Budget Cuts - Sacrifice a Little

Some tips to lessen your expenses.

Divide your credit card payments

Instead of paying $200 once a month, pay $100 twice a month. Since the finance charges are based on your average daily balance, you will reduce your monthly finance charge without paying any more than you already do. Dividing your credit card payments requires a bit more involvement than most effortless budget cuts do, but not too much.

Review your phone plans

Do you still use your home telephone or do you just keep it around because you’re accustomed to it? If everyone in your household has a cellular phone, then consider dropping the landline and save yourself the monthly payment.
When is the last time you looked at your cellular plan? I'm not going to tell you to try talk less or watch your minutes (that is painful), but look at your statement or call your company to find out what your average usage is per month. Could you use a less expensive plan based on your monthly average? If you can, make the change and save yourself the extra money.

Disconnect electric devices when not in use

You have probably heard that electronic devices continue to suck energy after you’ve turned them off if you've left them plugged in. You can save a lot of money by unplugging your electronic devices when you are not using them. This does require some effort, but the easiest way to do this is to use power strips, so you can unplug multiple devices with one plug. It might sound like a hassle, but doing it will cut down your power bill substantially. The Organization for Economic Co-operation and Development estimates that standby power accounts for 3% to 4% of residential electricity use.

Buy generic prescriptions and food

If you haven’t started using generic drugs, you need to start right away. You’ll get the same drug for a fraction of the cost. According to the National Association of Chain Drug Stores, the average retail price of a generic prescription drug purchase in 2006 was $32.23, while brand-name drugs went for an average of $111.02. The same idea can be applied to food. Don’t be afraid to buy the knockoff items in your local grocery store. Most of the time, generic food products are produced and packaged at the same facility and just receive different labels. Because off-brand companies typically do not advertise, their production costs are cheaper. These effortless budget cuts could save you upward of 25% on your bill.