TOP

1. Mortgage or Rent

   • Do you REALLY like your home? If not sell and/or move to a cheaper place.
   • Will your landlord take some money off the rent in exchange for your labor on work that needs to be done on your own home or other properties he may own?
   • Is refinancing your mortgage an option? If you financed your home at a higher than going rate interest, it may be feasible as long as the costs to do so are not large.
   • Do you have an extra room or finished basement/attic available? Maybe you could rent it out or get a roommate. I'm not talkin' "single white female" the movie here. I'm talkin' about a grad student or elderly person that just wants to avoid the nursing home or a divorced exec that lives at his office more than at home.
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2. Second Mortgages/ Home equity loans
   • Can you refinance that and your first mortgage into one? This usually lowers payments because the second loan is at a higher interest rate and shorter repayment terms. Yeah, you may pay more interest in the long term but what does that matter if you will be foreclosed on for being unable to make the payments now at all?
   • Is the second at a high rate of interest with a finance company? Maybe getting a better deal and rewriting that loan wouldn't be all that bad. You'd have to do the math, but sometimes this is feasible. More times than not, I'd say it isn't a good idea, though.
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3. Food
   • Shop only once per pay period. Make a list. Get only what is on the list. yadda, yadda, yadda.....I bet you've heard all these before.
   • Plan your meals ahead of time and make your list off of that. If you are clueless on this, check out my meal plan and list.
   • Do you qualify for food stamps? Swallow your pride and find out. They were designed to be used for people in your situation. Forget all the dead beat stories. You know different. Hopefully, you will only need them for a short time and if you've paid your taxes, you've already paid for them.
   • Buy less meat or no meat at all.
   • Stop eating out entirely. Yeah, right, I don't believe THAT for a second. If you do eat out, do it once a week and look for great deals. Two for one pizza nights, promotional deals, the grand opening specials, etc. They are everywhere.
   • School lunches....are they worth it? Do the math....many say they aren't worth it. I guess it depends on the area. In my area, it is totally worth it because they give seconds once everyone has been served and my son eats like a horse. I have to spend alot when I make his lunch to feed him enough.
   • Special diets, vitamins, and supplements.....are they worth it? do you REALLY need them? Evaluate this for yourself. If they are for health reasons, you will look at it much different than if they are for vanity reasons.
   • How much pop are you drinking? Beer? We used to go through 2 cases a week of 7up in our home, rationalizing that it WAS caffeine free after all, but that cost us $10 week, $42.50 month, $506 year!!! Not to mention calories and preservatives.
   • There are about a million other things I could say on this, but I'll save them for another day for now.
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4. Utilities
   • Turn off all the lights, turn down the thermostat, lower the water heater temperature, etc., etc. You've heard all of that before, I'm sure.
   • Install timers on all little used light switches that always get left on. Use them in closets, small second bathrooms, hallways, back porch lights, garage lights, laundry rooms.
   • Use fluorescents. Yes, they cost more to buy, but they last longer and are cheap on electricity use. This is one of those things that people tell you to do but you never do. I never would have done it until we moved into a home that already had them in some rooms. I have had to replace every regular bulb in my house in the last two years except those and when I replaced the regulars for flourescents, my light bill went down to what I used to pay in an apartment. Saved me $30 per month, about $400 per year. REALLY!!!
   • Next time you replace a dryer or stove. Buy a gas one. I was given an electric dryer, brand new....thought I was given a great deal. Remember the money I saved with the fluorescents? The dryer sucked that right out of me!
   • Shut off your phone and get a pager for $20 a month rent to stop yourself from making frivolous long distance calls. You can get most pagers cheaper but I'm generalizing. Some services come with voice mail and everything. I know several people that have done this and tell me it works wonders. Of course, I would never do it.....(just being honest!)
   • Cut all that call waiting and caller ID crap. Monitor the long distance bill like a hawk. Put a cup by the phone and tell everyone that it's now a pay phone and phone calls are a quarter and long distance is a dime a minute (just like on t.v.). I'm serious! This stuff works with some families.
   • WHY do you need the car phone? WHAT? WHAT?
   • Okay, if you need it for work then keep it, but why are you having to pay for a portion of it then?
   • Do you watch alot of television and don't have alot of recreation? Keep the cable. But...get rid of all those cheesy pay channels that you never watch. Which channels are important to you? In my house that is Discovery, Nickelodeon, and CNN. Those come with basic cable in my area. I will admit that I have the full blown package in my house so you are free to call me a hypocrite. My husband needs something to do while I'm on the computer all the time.
   • How bad is your water? Do you absolutely need the softener? Is renting costing you more than buying?
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5. Insurance
   • Can you raise your deductibles to lower your premiums?
   • Can your cash values on your life policies pay your premiums for a while?
   • Is your Cobra Health insurance policy costing you a large amount every month to keep up? Have you checked around for self insured policies that could be cheaper?
   • Are you usually a healthy person? Do you really need the health policy? Would a major medical policy to cover an emergency serve you better? I am one of those people that rarely gets sick so I have never really considered that I NEED a full blown HMO policy. Now that I kind of have one, I never use it except for the once a year flu and gyn. appointments (which they only pay for one a year, anyway).
   • Do you have air bags, anti-theft devices, shoulder lock seat belts, automatic seatbelts, etc.? You could get a discount on your car insurance. There are also discounts for good drivers, honor roll students, long term policy holders.....
   • Do you pay your kids' car insurance? Quit spoiling the kid and make them go get a job! Sorry, one of my pet peeves is that so many parents pay for their kids' ways. Even as a "Gen Xer", I have always felt deprived because my parents were too cheap to do that kind of stuff; but then, I look at where I am and where those spoiled brats are now and LAUGH!
   • Do you have cancer or has anyone in your family ever had cancer? If not, drop the cancer insurance. Most life and health policies cover this pretty thoroughly anyway.
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6. Transportation
   • Just how many frivolous trips are you making here and there? Could you benefit from better planning? I am a big advocate of LISTS! Hel-lo! Make a list!
   • Do all your errands on one day. I do all my stuff on Saturday. I go to the grocery store, the bank, the post office, the office supply store, the dry cleaners, birthday parties, gas station, etc.
   • Please don't pay for full service! Unless you are disabled, get your butt out of that car and pump the darn gas yourself!
   • Keep up with the maintenance of your vehicle obsessively. Do all the work you can yourself. Use coupons for oil changes and tune ups and anything else that is cheaper or easier for someone else to do.
   • See if your local high school shop needs a project car and submit your car that won't run because of a blown head gasket. What have you got to lose? You aren't using it because you'll never get the money together to repair it. They usually just need you to buy the parts, labor is free for their education. Some colleges do this, too.
   • Wash your own dang car!!!
   • Plan out your routes to avoid toll ways if possible. I know this isn't always practical but I thought I'd throw it out there.
   • Can you refinance your car to lower the payment? Yes, this will maybe extend your car payment and may mean more interest paid for it. Therefore, it isn't always worth it. But....it could be your only option sometimes.
   • Avoid getting two car payments if at all possible. That is a big expense for you. If it's too late, consider asking one of the lenders to refinance both cars into one payment. This can sometimes result in a lower interest rate or a lower overall payment. Once again, you are only transferring the debt, but it is a possibility that I have seen others successfully do.
   • How close is your car to pay off? Can you pay it off before the time it is due because of a tax return or bonus? Most people are tempted to pay off credit card debt but if you are looking for more cash, try this. Car payments are usually the higher payment due to the shorter loan time.
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7. Daycare and Kid expenses
   • Child support and alimony payments cannot be reduced without court interaction usually. However, if you just have a verbal agreement, or are paying your ex directly and are on good terms, you may be able to work this out. Talk to the ex and explain the situation and see if the ex would agree to low or no payments for now. Decide on repayment terms at that time so that each of you has expectations for the future.
   • If your ex is less than understanding, you may be dragged into court. Be prepared by at least talking to your attorney and/ or the Dept. of Child Support Enforcement.
   • If your kids are in private school, ask for a hardship discount or scholarship. See if they have work programs. Take them out and put them in public school. Does the school offer any discount if you offer them volunteer services or some type of specialty service?
   • Are you paying too much for a sitter? If you have special needs or hours, then maybe not. However, those of us that don't need special treatment shouldn't be paying some of the fees I hear about. I agree that this is hard work....I have baby sat in my lifetime.....but I have never paid more than $75 week for a child under 5 and $65 for a child over that. They go to school or church daycare programs that are state monitored. Yes, they are big. You may feel that your child will get lost in the shuffle. Just wait....most daycares do not have nearly as large a ratio of teachers to kids as schools do....and your child will probably attend school someday.
   • For a couple of years, I swapped babysitting with a girl in town here that worked a different shift than me. She worked nights and I worked third shift but needed someone while I slept in the day. Worked out great and we avoided the entire cost of babysitters. It was a brilliant idea at the time....thank you very much. And I found her with a classified ad.
   • Quit spoiling your kids unless they are so gifted that they are obviously deserving of those things. If they are old enough, make them work for their money. Not for you, for someone else. Make them pay the entire cost of those Air Jordans minus what you would've paid ($20 at Kmart). My son is only 8 and I do this to him all the time. After getting his bike stolen for the third time, we refused to pay for a new one again. It took him three months to save up the $50 for a bottom of the line bike. But, he never left it out in the yard again......and we bought him a cool bike when Santa came and we had the money already set aside for it.
   • DO NOT get a student loan for your kid unless it is the last resort. This once again is a very personal decision. However, you have supported them for 18 years or more; let them learn to do something for themselves. Tell them to get their own student loan if possible. Tell them to get a job and save the money for them. Get a second job yourself and sign the check over to the college. Make them go to community college first. I know....it's YOUR KID.....you want the very best for them...just don't hand it to them on a silver platter and ruin yourself financially over it.
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8. Health Costs
   • Take care of yourself. Eat right. Treat a cold immediately. Research the over the counter meds. Exercise.
   • Barter some services, if you have a special skill. Most doctors are in business for themselves, so they have this ability. Maybe they need artwork for their lobby, maybe they are short on office help, maybe you can fix their car......the worst they can say is "no". I know this is a little extreme, but in the old days, they did this all the time. And, some expenses aren't deductible for them. Getting their personal car fixed is not deductible but the supplies they use to fix you are.
   • The drug manufacturers will sometimes give you free medication if your doctor requests this for you. Some community programs will help contact them. Ask!
   • Look for sliding fee scale health services, especially if your income has changed to a less than desirable level.
   • Apply for Medicaid. You have already paid for this with your taxes and you probably won't need it very long.
   • Shop around for prescription costs and eyeglasses. You'd be surprised by the differences. I have clients that pay $300 for new glasses and clients that pay $30-100 for new glasses.
   • Tell your doctor or dentist of your situation. They may have suggestions for cheaper meds or offer to allow you to pay less for a short time.
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9. Savings Items
   • Call every agent in town to shop rates on homeowners insurance.
   • Do you have a landscaping service?<gasp> Shame on you!!!
   • Do you have a housekeeper?<GASP> I won't even go there!
   • How much are you REALLY spending on clothes? I always have people say they only spend a hundred dollars per year per person in their family. Come on! That's just the socks and underwear, right? Anyway, break it down into tiny little details to figure it out if you have to.
   • Car repairs and maintenance are taken care of above in Transportation.
   • Are you paying $200 at tax time for a CPA to fill out your 1040EZ?? Read up and do them yourself or call around for new rates.
   • If you belong to any associations or clubs that are of no use to you, drop them.
   • Do you take a yearly vacation? To Disney World? If you are having trouble meeting your monthly bills, now is the time to cancel the annual vacation. If that seems cruel, then at least consider doing the local thing....stay within your state. Find something cheap and fun. Camping, fishing, road trips, etc.
   • If you travel to see relatives, ask them to make the trip to see you this year or offer to pay their gas there. You will still win out because you didn't have to feed everyone along the way.
   • If you don't have a library card, go get one now. Then, cancel all your magazine subscriptions and book clubs.
   • Get a paper route and read the daily paper before or as you deliver it.
   • Cut down on travel and Christmas by staying home and sending only cards or gift certificates. Buy for only the immediate family or for only your kids. Suggest that it's time to start an exchange at Christmas. Make gifts with the kids for Grandparents.
   • Send only cards for Birthdays. Give them the gift of your services if you want to give them SOMEthing.....babysitting for a day, washing their car, walking their dog, house-sitting, etc.
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10. Miscellaneous
    • Can you do the pest control services yourself or is it only a job for the professionals?
    • Are you using the ATM at $1 per pop? Use only your bank's ATM or get rid of it.
    • There are tons of banks that offer no fee checking. Call around. Of course, you get what you pay for.
    • Grooming your dog on a weekly basis is a little much, don't you think? I mean, the dog isn't doing a whole heck of alot, is it? I know this can be a sensitive area for some people. I just want you to rationalize it realistically. Think about those weekly groomings and the chopped steak you've been feeding him.
    • Can't really argue with the post office. Stamps cost what they cost. But do you need to send every relative you know a weekly newsletter about your life?
    • Does little Jenny really like piano lessons or are you cramming them down her throat? Does she like piano so much that she'd die with out the lessons? Let her quit and save the money if she hates them. See if she'd be willing to chip in the cost if she loves them. If she's gifted, maybe her teacher could use some help teaching the beginners in exchange for her lessons.
    • Is everything you own "Dry Clean Only"? Sell it all at consignment and replace with washable items. Use coupons. Wear only on special occasions.
    • Are your hobbies really costly? Are they worth the cost? Could you turn your hobby into a business?
    • If you smoke, you need to quit. If you can't quit (like me, for now), smoke the cheapest things you can get your hands on...you know, the store brand or brand x. If you are going to kill yourself with an ashtray mouth, you might as well do it as cheaply as possible. Please don't flame me on this one....I'm a smoker, too, and I'm just being honest.
    • Are you a party animal? Bar hopper? Do you rent 10 movies every weekend? Do you as a non custodial parent treat your kids to a movie every weekend night? This is a category that seems to take on a life of its own once it is started. Only you have the opportunity to change it. You have to be able to decide if it is something you can cut or not. It is your choice.
    • Are you buying make up at the department store counters? Is that because your looks are your job? Is it because you break out in hives if you wear the cheaper brands? There must be some reason for paying $25 for lipstick that you can buy at the drugstore for $2.99.
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Created April 25, 1997 by the Money Master
Copyright ©1997 - 2001 by the Moneymaster  
Updated January 21, 2001  by the Moneymaster
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