2019 Project is important because it is a way to share what I’ve learned from clients, credit counseling courses, input from mentors, and even personal experience. To expound a little on last week’s article, I want to go into a little more detail on necessary expenses and ways to save money on the things everyone has and needs to purchase on a monthly basis.  

Necessary expenses and how to reduce your monthly expenses.  

In today’s fast-paced environment, cellphones and internet are now considered necessary expenses, along with food, electricity, and other utilities. But those expenses can be manageable.  

Food is often a big ticket spending item for most households. There are many ways to reduce your spending on food. We all know that eating out, even at fast food places, is convenient, but can add up quickly. Eating at home has many advantages, including being -usually- healthier, and certainly less expensive. For those who work outside the home, taking your lunch each day, as opposed to eating out, would save you an estimated $10-20 per day. Multiply that by five days in a week, and you can save at least $50 per week, saving you at least $2,500 per 50 week work year!  

Snacks and vending machines are also a culprit to zap your food budget. The smaller the portion size in a package, the higher the cost per packing increment (ounce, pound, etc). Buying a family sized bag of potato chips is not much more expensive than a single serve bag of chips from a vending machine. So, buying a large bag and packing a serving in a resealable bag would save considerable amounts each month. Two liter sodas are also a way to save money. Using a thermos or travel cup to take your soda to work, as opposed to a can or a vending machine is also a way to cut expenses. The same principle applies to meats. Buying a four pound package of hamburger meat or a family size package of chicken breasts is much less expensive per pound than buying one pound or one breast at a time. Buying the larger sizes and then repackaging them at home is the smarter way to buy (buying from a warehouse store for those larger/family sizes can save you even more). And, with the larger sizes, you can make more potions at one time, then take the leftovers for lunch the following day. Things like chili, spaghetti, and pot roast are excellent options for slow cookers and can be eaten over several days, saving you cooking time and the urge to order in or take out dinner after a long day of work.  

Cell phones are another major monthly expense for most families. The large cell phone companies are expensive. Try checking the prepaid options at your current provider if you are under contract. If you aren’t under contract, switching to a company such as Cricket Wireless or StraightTalk are excellent options. Those plans run about $50 per month with unlimited talk, texting, and data, while using the big network towers (so the service is about the same). And those options usually allow you to keep your same phone and phone numbers.  

Cable and satellite are not considered necessary for living expenses, but families, especially with children, find such services to be almost mandatory, and for good reason. Now, more than ever, is the time to cut cable and satellite out of your monthly budget. Streaming services are readily available with an internet connection. Fire Sticks, Apple TV and other streaming devices can be purchased for less than the cost of a single month’s cable bill and you own the device. Then, you can stream the channels you enjoy. Some channels are free to stream while others charge a nominal monthly fee. Channels like HBO can be as much as $15 per month. However a subscription service such a Hulu, Netflix, or Amazon can provide lots of viewing options for a fraction of most cable services. Speaking from experience, having hundreds of channels with cable or satellite isn’t necessary and it doesn’t take long to adjust your viewing schedule to shows provided with a streaming service.  

Of course there are ways to cut down on the absolutely necessary expenses, too. Most are tricks that we all know, but just don’t implement into our daily lives. Turning the water off while brushing your teeth, turning lights off when you leave a room, etc., are common knowledge. But, some of us don’t realize that everything that is plugged in uses electricity. So, that cell phone charger on your bedside table is zapping your electricity all day when you are at work. Unplug everything (within reason) with a plug when not in use. The usage might be minimal, but a few dollars a month can add up quickly. LED lightbulbs also are a good investment. The initial cost is higher than a traditional bulb, but the life of the bulb is around 10 years and most use less than half the power than a traditional bulb. Again, the savings are small on a daily basis, but every small amount adds up.  

And, finally, adjusting your thermostat makes a big difference on your monthly electrical bill, too. Just a 2° difference can save you each month, and you might consider a programable thermostat to keep the unit from running as much while everyone is away. But, don’t make the mistake of turning your unit off completely when you’re away. It often takes less power to maintain a consistent temperature, rather than trying to raise or lower the temperature in your home by more than 10°s when you get home. Try adjusting your setting by 3-5 degrees from your normal setting when you’re away. Change your air filters regularly, check the Freon level in the unit, and make sure your air returns are clean and nothing is blocking them. All of this can make a huge difference.  

These are just a few ways to save some money each month on those necessary expenses that we all have. Each “tip” should save you a little every month. Adding those bits together will yield even more savings. Use the savings to build up your emergency fund and then apply the savings to paying off those credit cards!