Whether you’re struggling to weather a period of unemployment or just wanting to make sure that you spend your money well, a review of the household budget is sure to net some cash. Many of us don’t think too much about what we spend. If you’re trying to cut back on expenses, you may just be bypassing luxuries like expensive shoes and eating out. But that’s not enough. To really save the big bucks, you need to step back and take a look at what you’re spending.

Start with a budget. If you’ve never done it before, take a guess at how much you spend each month on mortgage or rent, utilities, groceries, car expenses, entertainment and other categories. You can put your budget in Excel, on paper, or in a program like Money. Once you have a month’s worth of data, start your examination.

Take a look at one category, for example, car expenses. What’s in there? Gasoline, car payments, insurance, repairs? Anything else? Don’t fall into the trap of dismissing at item as ‘unchangeable’. Anything can be changed, and it’s worth thinking about. You probably think that it’s not worth it to change something, and you may be right. For instance, you spend a lot of money on gasoline. What are the options? You could carpool, take public transportation more often, buy a smaller car or a motorcycle, get a hybrid, or maybe switch to a less expensive gas station. Some of the options are doable in your situation, while others aren’t. Switching to a motorcycle could work if you live in a sunny climate, but might not be so great if it snows where you live. Buying a hybrid is a good idea if it’s almost time to get a new car anyway, but not if your existing car is still running strong. The point is that you have to look at each item and think outside the box.

One type of expense to pay close attention to is the kind that is fixed each month or even each year. Can’t do anything about property taxes or income taxes? Maybe. Or maybe you could file for re-evaluation if your property value has decreased. Maybe you could put money into a retirement fund to decrease your income tax. When was the last time you shopped around for life, renters or motorcycle insurance? Take the time to get new quotes. It may be very worth your while.

Try cancelling something. Businesses are desperate to keep the customers they have. Call your credit card company to cancel your credit card. They’ll transfer you to a sales person who has the authority to reduce your interest rate or offer other perks. Just be careful not to cancel something you can’t live without, because they may or may not negotiate to keep you.

If you go through your expenses occasionally with the goal of reducing your costs, you’ll save a bundle without missing out on anything. The longer you’ve gone without reviewing your budget, the more money you probably waste each month without even knowing it. Take a little time to make sure that you’re spending your money wisely. You may even find enough change to go out to dinner!

Author Bio: Written by Coleen Smith. Motorcycle Insurance Comparison Motor Bike Insurance Quotes Online Motorcycle Insurance Quotes

Category: Finances
Keywords: household budget, saving money, cutting costs, family budgeting