Sometimes people in a booming economy are used to spending money that they don't have. Living on credit cards, racking up debt. Sometimes, once the economy turns down, it is hard to get back on track and start living within your means.
Here are some of the common things that I see, as a CPA, in people's expenses that are easy ways to turn down your expenses:
1) Check your insurances. Their may be the same coverage, with an equally good company, for cheaper.
2) Install the energy efficient light bulbs in your home. A bit of cost up front, but TONS of savings on your electric bill.
3) Change your "standard" temperature in your home (up or down a few degrees can make a ton of difference)
4) Look at your spending habits. For 2 weeks, write down EVERYTHING that you spent money on (kind of like being on a diet for your wallet!). How many times di you REALLY go to Starbucks? Could a coffee from home save you some $?
5) Write out a list of the following 3 items: Mandatory expenses (mortgage, Groceries, savings); Flexible Spending (Cable); "Fun" Spending (Dining Out, Massages). Categorize all of the items that you spend into one of those three categories. What can you cut? What is Mandatory? Does your monthly take home cover at LEAST the mandatory? If not, where can you cut? If so, go down the list from Mandatory to Fun and pick which ones you want to keep!
If you need any help creating a budget for yourself, or some additional tips, please don't hesitate to email me! I would be happy to help!
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