Times are bad and many families are seeing more budget deficits than surpluses. But if everyone in the family can find ways to cut down household expenses, balancing the family budget is achievable. Here are some practical ideas to reduce family spending.
Choose Right Telecommunications Services
While telephones, an Internet connection and cable TV may seem like modern day necessities, they can drain the family budget easily. Try the following tips to cut telecommunications costs.
- Mobile phones. If there are more than one mobile phones in the family, get everyone to use the same provider as calls are cheaper to numbers on the same network. If a cell phone is used primarily for emergencies, a prepaid plan will be more cost-effective.
- Free calls over Internet. Use a broadband connection and download an Internet calling program like Skype that allows users to talk online for free.
- Internet use. Those who use the Internet sparingly don’t need a high download limit. However, heavy users should opt for an unlimited usage plan.
- Cable or pay TV. A basic package with news and selected entertainment is good enough for those with little time for TV viewing. Better still, get rid of cable TV altogether. Offerings from local TV stations are often sufficient.
- Bundling telecommunications products. Some providers give extra discounts to customers who combine more than one service with them. So try to bundle home phone, mobile phone, Internet and pay TV if possible.
Use Less Water and Electricity
Save water by taking shorter showers, collecting rain water for plants, checking for water leaks around the house and using water-efficient showerheads, washing machines, dishwashers and dual-flush toilets.
To shrink the electricity bill, buy energy-efficient lights, use clothes lines instead of a dryer, switch off all electrical appliances when not in use and wear thicker clothing instead of leaving the heater on all day long in winter months.
Review Insurance
Having adequate insurance is crucial for families with young children. To save on insurance, try to have life, income protection, private health, car and house insurance with the same insurance company. Families with difficulties meeting their monthly premiums should also consider increase the excess on their house or car insurance policies. Some companies also offer discounts to policy holders who install alarm systems, deadlocks and smoke detectors in their homes. In Australia, cheaper car insurance is also possible if youngsters under the age of 25 are disallowed from driving the family car or if there are only two nominated drivers.
Shop Wisely
Buy only what is needed. Check out bargains and sales before shopping. Avoid shopping at convenience stores as prices are higher. Plan ahead and have one big weekly grocery shopping trip at the supermarket. Write a list of items to buy and stick to it. Buy bulk whenever possible. Another useful tip is not to buy supermarket items at eye level on the shelves. These are higher priced items as they are displayed at strategic spots and food producers pay the supermarket more for this advantage.
Balancing the family budget can be a tough. However, it’s important to cut down household expenses as much as possible. Families can spend less by choosing the right telecommunications services, using less water and electricity, reviewing their insurance and shopping wisely.
Found this article useful? Read also Household Budgeting Tips, Successful Household Budget Management and Family Budgeting Tools.
References:
Koch, David and Libby. Kochie’s Guide – Creating and Building Real Wealth with lots of Love and Laughter. Melbourne: Wilkinson Publishing, 2009.
Berkiaris, Maria. “Shrink your Costs” in Money Magazine. Australia: ACP Magazines, March 2008.
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