Some Strategies For Reducing Expenses
Some strategies to reduce costs are looking for in the list of income and expenses, those that can eliminate or reduce. We can start with the highest reaching children. For example: reduce the payment of the House. Those who have own home, can be considered a refinancing of the mortgage loan at a lower interest rate. A debt of $100,000 payable over 30 years at an 8% interest rate, has a monthly payment of principal and interest of $733.77.
That same loan at 6% would have a monthly payment of $599.56. A saving of $134.21 per month or $1610 per year. Those who rent could negotiate one lower payment, moved to a place of lower income or analyze the possibility of buying. It is surprising but at times the monthly payment is reduced to buying a home. We go down insurance premiums. This can be achieved, for example, increasing your deductible, asking for discounts for multiple insurance (home, vehicles, etc.) or ultimately changing of insurance company. We are in control of light, water, telephone, cable and gas costs. Sometimes we leave lights on all night, or we have the air conditioner to a million, we pay for telephone services which we don’t use and pay lots of money for long distance calls.
We use all cable channels we pay? Another chance to save could there be. Let us seek financing at lower interest. We know the interest we pay on each of your credit cards? Some of them may charge us up 18% or more. In that case, we might consider transferring that debt to other credit card that will charge us a more reasonable interest. What interest do we pay on truck loan? These loans also can refinance. Avoid unnecessary or impulse spending. If we’re going shopping, we can take a list. Otherwise we can end up buying on impulse items that we do not need: disks, a new phone, clothing, specialized cleaners, etc. We prepare lunch at home. This can save lot of money. There are those who have managed to reduce their expenses at $150 or more. We investigate before buying. This is especially important in buying large as washing machines, electronic equipment, etc. Compare prices and take advantage of offers. Let us do a monthly and annual budget. A budget is a plan of income and expenses, which includes an estimate for each of the categories of expenses and revenues. But more importantly, try to stay within the budget. Pay us first. To receive our salary, we write a check to our name, to savings or investment. In summary: we do an analysis of income and expenses to prepare a monthly budget seek ways to lower costs and increase revenue is worthwhile, because saving is one of the best ways to accumulate wealth.
