I love reading articles like this partly because it gives me a window in to someone else’s finances but also because they often have good ideas that people can use RIGHT NOW to save money.
In this article, Elisabeth Leamy helps the Gunn family from Oswego NY save over $58,000 (over time) by implementing simple changes to their spending patterns.
Some of the top tips:
- Cut cable
- Shop for cheaper car inurance
- Use a credit union
- Shop for a cheaper cel phone plan
- Appeal their tax assessment
At first I was a little hesitant about the advice they were given to refinance their home loan and roll in their credit card debt but I think they made the right choice, especially after seeing their existing interest rates. The key will be to avoid using those credit cards in the future and to control their overall spending so that they don’t end up with double the amount of debt down the road. I also liked the shorter terms that they chose for their new loans to minimize that risk and not just spread the debt out over a long period of time.
Anyway, I’d recommend reading the article. It has some good tips and just reinforces the kind of things that we should all be watching on an ongoing basis. It really isn’t about how much you make, but rather how much you spend. Monthly bills like cable, cel phones, car insurance and the like are simply big gaping holes in your wallet that slowly suck you dry of all your money. A little sacrifice can go a LONG way towards a healthy financial footing.