move to a smaller one at the end of your lease. Homeowners can, likewise, sell their homes to purchase a smaller one that is less expensive and more economical to heat and cool. If moving just sounds too drastic, you may find it more palatable to take on a roommate. You’ll get to keep your home, but have someone to share expenses with.

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