Personal Finance - How To Reduce Your Monthly Expenses

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.