How to Trim Fat From the Family Budget

Small changes have reduced electrical charges in my home. On a year-over-year basis, we have used 20 percent less electricity due to two minor adjustments. We have switched most of the light bulbs to compact florescent bulbs (CFLs), an energy-saving option. Additionally, during the day and vacations, we turn off the water heater, a move that generates cool savings.

(photo by Yael Rosenberg)

Those are just a few of the ways of finding additional space in a tight budget, according to the Consumer Credit Counseling Service (CCCS) of Palm Beach County, Fla., and the Treasure Coast. How do you cut the fat if your budget is already lean? A reality check will help you write smaller checks for household bills, according to the folks at CCCS.

"Successful saving starts with a realistic look at how you are spending money now and what changes you can realistically make," said Jessica Cecere, president of CCCS.

For example, consumers can cut electric bills by $50 or more by washing clothes in cold water, using energy-efficient bulbs and installing a programmable thermostat, Cecere said. Here are other recommended changes:


•Trim salon visits. It's possible to save several hundreds of dollars annually with do-it-yourself haircuts, manicures and pedicures. If you're hooked on salon pampering, stretch out visits to the professionals with home-grooming sessions.

•Free movies. Libraries and community centers are a source of free movie rentals. One credit counseling client saved $20 to $40 every month by borrowing movies from the library. Another option: Set up an informal movie library with friends, neighbors and co-workers.

•Review monthly expenses. Periodically review automatic bill-paying charges, credit card statements and other monthly bills. Automatic debits may include gym fees, vacation clubs, publications or other subscription services that you may no longer use, according to CCCS. Scan bills for overcharges and other errors.

•Go green. Energy efficient appliances use less energy and save money over the life of the product. In my home, we were surprised to learn that our old refrigerator and stove were energy hogs. Likewise, a CFL bulb uses 75 percent less energy than a standard light bulb and last 10 times longer, according to the U.S. Department of Energy.

Finding My Money Leaks: The August Report

Yup. I could have saved more and spent less in August. As promised, I paid careful attention to my spending, saving and consuming habits in August. We all have money leaks. Here are my downfalls & solutions:

• Lost items: I use paraben-free cosmetics from Origins and Burt's Bees. Unfortunately, while at the zoo with my kids, I lost my favorite lip gloss. I was careless and should have paid more attention. The replacement cost represents money that I could have saved or used for other expenses. My goal for September is to lower or eliminate careless costs.


• Expired coupons: As a member of the frequent shopper program at CVS, I often receive coupon offers that are attractive. For example, during the summer, I received a coupon for $5 off a $20 purchase, which would have been perfect for school supplies. But I didn't check the offer date, and the deal expired before I used the coupon. My goal for September is to be more vigilant about deals and deadlines. I also plan to make better use of my calendar by flagging important expiration dates and stashing my receipts in the folder section of my home calendar.


• Light check: We have made tremendous progress on our electric bill and have converted our home to CFL bulbs. With the exception of the light bulbs in the display case and the the lava light, my home is illuminated by energy-saving CFLs. However, sometimes when we are rushing out of the home, we have forgotten to turn off lights, the air conditioner the fans. One ceiling fan can cost up to $7 a month if it runs nonstop. My goal: No matter how busy, I plan to double check lights and power before the morning or afternoon rush hours.
  
• Costly delays: I traveled a lot during the summer, including short trips to Pittsburgh and Orlando. Travel specials offered great deals, but I could have spent less if I had not procrastinated. My goal: Book early, save more.
  
  
• Keep records: My August money leak challenge prompted me to pay closer attention for 30 days. On a scale of 1-10, my attention span hit the mid range of 6-7. I can do better. My September goal: From September 15 -30, I plan to keep an expense journal. With a shorter tracking period, I hope to gather more insights and cut more waste. Watch this space.

Saving $1,000 by Giving up Sugar

My sweet tooth is an expensive addiction, costing about $1,000 annually on sugary treats. I tracked my money leaks and was stunned by the amount spent on junk food. This realization is especially shocking because I am a yoga-contorting, tofu-eating health nut.

I consume flax seed, vitamins and green tea. But my shopping list also includes double chocolate muffins, cappuccino ice cream and sports drinks packed with calories.

The new frugal diet: Less sugar on weekdays with the goal of saving almost $1,000 in candied treats during the next 12 months. I'm serious: From Monday through Friday, I will not eat: candy, soda, sweetened power drinks, muffins, donuts, cakes, Danishes and other treats. Even dried fruit -- especially the candied variety -- is on my Do Not Eat (DNE) List.


The calculations are stunning. On a real sugary week, breakfast sweets and other treats really take a bite out of my budget. I spend up to $20-$25 a week, $80-$100/month or $720 - $1,000/annually on junk food. Think about it: my favorite muffins (600 calories per serving) are $3.50 each. If I have one muffin each morning before work, that's $17.50 a week, just for breakfast treats.

Despite my initial denials, the evidence was hard to ignore. As I studied the numbers recorded in a small notebook, I realized that sugar was eating away at my health and my bank account. So as a fiscal and physical fix, I've begun a new get-rich, get-healthy diet. I'm in Week #2 and here are my rules.

1. No after-dinner desserts or breakfast treats or midday sugar snacks during the weekday.

2. Cut back on processed food with high sugar content.

3. Read labels and avoid sugar substitutes such as corn starch, maple syrup and fructose.

4. Drink lots of unsweetened herbal teas. Sugar in coffee is allowed. Drink lots of water.

5. Limit fruit juices. When I do drink fruit juices, I've been diluting the OJ and cranberry juice with water.

6. Desserts and treats, however, are permitted from sundown Friday night until Sunday night. Weekend luxuries are permitted as a perk for good behavior during the week.
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Sharon Harvey Rosenberg is the author of The Frugal Duchess of South Beach: How to Live Well and Save Money... Anywhere!, which will be published in June of 2008 by DPL Press

10 Little Budget Hits from Bankrate.com

At msn.com, there's a helpful featured called: "10 little expenses that add up fast" from Bankrate.com. The list contains a few standard budget-biters: take-out coffee, cigarettes, bottled water from little shops, etc. The list also contains a few outside-the-box entries: the car wash, manicures and unused gym memberships.

The article is helpful because it provides the annualized tab for those expenses. For instance, the estimated annual tab for vending machine snacks: $280

Here's my list of possible mini-budget busters:

1. muffins or other breakfast snacks: $400- $500 annually

2. rotating ceiling fans in unoccupied rooms $8 per fan/per month

3. unused magazine and newspaper subscriptions: $30 to $60 annually

4. late fees library/rentals: $5 a month or $60 annually

5. paper products (cups, napkins, paper plates) $400 annually

6. last-minute school supplies

7. replacements for forgotten supplies/clothing while traveling: $100 to $200 annually

8. convenience store snacks while traveling (DIY snacks are cheaper): $50 annually

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Previous Posts

Today:

How Worrying Costs Me $6,500 a Year

Airhead vs Workaholic: What I Learned about Money from Writing a Book

Uncle Sam’s “Stocking Stuffers:” A Guest Post From a CPA

Yesterday:

Wait 'Til January & Other Great Last-Minute Shopping Tips

Free Online Typing Drills: 10 Frugal Business & Craft Classes

Frugal & Green Rx for Post-Holiday Cabin Fever

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