Tips for Financial Security in 2011

With the current economic recession, cutting back on spending has never been as important as it is now. Here are some tips for getting your finances under control in 2011. Use as many of these tips as apply to your situation.

Cut your current entertainment bill. If you normally go to the movie theater, try renting movies (such as from a Redbox) or sign up for Netflix, or try to create a movie trading co-op with friends and family. Remember to note the rules for Redbox or other similar options as there may be daily fees if you do not return items promptly. Another option is to try your local library which may have DVDs or CDs available for check out.

Find ways to save on your food bill and eat at home more often. If you find yourself eating out because you are too tired or busy to cook, try making dinners ahead of time or cooking in a crock pot. There are many different ways to use a crock pot, don't limit yourself. One great crock pot recipe is a pork loin with quartered red potatoes and baby carrots. You can add your own spices or a soup mix such as Lipton Onion Soup Mix. There are many meals you can make a double portion of to freeze the second portion for another day. Other ways to save on food include reducing the meat portion of meals. Use more veggies and grains to reduce the cost of meals and you will save.

Track your spending. Make a note every time you spend money, and what it was for. You may find you are buying things you don't really need. If you are more visual rather than mathematical, try using spreadsheets or graphs to show your spending by category.

Pay down credit cards. If you have more than one card, pay extra on the one with the highest interest rate. Financial experts indicate that even paying only $10.00 more per payment reduces your debt. If you can transfer balances to a lower interest rate card, do so but watch for hidden transfer fees which can be a flat amount or a percentage of the balance amount transferred. Also, if you have been making at least the minimum payment on time for more than 6 months, call your credit card company and ask to have your interest rate reduced. You can also request that the payments you make be applied to the principal first rather than the interest. This lowers your interest payments in the long run.

Shop around for the best pricing on services you need and cut back on services you just want to have. Even going without for a few months can help you get back on track and you may find that you are perfectly happy without what you eliminated. Examples are newspapers, premium cable channels, magazines, full coverage auto insurance (switch to liability only) and internet providers.

Make a budget; then stick to it. Be sure to allow some extra spending in your budget, as well as savings. Saving even a small amount each month will make any emergencies easier to afford. Even just having enough to treat yourself to a soda or cup of coffee can make you feel less cash strapped and have a brighter outlook on your financial status.