How to Save Money During the Credit Crunch

Methods of Reducing Outgoings in the Current Economic Situation

Oct 7, 2008

For many people, times are difficult financially. But with a little care, one can save money...and still have something left for that occasional treat or trip.

There are a number of ways to cut back on what is spent -- when buying food, in the home, during leisure activities, or when traveling. Small amounts saved can add up over the course of a year...and be used for treats or family outings. Here is a selection of possibilities that everyone can do.

Reducing the Amount Spent on Food

Everyone needs to eat. But there are ways to spend far less on food than most people do. Buying fruit and vegetables in season can save a substantial amount. It is also a good idea to always use a shopping list and not to impulse buy the expensive items that make a huge profit for the supermarket. Taking a packed lunch to work rather than eating out or in an office canteen can save as much as £5 ($10) a day. This adds up to over £1000 ($2000) per year. Cooking from basic ingredients rather than buying tins and packets will also save money…and often takes very little longer.

Saving Money When Traveling

It is worth joining a car pool or using a vehicle-sharing scheme if there are any in the area. Travelling by train is often cheaper than using the car, even for one person, particularly if one books in advance. The same applies to flights and holidays; booking well in advance can save a large amount of money.

Leisure, House and Home Savings

It is always worth checking one’s mobile phone package. Mobile phone companies continually change their deals, and there may be a better one available than there was some time ago.

Many items can be bought on-line far cheaper than from a traditional outlet. These include contact lenses, pet medication and flea treatments, and garden products. It is also worth checking on Ebay; this site is no longer just for second-hand items, but has a number of "shops" selling new products at discount prices.

It is sensible to cut back on magazine subscriptions, gym memberships, and membership of clubs and societies. Many people have several that they don’t really take advantage of. This can save several hundred pounds or dollars per year!

Saving on Fuel Bills

It is worth checking insulation, since about a third of the heat in a home is lost through poorly insulated walls. Even thick curtains make a substantial difference. Energy-efficient light bulbs are a sensible way of making continuous savings. And checking that one is with the least expensive gas and electricity providers can make a substantial difference

Saving on Personal Finances

It is important for everyone to have the best credit card. Those who have credit card debts should either pay them off by some other means, or switch to a card with a 0% balance transfer offer. It is a good idea to work out a budget…and stick to it. And it is always worth checking if there is anything that can be reclaimed, such as mortgage fees, any benefits…or even the large number of Premium Bond prizes which remain unclaimed!

For those who manage to do all of the above - reducing money spent when shopping, travelling, and when at home - really significant savings can be made. Some peole find that they can then use the money saved by such means to throw that dinner party, take that once-in-a-lifetime-holiday, or buy that long-coveted dress!

The copyright of the article How to Save Money During the Credit Crunch in Family Budgeting is owned by Helen Krasner. Permission to republish How to Save Money During the Credit Crunch in print or online must be granted by the author in writing.