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Personal Finance - How To Reduce
Your Monthly
Expenses
Cornie Herring
Everyone has fixed expenses which are the basic of
needs for our daily living. There is no way to eliminate the fixed
expenses but with some innovative budgeting, you could save some good
money from this practice. If you have debt problem, a good practice in
expense control and budgeting can help you to free up enough money to
pay down your debt and may prevent you from bankruptcy. Of course, to
accomplish your goal, you might have to live a very austere existence
and scarification.
This article will list down some ideas on how to lower your expenses.
While reading this article, you can make a list of you own ideas to
cutting down your expenses.
Ways To Save Money
1. Reduce the Number Of Credit Cards
For many people, owning a credit card is the style of life and there are
people holding 5 to 10 credit cards. It's so convenient to make payment
with credit cards and you many overlook your budget. Although to
terminate all credit cards are not possible for many people, you could
reduce the number of credit cards in hand.
2. Ask for a Lower Credit Card Interest Rate
A major consumer group conducted a study to find out how easy it is to
get a lower credit card interest rate. Fifty-seven percent (57%) of
those who simply telephoned their credit card company and asked for a
lower interest rate got one instantly. Getting your credit card interest
rate lowered depends on various factors. Normally the bank will approve
your request if you meet the following conditions:
You have a good credit rating -- meaning no late
pay notations on your credit report and a good credit score;
You do not have a high debt-to-income ratio and you
do not carry a big balance on your credit card; You do not send in just the minimum payment
required each month; You have an excellent payment record with that
particular creditor. The credit card is not one that is categorized as
"sub-prime", meaning it is not a secured credit card or one marketed
exclusively to those with bad credit.
When you call and ask for a lower interest rate, your reasoning should
be based on the argument that you deserve it because you're an excellent
customer or you're getting better offers from other credit card banks.
3. Always Buy Classic Style on Clothing
Clothing fads come and go so quickly and it will become out of fashion
after a season. Instead, buy only good quality classic clothing that you
can wear five years from now if you haven't worn it out by then. This
will help you to reduce the frequency of buy new cloths.
4. Know Your Budget on Food
According to some survey, people who do not know how much they spend on
groceries each month are twenty times more likely to be over their heads
in debt than those who know exactly how much they spend on food each
month. A lot of money can be saved by with below practices:
Stop eating outside - Dinners you prepare at home
is significantly less expensive than meals you pay someone else to
prepare.
Don't buy what you don't really need - Good
examples are soft drinks, sugary snacks and other sweets. Giving them up
will improve your health, reduce your medical and dental-related
expenses and fatten your wallet.
Get the best price by comparing supermarkets --
Don't shop at the closest supermarket just because it's more convenient.
Driving a mile or two down the road can save you as much as $50 per week
on groceries.
5. Car pool with your neighbors
If you have neighbors who work close to your company, you can car
pooling with them to save gasoline and transportation cost.
Summary
Above are just a few ideas to reduce your monthly expense, sit down and
list down your own list. You will surprise that by listing down all your
monthly expenses, your will realize that actually there are a lot of
expenses which can be reduced or eliminated. And you can use the saved
money to pay down your debts.
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Cornie Herring is the Author from
StudyKiosk.com. "StudyKiosk-Credit Basics" is an informational
website on credit basics and
debt consolidation. To see recommended, credible lenders and loan
service companies, visit:
Recommended Bad Credit Debt Consolidation Services and Lenders
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