Are you looking at every household budget line item?

Posted by admin on February 23, 2010 · Leave a Comment

When you have to, or want to, cut back on expenses for your family, the place to look is in every household budget category.

Reason: if your budget comes up short by $100 a month, does it matter in the long run where you find that cost savings?

Answer: No. But the details of what are the “easy” budget cuts do vary quite a bit from one family to the next.

I have a series of articles based on the Crown Financial Ministries household budget program at the Downsized Budget: How and Where to Cut Back.

But another approach is to look at a more detailed list of household budget categories and think about money-saving options for each line item that would be appropriate to your family:

Alcohol (Cut back on amounts, decide upon a different favorite beverage, drink at home rather than go out.)
Allowances (When the overall income goes down, it is reasonable to expect that the “fun money” allocated to each household member goes down too.)
Appliances (Repair instead of replace for as long as possible. Another trick is to look for second-hand appliances to buy you a little time before the next big retail purchase).
Baby formula or breastfeeding supplies (Network with other parents of little ones and ask your doctor or nurse for tips on what formulas, bottles and supplies are the best value for the money.)
Batteries (Pay attention to the deals on coupons and drugstore rebates. Use rechargeable batteries as much as possible. Ask for a battery charger for a Christmas gift.)
Birthday and Christmas gifts (Select one low budget, but “perfect,” gift instead of trying to impress relatives with the number of boxes or bags. Send greeting cards instead of gifts to friends.).
Bus fares (If you are a frequent flier on the city bus, add up your bus fares and figure out whether the monthly pass is better deal.)
Cable or satellite TV (Pay close attention to the sales and deals promotions. This is an easy expense to drop if you need to save cash or find that you aren’t watching the extra channels very often.)
Car insurance (Ask your insurance agent what he or she can suggest on the discounts and options. In the meantime, look over your policy when it arrives and make sure the fine print fits your actual usage.)
Car payment and / or car purchase fund (If you can pay off the car early or drive it past the last payment, you have money available to save for down payment on the next car purchase.)
Car repair and maintenance (Watch for the coupons and specials offered by your favorite mechanic.)
Child support paid in or out (This amount might adjust depending on changes in parents’ income and other expenses for the children. Be sure you understand the county or state rules that apply to your child support case so you can file review requests as appropriate.)
Cleaning supplies (Research and try out the eco-friendly and old-school methods. Even if you replace only half your chemical use with alternative supplies, that’s half as many chemicals you need to buy.)
Clothing (Rely on a hand-me-down network or second-hand shops for basic items such as jeans, school uniforms, winter coats and black work pants. Watch the department and discount sales for shoes, socks, work boots and underthings. Make purchase choices based on items that can be worn for multiple occasions such as solid-color tees.)
Coffee shop (Get a frequent flier card if you are a coffee shop customer. The better choice is buy a pound of your favorite coffee shop flavors and brew it at home. Don’t insist on an expensive coffee pot for home. My $10 coffee pot works just fine.)
Computer and office supplies (If your office supply store has a rewards program, sign up. Look during the back-to-school sales in July and August for home office supply deals.)
Condo or neighborhood association fees (If you have to pay a neighborhood association fee, then go to the association meeting and participate in the discussions of what are reasonable expenses for those funds.)
Credit card payments (Pay off, pay down, or at least pay the minimum every month on time. The longer this bill takes to pay off, the more it’s going to cost you.)
Day care and babysitter fees (Are you eligible for tax credits for day care? Can you send the children to grandma’s house for a couple of weeks during the summer rather than pay for day care? Swap with other parents on a co-op basis for the occasional night out.)
Diapers (If you have laundry machines at home, today’s cloth diapers are a big improvement from what used to be available. If you need to use disposable diapers at least on occasion, ask for bags of diapers as baby shower gifts. Another trick is put the word out that you will happily take or swap diaper coupons.)
Dinners out (Discuss within the family as to when and how often the cost of a dinner out is appropriate. A birthday gathering would be a legitimate expense for many families. But the “I don’t have time to cook” excuse is not acceptable when your family is on tight budget. Find another way to handle your dinner menus.)
Donations to church, non-profit or charity (Direct as many charity donations as possible via purchases you make anyway. There are grocery store chains that will let you assign your rewards points to a school or church. You can save box tops for the schools. You can eat at the fundraiser dinners rather than at a restaurant. You can buy the gift cards from the school fundraisers. You can put freebies you earn on grocery coupons in the food pantry baskets.)
Dry cleaning (Avoid dry-clean only attire. But, if you do have some dry-clean pieces, look up the labeling to see if home dry cleaning kits will work. I’ve used those kits and have been pleased with the results.)
Electric bill (Get on the budget-pay plan if your electric bill swings quite a bit during the summer or winter seasons. Convert as many fixtures as possible to CFL bulbs. Look up the electricity usage rates for any new TV sets or appliances you plan to buy.)
Fitness center or gym membership (Ask if your employer or health insurance plan provides fitness center discounts.)
Fuel for the car (Drive fewer miles. I’ve done the math on my family’s gasoline expenses over the years, and that is the biggest factor in how much money goes into our gas tank.)
Furniture (Take on the hand-me-down or second-hand furniture as much as possible. You may still need to buy an occasional bed or other piece on retail, and if so, watch for the sales.)
Garden supplies (Get quality garden tools that will last many years, or take on someone else’s hand-me-downs).
Greeting cards (Buy boxes of assorted cards, get the individual cards at the dollar stores, get crafty and make your own greeting cards.)
Groceries (You know about coupons and watching the sales. But if you haven’t tried Angel Food Ministries or similar grocery-by-the-box programs, what are you waiting for? These services were designed for families on tight budgets. And if your family is eligible for free or reduced-price lunches, WIC, food stamps or food pantry giveaways, sign up.)
Haircuts (Pick a hairstyle that is inexpensive to maintain. I remember how costly it was to style my hair into a perm every four months. I don’t do that any more. I also don’t color my hair. The sprinkle of gray makes me look just old enough to know what I’m talking about.)
Health insurance (Take the time to learn how your insurance policy, COBRA, state program or insurance alternative works so you don’t get stuck with more out-of-pocket expenses than necessary.)
Hobbies (The best hobbies for families on a budget are those that take a lot of time and not a lot of money. As an alternative – ask for hobby items or supplies as birthday or Christmas gifts.)
Home maintenance and repair (Learn as many DIY skills as possible, so that you have cash available for occasions when you need to hire a pro.)
Income tax preparation fees (There are lots of free and low-cost services available for those who have simple tax returns. If you have a complicated tax return, then do the research to find a software package or a preparer you trust to do it right.)
Internet service (I’m noticing that a lot of families these days keep the Internet connection going as long as possible. It is just too useful a tool for details like looking up assistance programs, the best price on a product or provide “stuck at home” entertainment. But if that expense has to go, there are a lot of places you can find free Internet. Many libraries, for example, have either free wireless or free computer labs.)
Landline phone (Find the best option that works for you. My husband and I need to call out-of-state relatives on a frequent basis, and we’ve got a calling plan that does just that.)
Lawn and garden care (Take advantage of free and low-cost resources at the public library and the cooperative extension service offices to learn how to care for your piece of dirt on the cheap.)
Mortgage (If you can’t do anything about the mortgage payment itself, then look to other cost savings elsewhere in your household budget. Keep in mind that a part of your mortgage payment is most likely property taxes and / or homeowners insurance, and you may be able to get those expenses down on their own merits.)
Natural gas or heating oil bill (Put this on the budget-pay plan to average out your monthly cost.)
Newspapers, books and magazines (Make your decisions on which subscriptions or books to keep or buy based on which of those publications will help you save you money. Otherwise, go buy the pretty house and garden magazines at a thrift store or look up the hobby magazines at the library.)
Personal care products (Learn how the drugstore rebate programs work because you can save a bundle of money on soap, vitamins, lipstick and shampoo by timing your purchases to those promotions.)
Pet expenses (Stop buying toys, outfits and accessories. Your pet needs healthy food, appropriate shelter, medical care and your one-on-one attention.)
Photos (Don’t get caught up in the “annual family photo” or seasonal baby photo ritual. If you can’t afford it every year, but want to have those keepsakes, then set up a family studio print every other year.)
Postage (Check on the flat rate box options for shipping packages. Do on-line bill pays for at least some of your bills. Deliver greeting cards in person when you can.)
Property taxes (Watch your tax assessment papers when they arrive each year. Do you think the assessor has a fair value and accurate details listed for your property? If not, follow up on the appeal process.)
Property or renters insurance (Ask your agent for circumstances or bundles in which you can get a discount.)
Rent (Don’t just look for the cheapest rent. Put the cheapest rent options into perspective with related expenses such as will you have to use a laundry center or get a storage unit? Will you have to drive farther to work or school every day?)
School lunches (If your children are eligible for free or reduced-price school lunches, sign up. Pack the kids’ lunches only if you have medical issues to work around, or can consistently pack a lunch cheaper than you can buy it from school.)
Snacks (Stop the vending machine purchases if you are on a budget. Buy your own snacks at the grocery store or food service store, and pack them in your lunch box, briefcase, desk or locker.)
Sports, club and activity fees and equipment (Use second hand equipment as much as possible, especially when you are starting a new hobby. Put limits on the number of activities per family member.)
Sports events attended (Go to the minor league events, or attend the major league or college events that are within close range of home, become a tailgate party expert rather than buy concession food.)
Student loan payments (Learn how the deferment and forbearance policies work on your student loans. A six-month hold on student loan payments was a big help for me at one point. When you are in repayment, make sure to ask for and save the interest statements to send in with your tax returns.)
Textbooks (Ask the professors which books are absolutely needed vs. which ones are helpful. Then you can seek out the best prices on required books, and consider options such as sharing a secondary reference book with a classmate.)
Trash and recycling bill (We used to live in a neighborhood where 2 can trash service per week was cheaper than unlimited service per week. Guess what program we signed up for?)
Tuition and class fees (If you have a student in high school, look into whatever programs are available in your district for college classes on a free or low-cost tuition basis. They might be called dual enrollment, post-secondary options, advanced placement or middle college. It will take 15 credit hours to knock a semester off the college graduation date, but even a couple of classes at the high school level can help with a schedule crunch later.)
Turnpike and bridge tolls (We do use the Ohio Turnpike and Indiana Toll Road on occasion. If you also travel on those routes, look into the electronic pass services. They save money compared to cash rates if you are on the toll roads frequently enough.)
Vacations (Stay-cations are no longer a trendy feature story for the news media. It’s the reality for a lot of families who are on tight budgets. If you still want to do the big family vacations, don’t eliminate them. Just plan them for every two to three years instead of every year.)
Wireless phone (I did have pay-as-you go wireless for two years to save money; but eventually we had to get a real family calling plan. You know when you have a texting, talking or data freak in the family. If so, then do the research to find the best value for your money and save cash elsewhere in your budget.)
Wedding plans (Spend only what you can afford on the wedding, reception and honeymoon. Shop around for the best packages if you have a big family and a reception will cost some bucks. And you can still have a church blessing or religious ceremony on a budget – I’ve seen it done on multiple occasions.)
Work or college lunches (I’m a big fan of K-12 school lunches because the cost is very inexpensive compared to what can be packed in a lunch box. But brown bag lunches for work or on college campus are absolutely way cheaper than fast-food lunches)