14 Ways to Cut Your Montly Budget

With the economy sliding into recession, and unemployment escalating, many people need to find ways to cut the monthly budget to make ends meet. Making a deep cut in the budget usually involves difficult decisions, and often people don't have any idea where to start.

The painful truth is that there will be some sacrifices. You can't cut a budget without cutting some "extras," and those are often things we've become so used to that we forget we can live without them. Cutting them often involves changing lifestyles, but it's been my experience that often those changes end up being for the better. Many changes are common sense thinking, while others can be surprising.

So, get out those scissors and lets start cutting.

14 ways you can start using immediately to cut your budget.

Invest in curtains or blinds and use the sun. In the summer, blinds can be closed to block out sun that can increase air conditioning bills. In the winter, open the blinds on the sunny side of the house to take advantage of the natural heat. Bonus tip: If you really want to up your solar heating potential in winter, use some cooking spray to adhere bubble wrap (cut to size) to the glass of your windows!

Winterize your house. When it's time to turn on the heat, start by turning out the cold with weather stripping, plastic for the windows, change the air filter in your furnace, insulate your attic, wrap your hot water heater, and anything else you can do to keep the drafts at bay and cut energy usage. Drafts make a house feel much colder than it is, and winterizing can save you can save big on your heating bills. Insulating your attic alone can save you $25 or more dollars a month. Also, make sure lap blankets are readily available throughout the house, and turn down the thermostat. You'll save about 1%, or more, for each degree you turn the thermostat down.

Stop buying processed foods. Processed foods are expensive, and have low nutritional value. Start shopping the outside ring of your grocery store, and leave the processed foods behind. Cooking from scratch is cheaper, and it's also almost always healthier. Try adding some high-protein foods this winter to keep you warm. Lentils, beans, and peas are cheaper than meat and offer an inexpensive way to eat well.

Use a slow cooker. To help in the quest to cook more, use your slow cooker. It takes a lot less energy than your oven or stove, and you can have a fantastic, hot meal ready when you get home! For meal ideas, visit A Year of Crockpotting and see how Stephanie O'Dea does it.

Restrict eating out. Eating out is expensive, even when it's fast food. Take eating out off of your list of options except for special occasions like birthdays or anniversaries. The toll on your pocketbook is two fold, because not only do you pay far more to eat a meal out than cook at home, you also face paying higher medical bills in the future from eating more trans fats, cholesterol, and calories. Cut the budget now and later by eating at home.

Diversify your menu. Try new recipes using new ingredients. This can help you find inexpensive meal options. An interesting diet also lessens the desire to go out, helping you keep the budget cuts in place.

Plan meals in advance. Planning meals in advance lets you purchase groceries at the best prices, slashing your budget. Knowing what you're going to eat and having everything on hand also helps curb the impulse to go out for dinner. Plan at least a week in advance, two if you can. Some people can plan a month in advance and really take advantage of sales. Many people complain about meal planning, saying they often "aren't in the mood" for what's on the menu that night. Ideally, you should have several meals that can be switched around by a day or two if necessary. It's also important, however, to realize that this type of impulse eating is one of the reasons the United States is the fattest country in the world. Try meal planning for at least 6 weeks before you give up on it as impossible for you. Once people get used to it, they usually come to enjoy the stress relief it provides. They also enjoy the cuts to the grocery bill.

Get rid of cable television. We've lived without cable television for over two years. It can be done. Currently, we don't even have "regular" television service because we live in a valley. This can reduce your monthly budget tremendously. It also gives you the opportunity to do new things: read that book you've been meaning to read, or get out and hike. This is great for kids and adults alike. Cutting cable TV leaves more time for conversations with family and friends, and encourages creativity. Many of the popular shows on TV are available in short order of DVD, and renting them is far cheaper than paying that high cable bill.

Find free entertainment. Entertainment is often a budget buster. Make it a priority to cut your entertainment budget by finding local cheap or free things to do. Look in your local paper for community events, or go online and find a MeetUp for your favorite hobby. Most towns have free museums or galleries. Local libraries often host interesting speakers and interest groups. You can also create your own entertainment by going for a walk, doing a home workout, or even heading up a new interest group of your own! Start a book club, writers group, or dog walking league!

Use less water. If you live in a house or apartment where you pay water bills, finding ways to cut your water usage is often easy. Taking shorter showers, turning the water off while you brush your teeth, rinsing dishes all at once instead of individually when you're washing, and installing a low-flow shower head are all great ways to cut that water bill.

Use power strips to cut electricity usage. Many electronics draw energy even when they're off. Televisions and computers are some of the worst offenders, but even your phone charger uses some energy when it's not being used. Take a look around your house and see what doesn't need to be on, and put those items on a power strip. When you're not using it, turn the strip off.

Learn to make coffee at home. Starbuck's is a common stop for most Americans, and for most people an unnecessary one. You can make most of those drinks at home more cheaply and more healthfully than you can buy them. Iced coffee is a snap with a cheap French press, and a second-hand espresso machine will whip up your latte in no time. You can cut the calories and the budget making these drinks yourself in the morning.

Recycle. Most towns have a free recycling program. If you pay for trash pickup, this is a great way to cut that part of your monthly budget. The more you recycle, the less trash you will have to pay to have picked up. Yet another budget cruncher that is also great for the environment.

By simply following these 14 steps, you can make real cuts in your monthly budget that you can see almost immediately.

Resources:

Winterizing helps save on gas bill, repairs. Janice Peterson, Daily Herald. Thursday, 31 January 2008.

Thermostats and Control Systems. US Department of Energy, Energy Efficiency and Renewable Energy.

A Year of Crockpotting. Stephany O'Dea.

MeetUp.com