Household Budgets During Tough Times

With grocery prices and energy costs on the rise, consumers are seeing less and less of their hard earned money. If you commute to work or school, you’re no doubt pouring more money than ever into your gas tank. If you eat out often, you’re no doubt finding those costs increasing as well.

Of course, this is nothing new. Rising costs and falling value are the hallmarks of inflation, a reality in today’s world. The problem many consumers face is dealing with annual inflation, especially for those with an income that isn’t quite keeping up with rising costs.

While finding a better job or source of increased revenue should be a thought on your radar screen, there are things you can do right now to start taking hold of your finances.

If you’re looking for ways to stretch your dollar, or would simply like to find ways to tighten your household budget, the counselors at our consumer credit counseling service (CCCS) agency have put some suggestions together to help. There are always ways to adjust and improve a household budget.

Start with Your Family

Our first suggestion is to have you ask your family for ideas. Let them know you’re looking for ways to save money and they’ll likely come up with suggestions.

Groceries and Restaurants

For families, restaurants can be a major drain on a household budget. Sure, they’re convenient and enjoyable, but sometimes you have to ask yourself whether it makes financial sense to keep spending at the level you’re used to spending.

In short, try cooking at home more often to save money. When planning your meals, prepare a menu to take to the grocery store so you’re not tempted to overspend there. Don’t forget to clip coupons and take advantage of other specials offered by your store.

Another grocery store tip is to buy store brands of foods and other items when offered. Also look out for bulk savings opportunities on regular items like toilet paper and paper towels.

Cooking at home can also help save you money on entertainment. Instead of meeting friends for dinner, invite them over for potluck meals. And make a point of regularly cooking extra portions so you’ll have leftovers for lunches and quick dinners later in the week.

Entertainment

Once you’ve cut back on restaurants, take a look at other luxuries that tend to appear in your monthly expenses. For example, do you go to the movies a lot? If so, could you make a point to only see matinee showings, or wait until the movies you want to see are released on video?

Videos and DVDs are great entertainment options for families because you have just one rental cost, and yet everyone gets to watch. You may find that, by doing this, you’ll even have enough money for snacks and beverages while still saving money over your usual expense.

You may also be surprised at the number of low-cost activities available. Check into museums, libraries, free concerts, parks, trails, etc.

Lower Your Monthly Utility Bills

Your mother always told you not to let the water run while brushing, right? How about turning off the lights as you leave a room? These are great pieces of basic advice that result in real savings. Here are a few more:

• Bundle up in the winter. It’s much cheaper to wear a few extra layers during the cold months than it is to heat your entire home to a toasty temperature. This is especially true at night, when you can pile on extra blankets. A programmable thermostat is a worthwhile investment to help regulate your environment continually and economically.
• Enjoy a breeze in the summer. Fans are cheaper to operate than air conditioners. (As with the previous bullet point, we’re not suggesting you should endure extreme heat or cold. Rather, just use your common sense. If it’s possible to cut back on major energy-using appliances without much discomfort, then definitely do it.)
• Weatherproof. Those drafty doorways and windows are costing you money! Install weather-stripping if you feel any cold areas around the openings.
• Don’t waste water. In addition to not running the tap while brushing, consider a low-flow showerhead, fix any plumbing leaks, take faster showers, and don’t run the dishwasher or washing machine unless you have a full load.

Pay Down Your Debt

Credit card bills can really weigh you down and take up a significant portion of your monthly household budget. Plus, existing balances accumulate interest charges continually. Therefore, it’s best to understand your credit card debt and act accordingly. A few suggestions would include paying your balance off or at least paying more than the minimum due each month, avoiding running up unnecessary charges, and paying your higher interest cards down first.

If credit card debt is making it tough for you to get by each month, give the credit counselors at ClearPoint a call at 1.888.656.2227 (CCCS). We can help with financial counseling, household budgeting, debt management programs, and more.

Our credit counselors can also assist you in coming up with more ways to save.