Strategies for Spending Less
EC 1392-e
Reprinted April 2002
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Control Spending
When your income is reduced, immediately stop all excess spending.
Whether your situation is temporary or extended, you need to get the
most for your money.
Studies have found that many families do not adjust their lifestyles
for about 6 months after their income is reduced. That 6 months of ignoring
the situation can bring disaster. When you take charge of your financial
situation, you are making a positive contribution to your family's well-being
now and in the future.
Following basic money management principles can reduce stress
and help you adjust to living on less income. Here are research-tested
principles.
- Make a list of your most important expenses while
you have less income. (This means things you must have
or do.)
- Make a spending plan to determine where your money will go.
Refer to EC 1391, Setting
Spending Priorities, to develop a household budget you can
use.
- Stick to your spending plan. With less income, each spending
decision is critical.
Most people give high priority to fixed expenses such as
rent or mortgage payments, insurance premiums, car payments, and installment
debt. Flexible expenses such as food, utilities, clothing, and
household expenses can be adjusted more easily to fit your income.
All family members need to work together to reduce spending. When
everyone pulls together, you are more likely to succeed in living on
less.
Gather your family and go through the list under each of the flexible-expense
categories. Check the ideas you think would help you reduce spending.
Add your own ideas to each list.
As you go through the list, ask yourself how you could
reduce spending:
- Can you substitute a less costly item?
- How can you conserve your resources and avoid
waste?
- Are there opportunities for you to cooperate with
others by trading or sharing resources?
- Can you barter for some goods or services?
- Can you save if you do it yourself?
- Can you do without?
Food
- Plan your meals around foods you have on hand.
- Plan your meals and snacks for a week ahead. Then, see what
you need to buy, and you also will know whether you have enough money
to last the week. The OSU Extension office in your county can provide
information on thrifty, nutritious food plans.
- Shop from a list based on planned menus. Check food advertisements
for good buys.
- Go shopping as few times as possible. Frequent trips can add
to your monthly bill because it is easy to buy extra items each time.
- Shop alone, if possible. It is hard to say no to your children's
favorite foods when they are along.
- Don't go shopping when you are hungry. Everything looks good
when you are hungry, so it's hard to stick to your list. And shopping
in a hurry may cause you to overlook the best buys.
- Plan low-cost protein foods such as dry beans, eggs, peanut
butter, turkey, and chicken. Hamburger and liver are good buys in
red meats. Large roasts can be cut up and used in different ways for
more than one meal. Include meats in sauces or casseroles to make
them stretch farther. Use slow cooking and/or marinating to tenderize
less expensive cuts of meat.
- Use reconstituted dry milk for cooking instead of whole milk.
It is equally nutritious but less expensive.
- Turn leftovers into "planned overs." You sometimes
can get two meals for the price of one. Store cooked foods properly
to make them last longer. Freeze them if you have the space.
- Take advantage of free- or reduced-price school lunch programs.
Utilities and Household Maintenance
- Maintain and clean your furnace regularly.
- Find and fix air leaks around windows, doors, foundation, electrical
outlets, exhaust fans, and attic openings.
- Install storm windows and doors or put up plastic sheeting
to reduce heat loss.
- Adjust the thermostat setting by 5 degrees and compensate with
more or less clothing. Heating and cooling are the most expensive
utility costs.
- If it's fairly inexpensive to do, insulate ceilings, exterior
walls, under floors, heat ducts, and hot water pipes. You might qualify
for financial help from programs that insulate your home; ask your
utility for information.
- When replacing light bulbs, tubes, and fixtures, select energy-efficient
types. Use fluorescent bulbs wherever possible.
- Turn off unused lights.
- Heat or cool only one room or part of the house. Close doors
to unused rooms and shut off heat/air conditioning to those areas.
- Hang clothes to dry instead of using clothes dryer.
- Use cold water rather than hot whenever you can.
- Take shorter showers.
- Call long-distance only in emergencies. If possible, make calls
when rates are lower. Ask your long-distance carrier for details.
- Investigate alternative long-distance services. You may find
it cheaper to buy a telephone than to rent one. Give up telephone
extensions as well as extra cable television connections.
- Consider writing letters instead of calling long-distance.
- Learn to do simple home repairs such as replacing washers in
faucets and repairing damaged electric cords, torn window screens,
or broken window panes.
Transportation and Upkeep
- Carefully plan car travel to reduce driving expenses. If you
own more than one vehicle, sell one if it is reasonable to do so.
- Car pool or use public transit when possible.
- Do your own vehicle maintenance if you have the skills and
tools.
- Walk or ride a bicycle instead of using a car.
- Evaluate auto insurance policies to make sure you are covered
adequately. You may be able to reduce your premiums by increasing
deductibles on collision and comprehensive.
- If you're employed seasonally, ask your agent to have insurance-premium
bills due when you are working.
Medical Expenses
- Don't forget good health habits. Good nutrition can reduce
illness and tooth decay.
- Learn the symptoms of common diseases in order to determine
when seeing a doctor is advisable. Early treatment of many diseases
or injuries is often least expensive. Consider taking classes on inexpensive
first aid or baby care offered by community agencies, if you have
time.
- Shop for doctors and dentists whose fees are reasonable. You
may find it less expensive to stick with a regular doctor or dentist
to avoid duplicating tests and records. Your doctor probably would
agree to an installment payment plan.
- Take advantage of low-cost or free clinics and immunizations
such as those often available during local health fairs.
- Update medical insurance policies to eliminate duplicate coverage;
most companies pay on a co-insured basis. If you do not have health
insurance, see whether you qualify for the Oregon Health Plan.
- If hospitalization is necessary, use a ward or semiprivate
room. Check the hospital statement to make sure the charges are for
services you actually received.
- Ask your doctor to prescribe and your druggist to fill prescriptions
with generic drugs. Avoid overusing nonprescription drugs.
Clothing and Personal Care
- Look at each family member's wardrobe to see which items must
be replaced or added. Repair and/or remodel clothing and swap items
of clothing with other family members or friends. Try to develop the
attitude in your children that "handed down" clothing is
not only economical but also enjoyable.
- Follow instructions when laundering clothes.
- Mend clothing promptly. Resole and polish shoes instead
of buying new shoes.
- Have children change to old, worn clothing for play.
When you buy clothing:
- Compare price and quality . Check discount stores, mail-order
catalogs, thrift stores, second-hand outlets and garage sales.
- Check size and fit. Clothing that does not fit well
will not be worn often.
- Buy clothing that is washable and easy to care for.
Check care labels.
- Carefully coordinate clothing and accessories so that
they can be used with several outfits.
- Learn to do your own shampoo, set, manicure, etc. at
home. Cut your children's hair yourself. Select cosmetic and
toiletries that are reasonably priced.
Recreation and Leisure
- Choose activities that are free or cost only a little such
as hiking, picnicking, visiting a museum or attending a free concert.
Attend school or community events.
- If you entertain at home, have potluck affairs for family
and friends. This way, everyone shares the food costs.
- Organize sharing clubs for movies, sports equipment, board
games, puzzles, and books.
Child Care
- Try to arrange your family's schedule so one parent is available
while unemployed to care for children while the other parent works.
If both parents are unemployed, try to alternate child care responsibilities
so each has an opportunity to look for a job or has some personal
time. If only one parent is in the home, try to share child-care responsibilities
with a relative, neighbor or friend.
- Form a babysitting co-op with other parents.
- Investigate public nursery schools and day care centers.
Arrange car pools with other parents for children's school and
extra-curricular activities.
- Some job training programs provide child care.
Miscellaneous Expenses
- Carefully consider each gift or donation. Reduce cash giving
and donate services instead. Make gifts instead of buying them, or
give services such as babysitting, elder care, house watching or pet
care.
- If you have expensive habits such as smoking and drinking alcoholic
beverages, you may want to reduce or eliminate them.
- Stop magazine or newspaper subscriptions when it is
time to renew them. Use your public library to find information
you may need from these sources.
- Set a reasonable amount for children's allowances and have
a clear understanding with them about what it covers.
Before buying an item, ask yourself:
- Can I do without it?
- Can I postpone its purchase?
- Can I substitute something else that costs less?
- Can I use my own skills to make it myself?
- Do I already own one?
Adapted for use in Oregon
from a University of Wisconsin-Extension publication (B3459-2).
Published March 1992. Reprinted April 2002. |
