Has the constant stream of bad news about the economy got you down? Every time I turn on the television, I find myself greeted with more dire predictions about the state of our country’s finances. While I don’t think you should panic about the current state of the economy, there’s no doubt that you could quickly start to feel powerless to protect your family and its finances. After all, what can we do to fix this fiscal mess?
Well, we can’t solve the mortgage crisis on our own. We also can’t make the car industry profitable. Heck, we can’t even guarantee that gas prices will stay affordable. What we can do, though, is start taking steps to strengthen our own personal finances. By downsizing the unnecessary expenses in our lives, we can build emergency funds that will insulate our families from the effects of this financial turmoil. But what will we downsize?
Cable/Satellite TV – Television subscription services are an easy addition to any list of downsizing moves. Cutting out movie channels, stepping down to a less-expensive tier of channels, or dropping your service altogether can help you save anywhere from $20 to $100 each month. Just imagine what you’ll do with all the extra time and money!
Evenings Out – Entertainment is another simple cut to make when you’re looking to downsize your lifestyle. Instead of eating out once a week, why not cut back to once a month? Likewise, you can rent that new release movie and enjoy it in the comfort of your own home rather than spending almost $10/person to see it in the movie theatre. By reducing the number of times you treat yourself to an evening out you’ll save money and learn to appreciate your special outings even more.
Car – Downsizing your car is a much more drastic change in lifestyle, but it can save you tons if you do it correctly. I probably wouldn’t suggest making changes to your car selection unless you were already in the market for a new (to you) car. If you do happen to be shopping for a car, however, there is a great opportunity to save money as you make your choice. Do you really need that big SUV that seats eight people if there are only four people in your family? A smaller, more gas-efficient, car will cost less money to purchase and to drive.
House – Like the car, changing the place you live isn’t something that should be considered lightly. There are expenses involved in moving that you won’t recoup like security deposits (for renters), finance fees (for homebuyers), and even the actual cost of moving. But, if you’re already looking for a new place to call home, now is the time to think about how much home you really need. Choosing a smaller home will allow you to make a small house (or rent) payment and cost you less to heat and cool.
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I have recently sold my car and also stopped my online DVD subscription. By moving flat I am now paying less rent and no monthly travel. I am also going to change electricity provider and will be downsizing my cable internet. Eating out has been dramatically cut down and I also go to the market for my veggies.
There are a few other things I have my eye on too so all the little things add up.