An unexpected financial trouble can blindside anyone as we recently witness with my reader, “Amy”. It can be a result of unemployment, rising medical cost, rising electricity bills etc. While cutting back and creating a lifestyle according to a low budget can be stressful, it isn’t impossible. Here are some things to cut back spending on when in financial emergency.
1. Utilities
Examine the bills first. Utilities are one of the things that people can’t live without, but steps can be taken to reduce their consumption. Think for the long term. Energy-saving units can significantly reduce bills. Water bills also play a part, and to cut back, you can go for water efficient toilets. Research suggests they can reduce the water consumption by 25%. Find out what you’re paying for monthly which isn’t necessary. Examples include rental movie and gaming subscriptions.
2. Insurance
Whether it’s life, health or auto sr22 insurance, you should compare prices. You don’t need to make dramatic changes. Start by looking around, and you may find a much better deal compared to what you’ve currently paying. Money can also be saved by taking each type of insurance from a single company. Try asking the company to lower your premiums if your credit score has improved.
3. Cable
Cable and satellite TV can be cut out altogether. However, if you think you can’t do without them then look for packages that can cut down your cost. Many services providers now offer a bundle of services (internet, telephone, cable), and buying all services from a single provider can save you money. You can also save by cutting out the subscribed T.V channels. You also have the option to keep favorite channels and still cut back by paying for long-term subscription in advance.
4. Cell phone
Cutting back on a cell phone would seem impossible for many as it’s the quickest way to communicate. If you can’t cut back on the cell phone, you can reduce the expenses. Most carriers offer the latest smartphone at low prices if the customer signs up for a two-year contract. There are hidden costs that come with such plans, and in financial emergency, you would be better off taking a prepaid phone service.
5. Internet
Searching for cable and telephone services may also get you a reasonable internet telephone service. However, other services such as satellite and Wi-Fi are also available. The best way to cut back would be to pay for a few months subscription together in advance, or you can choose the lower priced package with lower GB bandwidth. If you have more than one computer at home, getting a router allow you to use internet on several computers from the same connection.
6. Stop eating out
The expense of eating out can quickly add up over time, particularly if you’re a regular. If you go 4-5 times a month, a realistic goal would be to drop down to 2 eat outs. Individuals with a 9 to 5 job can save a decent sum by taking lunch to work rather than eating out. A report shows that cutting out just one meal per week can save up to $2500 per year. Consider cooking the food in a greater quantity, having the same meal in for lunch and dinner.
By considering cutting back on the things mentioned, you would be saving a lot of budget to address your financial woes.