5 Ways You Can Cut Your Expenses and Barely Notice

The recent economic downturn has made budgeting and smart spending more important than ever. What makes this belt-tightening difficult is that many of our daily expenses are not discretionary. For example, we can't choose -- at least in the short run -- to pay less on our mortgage every month or to cut down on our property taxes. In my experience, as both a consumer and a finance professional, there are many ways to cut out expenses regularly without feeling like you are cutting back or depriving yourself. Here are my five favorite money-savers:

1. Call your cable and phone companies.

Communications and entertainment companies have more and more competition for customers daily. The rates you are currently paying for things like television and cell phone are likely more flexible than you think. Call up the cable or phone company and discuss with them if there are any loyalty discounts or other ways that they can help you save without cutting down your level of service.

2. Buy a programmable thermostat.

Although this advice has been around for a long time, many homeowners still underestimate the financial savings. A programmable thermostat allows you to set different temperatures for different time periods. So, for example, you can turn the air conditioning down on weekdays when you are at the office and have it come on again just before you get home. Or turn the heat down at night when you are snuggled under the blankets and have it come up a half hour before your alarm goes off. Setting the programmable thermostat has the potential to save you a hundred or more dollars a month on your heating or cooling costs.

3. Change the way you drive.

Most people need to gas up to get to work and, therefore, gas seems to be a fixed expense. But did you know that how you drive is an important factor in how much gas your car guzzles? Hypermiling is the new term for driving gas-efficiently, but the practice has been around for longer than the name. Simple techniques, like driving the speed limit and slowing rather than slamming on the brakes, saves up to 25% on your gas usage.

4. Wait before buying.

The best way to cut down on impulse purchases that you will later regret is to not be impulsive. Plan your spending ahead of time as part of your budget plan. If you see something new that you absolutely must have, wait a week before buying. By then, you will have come up with reasons why it's a good purchase or reasons why you should pass.

5. Read the grocery store flyers.

My grandmother always decided what dinner was going to be for the week and then grocery-shopped accordingly. If you want to save significantly on groceries, however, you will live and die by the weekly ad flyers. Every grocery store puts certain items on sale for half price or less every week to lure customers into the store. Your grocery purchases should be based on these flyers -- but only for grocery items that you would buy anyway. Is your favorite cheese going on sale buy one get one next week? Buy 10 and freeze them. Canned tomatoes on sale for two for a dollar? Fill up the pantry. Then, dinner choices become a function of what's in the house rather than what's at the store.