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5 Ways Families Can Stop Overspending

For most families, the task of cutting costs is becoming more challenging each year with the price tags for essential items and interest rates shooting up.

This is why families need to get more serious about handling expenses better. But how do you go about saving money when you know you’re already doing your best?

The fact is that opportunities to save money are right under your nose but happened to get overlooked.

Given below are five ways to help families stop overspending and start saving…

1. Overspending with Credit

Even responsible people fall for the the “plastic money” trap and have a hard time getting out of it. The common problem is how families rely on credit cards for satisfying wants beyond their means.

The solution to this problem is to pay off the entire balance each month. If not that, try negotiating for a lower interest rate or transfer your balance to another card with a lower interest rate.

2. Paying for Services Not in Use

Remember that expensive gym membership that you bought to fulfill your New Year’s resolution but never got to use it? Well, it’s the reason why you feel guilty for not getting in shape and for paying for a service you don’t use.

No matter what kind of service you’re paying for without using, it’s a money waster. So before you jump onto such service ask yourself whether you need it and if it will affect your finances.

3. Not Keeping a Tab on Your Media

Long back, television used to be free. Today, you’re paying for it. If you go through your monthly cable statement, you’ll find that you’re paying for programming that you’re not using.

Similarly, go through your next telephone bill. You might be subscribed to paid add-ons that you don’t need. Examine your media and see if it’s really worth the cost.

4. Ignoring the Small Stuff

Spending on the small stuff doesn’t look much, but it can add up pretty quickly. Which is why you should create a habit of writing down every cent you spend for a week.

Being conscious of your what you’re spending, no matter how little, will help you make informed decisions. Even if it means sacrificing a little comfort to save money, then do it.

Always keep in mind that a penny saved, is a penny earned. Even bank CEOs such as Brian Prince of Aozora Bank think oversaving is better than overspending. On the Vimeo profile of Brian Prince, you can learn more about this simple but effective strategy.

5. Shopping on Impulse

When you shop on impulse, you end up paying a lot for a basic commodity. But the truth is that almost anything can be bought for a lower price if you do your homework.

Use the Internet to compare different brands in order to find the best price. Besides this, learn to say no to your kids when they ask something and save the money. You’ll thank yourself later.

FP

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About Kimberly

Kimberly Vetrano resides in the suburbs of New York City with her family, five cats, dog, a tank full of fish and snails. She is also a freelance writer and photographer.