by Olivia Emisar

Created on: September 26, 2010   Last Updated: September 27, 2010

Reducing daily expenses is as simple as using credit cards wisely, planning your purchases ahead of time and eliminating paying for services you don’t need or use. Daily expenses translate into big annual savings quite easily. 

- Credit Cards – 

Charge everything you will pay off at the end of the billing cycle in full and use only a credit card that will give you cash back for charging services you can’t live without. This includes medical co-payments, groceries, phone bill, cable service and gasoline.  

When using credit cards that give you cash back you are getting a discount on all purchase, the trick is to pay them in full so the cash back money is not offset by interest payments. 

- Eliminate Services – 

A $70 cable bill can be trimmed by $15 or more easily without feeling deprived.  Most people are paying for channels they never watch or know they have.  $180 in a 12 month period is as simple as trimming $15 a month from the cable bill. 

Once the cell phone service is out of contract, choose to compare plans and rates with other providers.  Unlimited talk, texting and web are included for the low price of $55 a month with Cricket wireless. They have a Droid and Blackberry available or the same service can be obtained for $45 a month even in their most basic phones.  

A similar plan for a smart phone with AT&T will cost almost double. Let’s say the savings here add up to a conservative $40 a month. Over a 12 month period a consumer would save $480. 

- Groceries – 

Strive to have a meal plan and shop with a list to supplement what is already in the pantry. The average family over spends at the grocery on every trip by picking up things on impulse. Eliminate wasteful spending by sticking to a weekly budget that reduces the monthly bill by $50. Over a 12 month period this is a savings of $600.  Most people can do better than a savings of $12.50 per week. 

Save immediately by bagging lunches instead of buying fast food five times a week.  The savings here vary by individual, but even buying 3 items from the value menu five days a week, will save $720 a year per person. 

- Online Banking – 

Everything that can be paid on line through the bank saves money on stamps, gasoline, envelopes and time.  Savings are varied. 

Based on the quick and easy examples listed above, a single individual would realize a savings of $1,980. 

- Additional immediate savings – 

Make your own multi-purpose non-toxic disinfectants and cleaners by using common baking soda, white vinegar, table salt and water. Calculate how much you spend monthly in cleaning products and add your savings to the list. 

Combine trips to save gas and carpool often. Quit the club membership and exercise at home or local parks. Rent movies for a $1.00 at red box or get them for free from your local library. Add these savings to the list.

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