Talking About Money & Saving – Part Two

Spending money intelligently

Fixed expenditures

Mortgages can easily be the biggest single expense most families have in their monthly budget. Here, is to find the best deal with the bank, is where the trick lies. Calculated comparisons can make a difference of few thousand dollars in the entire deal.

Credit Cards should be used very carefully and with a lot of discipline. Always pay before the due date to avoid late payment fees. Make a repayment strategy, as soon as possible.

Make a repayment strategy, as soon as possible.

Variable expenditures

VEHICLE – Another big expense that you need to put attention, is linked with the vehicle(s) you own. You should see if you have the best deal on the maintenance, insurance and repairs.

FOOD – True, food is a need as well as a recurring expense. Keeping a check over the money spend on food – to a necessary extend – can make a big difference in the money you could save, at the end of the month. Plan food purchases in advance, go for generics or store brands and stock up the items that you regularly use when available on sale.

CLOTHS – Another expenditure that drains a lot of money is one’s fascination for clothes. Unlike electronic goods, the price of clothes is continuously on an upward spiral. Hence it is a good idea to buy quality clothes that lasts a longer period. Such clothes are better than the “buy and throw away” types. The cost of clothes is not going to come down either. Therefore, buying in advance for a season ahead is a logical correct step. But never overdo it. Getting clothes for 5 years in advance is pointless.

TELEPHONE – is a common thing in every household. This is one department where money drains like an open tap.

Shop around to find out the best deal, as far as the service provider is concerned. Use free call applications for long distance calls.

Keep in mind, a saving of $20.00 a month can add up to $240 a year.

TRAVEL – If you are a travel addict, travel expenses can make a big difference if not having the right travel agent. Even if it is the same place, airline, hotel or car rental, the difference between two travellers can easily exceed $1000. Keep your eyes and ears open when hunting for a travel deal.

Remember, saving money is not putting all the dollars that you earn in your savings account. But it is all about intelligently spending the bucks, at the same keeping a check on all the unnecessary expenses.

Good Luck : )!