New Years Day Resolutions that your Pocket Book will love

So, its New Years Day and you’ve made (yet again)  a resolution to reduce your spending and get on track financially.  But where do you start?   Well, the obvious (and usual way) is to start a budget, begin cutting down on the luxuries that you  don’t need (or can’t afford)  and find ways to do life’s everyday essentials in a much more economical way.  But how do you do things more economically? Well, it’s easy.  Take a leaf or two from our Grandmothers book, and do things the good old fashioned way – and your savings will start to really amount to something substantial.  Here’s five easy ways to change some of your ‘spending habits’ that will really impact your pocket book – in a good way.

1.      Curb the Fast Food Addiction

In our Grandmothers generation, fast food didn’t exist.  Fast food to them was something that was either quick to prepare (like scrambled eggs on toast) or readymade in a can – like baked beans or soup.  If they didn’t feel like cooking, they made do with a basic meal prepared quickly from their pantry – and didn’t spend $20 at the drive through or on Chinese restaurant delivery.   Not only is it healthier to prepare a ‘fast’ meal at home instead of spending up big on takeaways or drive though food, but you’ll save a lot of money over the course of a year, especially if you’re a fast food regular.

2.      Take care of your own dirty laundry

Our Grandmothers generation also laundered all of the families clothing – there was no dry-cleaning bill each week, just a bit of elbow grease and a commitment of a few hours of her time to get the family laundry done.  Sure, it’s a chore, but not one that you have to commit to on your own.  Make it a family task, and you even get to spend some fun  time together with your spouse – and your kids – as you sort and fold the laundry. 

3.      Don’t be afraid of wearing hand-me-downs or recycling the clothing dollar

There is no shame in wearing hand-me-downs, or in snapping up bargains from the thrift store.  It’s an economical way to clothe yourself – and your family – and also a way to get your own ‘unique’ style happening.  But if hand-me-downs and thrift stores are not your thing, try selling your old clothes that no longer fit or you no longer wear on eBay or at a Yard Sale, and recycle that clothing dollar.  You can shop at your favorite department store afterwards for new clothes totally guilt free, knowing that the money you spent came from the sale of clothes you no longer wore.

4.      Avoid buying Champagne on a Beer Budget

We’ve all heard the saying ‘you can’t buy champagne on a beer budget’.  Well, have you heard that you can’t buy prime rib on a ground beef budget?  “Recession Cooking” is a well known way to keep your grocery bill down, whilst still serving up tasty food to your family each night, and there are loads of websites and books dedicated to this subject to help you on your way.  Most notably is Erin Chase from 5 Dollar Dinners (www.5dollardinners.com), who achieved sensational success with her website, and subsequently her  book, 5Dollar Dinners.  Yes, it’s true.  You can feed your family for $5 per meal.  That’s less than the price of a Big Mac Value Meal for your entire family!

5.      Rethink your subscriptions

It’s the re-occurring monthly expenses that really add up to a big chunk of your income, and it’s a good idea to regularly revisit whether your expenditure is realistic for your current situations.  Phone Plans are usually something that you can tweak to get a better deal and save some money on your bill each month.  Cable TV plans are also another way to cut down on expenditure – do you really watch any shows on those premium channels that are ‘extras’ on your bill each month?  If not, cancel the channel subscription, and your monthly bill will be much more pleasing to the eye. 

With a little common sense, and some personal commitment to cutting costs, you’ll soon be on your way to cashing in on big savings with a little bit of sacrifice.