The recession forced many people to look at their expenditure. Some became under real pressure as unemployment figures soared. They have come down in the USA to prerecession levels but there are still some worrying statistics. Credit card debt is rising once more at a time when the lessons of the recession should still be fresh in everyone’s mind. It makes more sense to consolidate and look at savings in 2015 than to go on a spending spree. That is the way to create a realistic emergency fund in case the unexpected happens in the future.
Budgets
Companies rely on a budget when planning their strategies. It makes sense that households do likewise. Those people prudent enough to realize the importance of saving money start with a budget. It involves writing down monthly income and expenditure and then giving a little thought to each item of expenditure.
It is sensible to look at such things as energy bills and insurance to ensure that providers are giving value for money. If they are not then there may be some money that can easily be the start of creating a fund. Many of the savings that can be made are around the home and that does not mean sacrifice or any loss of service.
Energy
Energy is a significant cost in every building. Even though the wholesale cost of oil and gas is significantly lower than in recent years those savings have rarely been handed on to consumers. There is absolutely no need for loyalty to a supplier if that supplier is regularly posting huge annual profits. While some of the justifications published to justify pricing are based upon the ongoing need for investment there is another side to it. A case can be made that consumers are suffering because of the demands of shareholders seeking good dividends.
It is not too time consuming to look at what is available on the market. That should not just be the headline rates or introductory offers which change after a given period. As with anything financial the detail in the small print is crucial.
Insurance
Insurance is ideal for rolling everything into a package to cover every household and automobile requirement. It should not take too long to write down every insurance policy that the family has in place. Often families use several different providers when there can be savings by simply switching to one for comparable cover. It is worth reviewing this regularly to ensure the provider of choices remains competitive.
Home Entertainment
Another thing to consider is whether there are package deals combining internet, telephone and television that can offer better value for a similar service. This is an extremely competitive sector and there is always a good chance of finding something comparable to an existing package that comes at a cheaper price. Indeed it is worth asking the question as to whether a landline is even necessary these days given that most people have a mobile and many a smart phone.
Smart TVs are the fashion; they can even be a money saver. Linked to the Internet they can provide all the entertainment the family might want. The question arises as to whether subscription packages to other services are valid any longer.
Cutting expenditure does not mean sacrifice. It is eminently sensible to look at monthly expenditure and regular monitor it to ensure that there is minimal waste on monthly bills. Everyone works hard for their income. If they can build up their savings towards the future by being in control of their expenditure they are likely to face fewer problems if an unexpected bill comes through the post.
James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.
