Many consumers develop spending habits that can lead to financial crisis; especially if a layoff, job loss, or other stress occurs in the family. Credit counselors can spot these spending patterns and suggest simple lifestyle changes that can make the difference between surviving a financial stress issue and folding under it.
Some examples of small changes to typical spending habits that can make a big difference are:
- Buying coffee. Stopping for a cup every morning on the way to work or getting a special drink during a break can add up. It is easy to spend over $70 a month on this habit alone. You could save up to $1,000 a year if you just made your coffee at home and took a thermos to work.
- Bottled Water. Yes, it usually tastes better than tap water, but $1 a bottle versus less than one cent a bottle makes a big difference to your bottom line. At these prices, it’s a much better deal to buy a filter pitcher for $20 and make your own. That can save you $35 a month or more, and keep over $400 in your pocket each year.
- Checking Account Fees. Many banks are now charging fees for having your money in a checking account. It may be time to look into a local bank or credit union that offers free checking. ATM fees can quickly add up as well. Look for a bank with ATM locations convenient to your home or office and for banks with low ATM fees. Websites like Bankrate.com, NerdWallet.com, or ConsumerReports.org can help you locate and compare banks and fees.
- Cell phones. Look into low cost providers and hold a family meeting about curtailing texting and limiting phone usage until things improve. This can save hundreds each month.
- Cable TV. It may be time to reduce the 300 channel service to basic cable and save $40 or $50 a month without too much sacrifice.
- Brown Bag It. Carry your lunch to work or school. Prepare dinner at home instead of going out or even ordering in. It’s a lot cheaper and can be healthier for you as well. A little extra work is worth it, especially when the savings can be huge.
- Use the Library. It’s free! Your local library offers more than just books for you to check out these days. You can check out movies on DVD, books on tape, and even download e-books. Read current issues of your favorite newspapers and magazines for free in a comfortable chair at your local library. Most public libraries also offer free computer use with internet access and low-cost printing. Your tax dollars already pay for these services and resources - why pay for them twice?
A typical family can save $200 a month or more with some simple, common sense changes to spending habits. An credit counselor can help you make the adjustments and you will be surprised at the difference it can make.
David C. Jones, Ph.D.
President, AICCCA
