The last time we examined a few ways to cut costs during leaner times. This week we will continue with some additional economical ideas.
- Pay the mortgage bi-weekly. If you pay a monthly mortgage, you may be able to reduce the number of payments by checking with your lender to find out if they have a bi-weekly payment plan (you pay the same amount, only half of the mortgage is submitted mid month). Still, in order for this type of arrangement to fully work in your favor, the lender must immediately credit the mid month payment (so be sure to carefully explore the lender’s guidelines). The result if done properly? Impressively fewer mortgage payments! For example, a 30-year loan may take only 24 years to pay off!
- Visit the library. So, you enjoy reading, watching movies, and even downloading books onto your e-reader? Then dust off your library card (assuming it’s dusty) and borrow the items for free. Taking advantage of town benefits always makes sense, but it especially prudent when money is tight. A bonus? No one will rush you out the door if you want to stay for a while. You can peruse the book shelves, sit and read for hours, or grab a novel and run; it’s completely up to you. An added perk? You can extend the length of time you have access to the books you checked out simply by calling the library. And movies? There’s typically an impressive collection, although the borrowing window is generally much shorter.
- Entertain at home. Years ago, friends loved to congregate at each other’s homes and enjoy an evening of fun. They shared a cocktail or two, played bridge and other interesting games, or just chatted about worldly events while savoring wine and munchies. In recent years, meeting up outside the home for dinner and entertainment has become more fashionable, but this can be pricey, especially if it happens regularly. In fact, many restaurants charge in the vicinity of $10 for one glass of wine. Multiply that by a table of 4, and there goes $40 just for drinks (and that’s not including the tip!). Then, if bowling, dancing, or movie tickets are thrown into the mix, the evening becomes even more expensive. Because of this, consider bringing back the entertainment patterns of the past, at least some of the time. You will not only save some money, you’ll also have a lot of fun!
- Leave credit cards in the drawer. At one time, people relied on cash. If they didn’t have the money to buy something, they didn’t buy it. Today, that mentality is passé. What changed? Well, credit cards are relatively easy to get and even easier to pull out. And, where individuals used to have one card they carried with them on special occasions, countless people today carry multiple cards and use them freely. As we know, the funds do not have to be sitting in the bank to cover the purchase because the bill doesn’t arrive until the following month. Nevertheless, once it does come, some cardholders pay only the minimum due, and interest rates inflate the balance. Yes, plastic is convenient, but it’s not always wise. An exception? When you use credit cards primarily for essentials and pay the complete balance at the end of the month (so interest does not accrue); credit cards can then work for you instead of against you.
Thriftiness makes sense, especially during uncertain times. Carefully monitoring your cash flow can leave you feeling a little more secure.
