by Catherine Woods

Created on: November 18, 2009   Last Updated: November 19, 2009

How to Drastically Reduce Spending

Over 10% of the population is out of work and the rest are trying to find ways to cut back. Most try to cut back in small ways only to become disillusioned when they do not see any difference in their monthly budget. The problem is not that they are not saving money; it is that they are not saving enough money to make a real difference. People need to find many ways to save money in order to drastically reduce spending. By applying multiple money saving tricks, like the ones listed below, you will see a dramatic difference in your budget.

ENTERTAINMENT

Begin by cutting your entertainment budget to nothing. So many people spend hundreds of dollars a month to entertain themselves when this is completely unnecessary. There are hundreds of free ways to entertain yourself during your free time. Here are a few ideas.

- Go to your local library to rent books and movies. You may be surprised what a great selection they have.

- If you want to see a new DVD release, look for a Red Box code to get a free night rental.

- Pull out old board games or a deck of cards. These can be so much fun, and they are more than likely just collecting dust.

- Look for free events around your town. Concerts, free museum days or a free day at the zoo are just some of the things that could be available in your area.

- Go to a local park for a picnic or have a cook out with friends.

Entertainment doesn't have to cost anything. Cut this cost out completely and you will be amazed at what it does to your budget.

FOOD

Learn how to cut your food bill in half. There are so many resources available online and in books to help you do this. Put these tips into practice.

- Plan every meal out ahead of time to save time and make sure you have all the ingredients you need. This helps eliminate eating out.

- Build an arsenal of cheap meals that you can make quickly. Set a goal to keep every meal around $1-$2 a person.

- Learn how to use coupons wisely. There are people who spend less than $1000 a year on groceries because they know how to use coupons. You could learn how to be one of them.

UTILITIES

Another huge expense for people is their utilities. Electric, water, telephone, and internet are all places you want to maximize your savings. Here are a few ways to save in these areas.

- Turn off lights when you are not in the room.

- Turn off your AC or heat completely and find natural ways to keep the temperature bearable.

- Unplug everything that you are not using.

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