Five Ways to Cut Spending in the New Year

Spending less in 2009 will probably be one of the most popular resolutions for the New Year and it definitely tops my list. In these uncertain times when there is no job security and many like myself are struggling to pay their monthly bills, hold on to their homes and still put food on the table, it becomes necessary to cut back on spending in order to survive this economic downturn.

One way that I intend to cut back on spending is by making a budget and sticking to it. Since I've never used a budget, this idea is somewhat intimidating. However, I intend to go over all my bills for at least the last six months and write down all my expenditures, including all daily expenses no matter how small. My check book will be a great start in helping me identify how I have been spending my money. I think that once I see in writing how my money is being spent, I will be able to recognize unnecessary and wasteful spending and hopefully eliminate those.

Another way of cutting spending is to brown-bag it for lunch. By taking left-overs from dinner, or making my own sandwiches with cold-cuts from the supermarket, I would be spending far less than if I purchased lunch everyday. Don't forget to take along a soda or bottle of water that was purchased from the store by the case, and therefore cost less than a quarter of buying a single drink in the restaurant. Eating at home versus eating in a restaurant will result in substantial savings over the period of a month, whether it is breakfast, lunch or dinner.

Another wasteful spending that can be eliminated is that morning cup of gourmet coffee that most pick up on their way to work. Although it entails a little more labor and probably waking up a few minutes earlier, it is cheaper to make it at home and take it along with you. Also, many co-workers would be willing to contribute to buying the coffee in bulk and brewing it in the office. This way everyone ends up saving.

Another way that I intend to keep my resolution, is instead of buying expensive presents for birthdays, anniversaries, etc., I intend to give a homemade gift. This could be an arts and craft item, homemade cookies, cakes or even one of my favorite dishes along with the recipe on a card. I think that any of these will not only impress the recipient as a thoughtful gift because I spent precious time working on it, but for me it will work out cheaper.

To stick to my resolution of spending less, I intend to do most of my shopping at discount stores like Walmart or at stores like BJ's or Costco where I can shop in bulk and save. I also intend to keep a sharp eye out for items on sale and purchase them at the sale price. Cutting coupons from the Sunday papers and mailers will also help me save when I go grocery shopping. I realize that I will have to prioritize - food is an essential, while new clothes are a luxury I can't afford right now.

I feel that adopting a more frugal attitude all year long, will help me to better manage my money in the new year. The key is to identify and then eliminate wasteful spending.