Saving For the Average Person: Yes You Can

I often hear from people that they can not save money because they don’t have enough money to start with. This makes me cringe every time. There is always a way to save money, you just have to want it bad enough.

The first and most important thing you have to do is to write down everything you spend money on. From your rent or mortgage to your car payment to a cup of coffee. All of it has to be accounted for. Next you need to take stock of what you want versus what you need.

Sure you may want 200 cable channels, but the reality is you don’t need it. Just dropping down to basic service from premium can cut $50-$100 a month on your bill. I had a hard time giving up HBO, but we bit the bullet and honestly we don’t miss it at all. I had a little anxiety about missing the last season of the Sopranos, but I know it will be on DVD and I can rent it. Savings: $600-$1200 a year!

Now someone will say I only have basic cable and I am still broke! Well, then you have to keep looking at the other areas of your life.

Do you have a cell phone? Do you really need 1,000 minutes a month and do you need to pay for your teen’s cells when they have part time jobs? NO. Cut your plan down to bare basics, cut texting, internet, etc on your phone and tell the kids they have to pay their own way. You can save a bundle this way. Yes, you really can live with out the extras, remember when no one had a cell phone and we were all ok? My dad cut my brothers off his cell plan since they both have jobs, he cut his minutes from 1400 to 200 and now pays $35 a month instead of $200! Savings: $165 a month or $1980 a year!!

Food is a huge drainer of money. If you are eating out at all STOP. It is not cheaper to eat out no matter what anyone says. If you are reading this you have internet, go to any search engine and type in cheap recipes, or easy recipes. It may take a bit of digging, but there are cheap, easy things you can cook that everyone likes. Stretch recipes by adding beans instead of more meat; Or go meatless twice a week. Spaghetti and a chunky sauce with garlic bread is dirt cheap with out ground beef.

Cook in bulk and freeze the extras for quick last minute meals that can be warmed in the microwave. Always shop with a carefully made list and cut out anything you don’t NEED. Sure the kids like ice cream sandwiches and brand name cereal, but they aren’t paying for it you are! On that note, don’t take kids shopping if you can avoid it. Kids are money burners!!

I feed a family of 3 for $50-$75 a week. And no one is hungry. I rarely buy anything pre-made or overly packaged. Shop bottom shelves as those prices are cheaper. Watch local flyers for sales on things you can stock up on and only use coupons for what you are buying anyway! Just because you have a coupon for Twinkies does not mean you should buy them!

Another huge sucker of money is utilities. If you have cell phones with long distance, cut your home long distance and drop to a basic incoming calls only with internet if you have DSL. If you still have dial up you can still get a lower phone bill. Just call your server and ask for a better plan. Drop call waiting, 3 way calling, etc. You don’t need it. I did this and dropped our bill from $120 a month to $35 a month. Savings: $85 a month or $1,020 a year!

Put plastic on your windows in the winter and use weather stripping around doors. Get on the budget plan for your gas and electric so you have the same bill every month with adjustments every 3 months. We went from $400 a month for gas in the winter to $140. In the summer it drops to $75 a month.

There are ways to cut money you just have to want to. If you have done all this and are living truly bare bones than you need to consider moving to a cheaper home or giving up that newer car for used. Or maybe taking in a boarder or bartering out services for things you need. My mom and her husband are painting an other house that their landlord owns and in exchange they get a month free rent!

Also make sure you cancel auto payments for things you don't use anymore like gym memberships, magazine subscriptions, etc.

Next week I will give you ideas for supplementing your income.

Mandi Gordon: Money Correspondent

Mandi's column, Saving for the Average Person, published every Thursday to Gather Essentials: Money is the average persons guide to saving money on any average day.

Mandi lives in Northern Illinois with her husband Bill and daughter Beth. She enjoys saving money and sharing that knowledge with others. She knows there is enough confusing money info out there- it's time to start understanding and saving!

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