What Are Some Practical Ways to Cut Spending Now?

You can your cut spending now by following just a few tips.

Cut Spending NowDo you need to cut spending now, but you are not sure where to begin? Title Tree helps people like you manage their budgets in all kinds of ways. Follow these practical tips on trimming the fat to help your ends meet and to watch your savings stock up.

Tip #1: Automate Expense Tracking

Do you use a debit card? What about a computer or smartphone? If so, Mint.com is perfect for helping you get your spending on track. Sign up and include information on your bank or credit cards. The software automatically records how you spend your money. It gives you a crystal clear view of how your budget plans deviate from the realities.

Once you realize where your money is going, the application will also help you set – and stick to – financial goals. Just make sure to include some spending money in your plan. Similar to fad dieting, trying to maintain strict control of your spending eventually leads to over-indulging.

Tip #2: Start Your Savings Plan Right Away

Savings? Who has the money for that? Look closely. You likely have room in your budget for savings, even if it’s just $5 a paycheck. Start small and set the money to automatically come out of your bank. Ask your bank how to set up a transfer from your checking account to your savings account on the same day every month. Periodically review your savings account to see if you can set aside any more money. Once you start saving, you’ll be motivated to put aside even more money, which makes it much easier to cut spending now.

To be financially safe, you want to build up an emergency fund worth roughly 3 – 6 months of your monthly bills. This is money you keep in the bank in case you lose your job, lose your home, have a car breakdown or other true emergency. You may also want a savings account for special purchases, like a summer vacation, kids’ birthday gifts or a down-payment for a home purchase. Many banks make it easy to set up multiple savings accounts and to automate transfers. Others will require you to come into the bank and set these up in person.

Tip #3: Make the Biggest Dent in Your Budget

Cut Spending NowIf you need to cut your spending fast, skip nitpicking your expenses. Take a look at your big bills first. Make sure your shelter, utilities and grocery budget are secure. Then move on to the expenses that safeguard your assets – insurance payments. Once those are taken care of, find room in your budget for extras like cable and cell phone bills. This last group may be regular payments you’re expected to make, but they can often be placed on hold when needed.

When people go on vacation, for instance, they often suspend their Internet or cable service. While it extends their contract, they don’t receive a bill in the months they’re away. You can often do the same thing when facing financial problems. A cell phone bill can be several hundred dollars a month all on its own. You may be able to free up your budget with one big change until you’re able to increase your income or cut back on your other expenses.

Cut spending now using these tips, and stretch your budget farther than ever before. If you need more help making ends meet, you can always come to Title Tree for help. Call, click, or come into the Title Tree nearest to you. You’ll see first-hand why we’re known for our excellent customer service – and the best rates in town.