by Michele Johanson

Created on: February 23, 2010

Perhaps the first step is to consider why you are broke each month.  Chances are it’s because you have too many bills and it therefore makes sense to start at the top and see how these bills can be reduced.

Credit cards

A well managed credit card is a thing of joy but alas, most of us are all too weak when it comes to controlling credit card spending and the resulting interest charges eat away at the monthly budget in an ever-increasing spiral.  Paying unnecessary interest charges is tantamount to throwing money away – literally.  The only way to reduce interest charges is to spend less in every monthly cycle, while maintaining maximum repayments. 

Simply put, if you spend 100 (dollars, euros, pounds, etc. but I will use dollars for illustrative purposes), your repayment should be in the region of 10 dollars.  This month, aim to spend 90 dollars and repay 10, and next month spend 85 dollars and repay 10 – in this way the gap will slowly be bridged.  It could take a fairly long time to reduce the interest in this way.  You should therefore be looking at ways of increasing the 10 dollar repayment – dollar by miserly dollar.

Saving money and getting out of debt takes a certain amount of discipline but need not be depressing.  Rise to the challenge and try to have some fun along the way.

Food bills

The statistics on food wastage, especially in the USA, are terrifying.  Try noting the daily food wastage costs in your household for one month and you will soon see where there are great savings to be made.  Eliminate waste completely.  Not only will your budget benefit immediately, but you will be doing your bit for the environment.

Reduce expenditure on ready-made or take-out food.  It’s expensive and it’s not good for you.  By preparing more home-cooked meals you will have a healthier family and a healthy family means less money spent on doctor’s bills and medicines, a win-win situation.

Garden

Even the most reluctant gardener should have no problem growing a few salad greens for the family in a small bed or large container outside the kitchen door.  Ideally, these will be organically grown, eliminating harmful chemicals and pesticides.  Fresh garden produce is incomparable with commercially produced produce, both in terms of flavour and in health benefits.

Energy bills

Switch of all appliances – at the plug - not in use at any given time.  Encourage the family to gather in one room for at least an hour or two after dinner each evening, perhaps by playing a board or card game.  Television kills conversation and family bonds are weakened when each family-member is doing his or her own thing in his or her own space.

Gym and health clubs

For many of us, our monthly gym subscriptions are simply a waste of money.  Invest in a bicycle – the exercise comes as part of the package and by cycling to nearby shops instead of driving, fuel bills are reduced. 

There are so many ways in which to get the most out of life without spending money.  Explore at least 5 each week and decide which will work for you and your family and you may find yourself rewarded beyond your wildest dreams.

Learn more about this author, Michele Johanson.
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